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Great Education Board - Legislative �Re- cap and impacts on: �K-12 Funding

Tracie Rainey, Executive Director

Colorado School Finance Project

May 19, 2022

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Colorado School Finance Project

May 19, 2022

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.

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Goals and discussion of Presentation

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May 19, 2022

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  • School Finance

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  • Mill Levies

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  • State Outlook for School Finance
    • March Forecast

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  • Statewide Issues – that has impact

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Process & Timing of Legislature����

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District Budget Process: begins in fall of year for the next fiscal year beginning on July 1.

Department (CDE) hearings for budget requests – State Process

Legislature convenes in January – School districts are ½ way through their fiscal year.

School districts begin budget process for next year and determine hiring - prior to the end of the legislative session.

Creates potential problems for school districts with last minute legislative decisions.

Supplemental process- State “true up” with districts, enrollment impacts

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Legislature sets funding amount for next school year

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Revenue considerations

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  • Legislature begins conversation in December with figure setting for each department

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  • December local share determined and certified. Legislative goal is to increase local share

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  • Increase from mill levy correction completed 1st year

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Understanding Mills���

May 19, 2022

$200,000

7.15%

$14,300

$200,000

29%

Residential Assessment Rate (RAR)

Non-Residential Assessment Rate

$58,000

$14,300

27

$386.10

$58,000

27

$1,566.00

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May 18, 2022

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School District Funding������

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  • First Dollars in – Local Revenue - property taxes – residential and non residential and ownership taxes
  • State backfills difference so ever district’s “base funding” starts the same.
  • Then factors applied less the budget stabilization factor
  • Per Pupil Revenue

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Budget Stabilization Factor- �$9.6B since 2009-10

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Big Ideas in 2022 legislation

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May 19, 2022

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  • Pay down Budget Stabilization Factor

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  • Interim Committee legislation

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  • Mill levy match for overrides

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  • Tax policy changes – impacts local share for 2 years

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Legislation

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  • Mill Levy Override State Matching – SB22-202

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  • Increased funding for Special Education - $80 million –SB22-207

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  • At-risk – working group this summer – HB22-1202

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  • PERA – backfill with interest and reserve for future – HB22-1029

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  • Universal Preschool begins in 2023 – HB22-1295

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  • School Finance – paid down B/S factor – HB22-1390

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Universal Pre-K update

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  • New Department of Early Childhood created
  • A year of planning and many details to be determined.

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  • Service to begin for all 4-year-olds in Fall 2024
    • 10 hours a week – all that revenue supports

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Budget Forecast – June, September and�December

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  • Economy growing – though slowing
    • TABOR Refunds for the foreseeable future

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Inflation increasing

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  • 7.1% 2022
  • 3.9% ? 2023
  • 2.4% ? 2024

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Stabilization Factor

Student Count

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On the horizon

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Interim Committee on School Finance – student count, cost of living, size/remote districts

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Implementation of UPK

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Budget pressures caused by inflation, ongoing Ukraine War, slowing economy, ballot box, local revenue changes and impact

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May 19, 2022

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Ballot Box Nov 2022

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  1. Referred measure HB22-1414 – universal meals
  2. Income tax reduction – have already qualified for the ballot
  3. Initiative 63 – diverting additional dollars, already collected to the state ed fund for school districts to recruit, retain and pay teachers and student support professionals-signatures being collected currently.

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�Questions �& Stay Connected

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  • 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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