Colorado School Finance Primer Impact On Archuleta School District 50 Jt. 2015-2016 School Year

Colorado School Finance (Equalization) Enacted in 1994 by the Legislature “Your quality of education should not be determined by your zip code.” Base funding plus “factors” to create a Per Pupil Revenue (PPR) Local share of property taxes plus State share As of 2010, Capital Reserve was eliminated from PPR Lobato suit: “No rational basis for funding formula” P.2

Gallagher Amendment Enacted in 1982 by Statewide vote (65%) Taxes assessed value of business and residential property differently Business = 29.00% of property value taxed Residential = 7.96% of property value taxed http://goo.gl/LyAz86 CDE Posting about Gallagher http://goo.gl/qp2PQ1 CSU presentation on Gallagher P.3

TABOR Amendment Enacted in 1992 by Statewide vote (53.6%) Establishes growth plus inflation limits on tax revenue Uses Denver-Boulder CPI Requires vote to raise any tax New taxes Retaining taxes Debt and obligations https://goo.gl/2YiJxk Colorado Treasurer P.4

Amendment 23 Enacted in 2000 by Statewide vote (52.7%) Requires growth + inflation for base funding Provided 1% catch-up for 10 years Inflation is based on CPI Interpretations around the intent led to an across the board cut in 2010, called the Negative Factor http://goo.gl/k1grBf Denver Boulder Consumer Price Index P.5

Negative Factor Enacted in 2010 by the Legislature Applies a percent cut to School Finance Act Courts recently ruled Negative Factor is NOT in conflict with Amendment 23 Amounts to approximately 12.1% annual cut in program funding to most districts ($9.0M for ASD: 2010-11 to 2015-16) Total statewide 15-16 cut = $855.2 million (ASD=$1.38M) https://goo.gl/VAVNJ1 CDE School Finance Brochure P.6

Net Effect Districts increasingly look to local community support, as in additional taxation, for capital maintenance and general fund shortfall support (Bonds and MLO). ASD State Ave. Mill Levy 2008: 23.715 Mills 35.932 Mills Mill Levy 2016: 24.737 Mills 39.006 Mills P.7

2015-16 Mill Levy Tax Calculations (per $100K of Market Value) Residential Non-residential Portion of residential / business market value $100,000 Tax factor on market value 7.96% 29.00% Taxable value (Assessed Valuation) $7,960 $29,000 x Mill levy rate for FY 2015-16 (final) 24.737 / Mill factor 1,000 Property taxes per year for each $100K in residential / business market value $197/yr $717/yr P.8

MILL LEVY RATE COMPARISON FY 2015-16 FY 2014-15 ARCHULETA BAYFIELD DEL NORTE DOLORES DURANGO IGNACIO MANCOS MONTE VISTA STATE AVERAGE * SFA Program Formula Mills 21.014 8.229 16.308 20.883 6.601 2.274 15.658 27.000 20.529 (Local Share) Hold Harmless Override Mills 0.000 0.135 1.931 0.236 Voter Approved Override Mills 7.933 9.444 7.062 4.125 2.571 7.082 3.826 8.620 Abatement Mills 0.147 0.141 0.033 0.055 0.066 0.005 0.302 Bond Redemption Mills 3.576 3.370 5.269 7.752 6.367 6.620 11.450 8.770 TOTAL MILL LEVY 24.737 24.525 21.599 25.807 35.697 19.090 11.470 22.740 42.578 39.006 Override Mill Levy Revenue $0 $2,051,187 $832,636 $390,023 $8,220,962 $1,100,186 $333,790 $194,955 Override Revenue as % of Total 0.00% 18.98% 19.01% 6.26% 21.48% 16.14% 8.44% 2.18% Program Formula Revenue P.9 * Note: The Total Mill Levy for the "State Average" includes mills for levies not listed above such as Categorical Buyouts, Excess Hold Harmless, Transportation, Special Building & Technology, and Full Day Kindergarten.

Quick facts about a “Mill” in ASD 1.000 Mill generates $270,774 annually 1.000 Mill costs $7.96/year per $100,000 market value of a Residential property 1.000 Mill costs $29.00/year per $100,000 market value of a Non-Residential property Mills are used to generate annual revenue for general operations (Mill Levy Override) and for capital borrowing (Bond) P.10

Questions? Linda Reed Superintendent P.O. Box 1498 309 Lewis Street Pagosa Springs, CO 81147 lreed@pagosa.k12.co.us 970-264-2228 x 402 Mike Hodgson Finance Director P.O. Box 1498 309 Lewis Street Pagosa Springs, CO 81147 mhodgson@pagosa.k12.co.us 970-264-2228 x 403