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NEW SCHOOL FINANCE ACT and STATE BUDGET

JANUARY 2025

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WHO WE ARE

  • �Non-profit, non-partisan
  • �Supported by school district contributions
  • �School finance analysis for local and state policy makers since 1995
  • �Governed by a board comprised of national and state experts on school finance

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Our Mission: To compile, collect and distribute research-based, non-partisan information and data on topics related to school finance for state and local policymakers. CSFP also supports school districts by providing expertise, technical assistance and capacity building related to best practices in school finance.

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State Budget

  • State needs to cut $1B from the General Fund
  • Inflation appears to be 2.3% - will be determined in the next few weeks
  • Governor has proposed to remove the declining enrollment averaging from 5 years to current count, impacting K-12 districts differently and the state recouping $191M
  • The supplemental process will make adjustments based on changes in enrollments and local share
    • This potentially changes your state share payment in March or April

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January 2025

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Your District’s Implication

Click HERE to go to spreadsheet or scan →

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January 2025

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New School Finance Formula – HB24-1448

  • Implementation over 6 years, starting in FY 25-26
  • First-year cost of 6-year implementation: $95M
  • The Size Factor will be capped at 6,500 students
  • The Cost-of-Living Factor will be capped at 23% (see Appendix B)
    • Districts who have seen a loss from COL will be given the option to go to their voters to make up their loss of funding
  • Increase weights to .25 for at-risk, ELL, and Tier A SpEd
    • Special ed dollars to be dispersed to AUs
  • Increases minimum funded pupil count to 60
  • At-Risk concentration factor for districts under 6,500
  • Averaging unknown

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Access full bill here.

January 2025

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Impacts from Averaging Change and COL

  • If you are declining in enrollment and you were capped for your Cost-of-living adjustment, your total revenue may look different because of the impact of losing dollars for both of these changes.
  • Some districts will make up some of that loss by increased student weights or district size or remoteness.
  • Critically important to monitor your enrollment numbers - do not assume the state has better numbers than you do.

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January 2025

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Locale Factor

  • New Locale Factor will be included to account for rural remoteness and geographical challenges.�Two locales (Town Remote, Rural Remote) receive an additional $100K
    • Rural Fringe - 0.15
    • Rural distant - 0.20
    • Rural remote - 0.25
    • Town fringe - 0.025
    • Town distant - 0.05
    • Town Remote - 0.10

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January 2025

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Locale Factor cont’d

  • NCES will be updating their locales so it will be important once that information will be available to see if your district has changed categories.
  • This information changes as they update census data and communities can change as they have also altered some of their definitions.

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January 2025

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New Formula cont’d

  • Sustainability requirements – annual review by JBC and House and Senate Education to determine if funds are available for implementation.
    • Will look at local revenue, inflationary pressures, and state revenue
  • Capital construction increase funding for BEST and Charter Schools
  • Implementation of a working group to meet and determine a methodology for Mill Levy Match funds for override.

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January 2025

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SMART Act Requirements

  • SMART Act – CDE must provide during the implementation period
    • Success and challenges of determining Total District funding
    • Reports concerning the budget that is being used at the school level and include performance snapshots
    • Trends and challenges with declining enrollment as well as influx of new arrival students
    • Include state-wide average of per pupil revenue for at-risk, ELL, SpEd
    • District average of per pupil revenue for at-risk, ELL, SpEd as well as per pupil revenue

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January 2025

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When will we know?

  • The General Assembly will wait until the March Revenue Forecast in order to finalize dollars available for K-12 and the state budget (also known as the Long Bill).
  • Typically school finance and the Long Bill run simultaneously in opposing houses and is determined by mid-April.

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We will continue to keep you updated!

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January 2025

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THANKS!

Any questions?

Tracie Rainey�t.rainey@cosfp.org�303-860-9136

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Stay connected

  • https://cosfp.org/
  • @COSFP
  • Colorado School Finance Project -Facebook

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