PUBLIC SCHOOL FINANCE Budget Workshops April & May 2014 Leanne Emm Associate Commissioner 303-866-6202 Emm_l@cde.state.co.us

Agenda BEST Program Transportation Nutrition School Finance Total Program Funding 2013-14 Funding 2014-15 School Finance Act – HB14-1298 HB14-1292 – Student Success Act Transparency

BEST Program

BEST Program http://www.cde.state.co.us/cdefinance/capconstbest Applications were submitted for this year’s cycle on Friday, January 31 Contact Staff in BEST to get started on next year’s application http://www.cde.state.co.us/cdefinance/capconstbest

Transportation

School Bus Minimum Standards 11/9/2018 School Bus Minimum Standards Proposed revisions to 1 CCR 301-25 Minimum Standards Governing School Transportation Vehicles Aligns with new federal standards Consolidates rules and eliminate excess language Includes about a dozen substantive regulatory changes Revised with input from school districts and industry representatives Reviewed and approved by Transportation Advisory Council (TAC) Major Regulatory Changes 1.00 – Exemptions – Commissioner or designee may provide exemptions 11.01/11.02/11.03 – Battery – in one location, adequate cable to allow full extension 14.01/32.03 – Maximum Design Capacity – specify maximum design capacity on plate or decal, clarification 16.07 – Kentucky Pole Test – current practice included in standards 23.05 – Body Fluid Clean-up Kit – must be included in vehicle 23.06 – Emergency Equipment Securely Mounted - clarification 26.05 – Allow Yellow Nosing on Step Tread – current practice included in standards 32.06 – Stop and Flashing Warning Signal – allows for current practice and newer technology 32.08 – Advertising – shall not interfere with retro-reflective tape on side of bus 37.05 – Front Turn Signal - clarification   6

Next Steps – ESTIMATED Timeline 11/9/2018 Next Steps – ESTIMATED Timeline Meetings with districts and industry vendor representatives to provide final review and input on proposed rules statewide – May 2014 Presentation at Transportation Advisory Council (TAC) and Transportation Summer Workshop to provide final review and input on proposed rules – June 2014 Draft rules presented to SBE/notice of rulemaking hearing published – August 2014 SBE holds public hearing/adopts rules – October 2014 New minimum standards rules in effect – December 2014   7

Nutrition

Upcoming Implementations Breakfast after the Bell Competitive Food Rules Upcoming Trainings: Breakfast After the Bell – April 30 Meal Pattern Implementation – May dates Direct Certification Training – Mandatory – April – August – various Lots coming up!! Website: http://www.cde.state.co.us/nutrition/nutritrainings

School Finance Total Program Funding

Total Program Funding Formula Total Program Funding equals: =(funded pupil count x formula per pupil funding) + at-risk funding + online & ASCENT funding After Total Program is calculated, the Negative Factor is Applied

Base Per Pupil Funding 2013-14 2014-15 – Base Funding - $5,954.28 Increase of $111.02 from prior year Inflation of 1.9% 2014-15 – Base Funding - $6,121.00 Increase of $166.72 Inflation of 2.8%

Formula Per Pupil Funding - Factors Base per pupil funding is adjusted by factors Cost of Living Personnel & Non-personnel costs Size of district Determine At-Risk Funding, On-line and ASCENT Funding Once Total Program is determined, the negative factor is applied 2013-14 – 15.42% - per supplemental Once the base funding has been set, the base has factors applied. These factors determine the per pupil funding amount by district and each district is different. Cost of living – factor that attempts to reflect the differences between districts for the cost of housing, goods and services. Aspen has a higher cost of living factor than a small rural district. Personnel costs factor – based on enrollment and incorporates cost of living for personnel. Size factor – driven by enrollment and attempts to reflect purchasing power within districts. Small districts have greater size factor adjustments. At-risk funding – based on the numbers of students qualifying for free lunches On-Line funding – based on the number of students enrolled in an online program within the district. There are various rules that make a student eligible to be counted. Once these factors are applied to the base, a total per pupil funding amount is determined for district. This amount is then multiplied by the districts funded pupil count to arrive at total program funding.

Illustration Example District X Total Funded Pupil Count (includes on-line) 44,137.7 On-line Pupil Count 4,414.0   Base Funding (BF) $5,954.28 Cost of Living (CL) 1.222 Personnel Costs (PL) 90.50% Size (SZ) 1.0297 Total Formula Per-Pupil Funding [SZ*[(BF*CL*PL)+(BF*(1-PL))] $7,362.93 Total Formula Funding (Formula Per Pupil Funding * (Total Funded Pupils – On-Line – ASCENT)) $292,482,658 Total At-Risk Funding +$13,329,252 Total On-Line/ASCENT Funding +$31,692,520 Total Program Funding (Pre - Negative Factor) =$337,504,430 Per-Pupil = Total Program Funding / Total Funded Pupil Count (Pre - Negative Factor) $7,646.62 Negative Factor -15.44% * Total Program Funding (52,110,684) Total Program Funding (Post - Negative Factor) $285,393,746 Total Program Per-Pupil Funding (Post -Negative Factor) $6,465.99 Total Program Funding This is an illustration of how a district’s Total Program Funding and per pupil funding is calculated.

Supplemental Funding Request 2013-14

Original Appropriation Actual – 2013-14 Original Appropriation Actual 2013-14* Change (with Supplemental) Funded Pupils 828,045 830,833 2,788 At-Risk Pupils 306,370 305,261 (1,109) Total Program Prior to Negative Factor $6,514,240,501 $6,531,235,817 $16,995,316 Negative Factor ($1,005,854,377) ($1,004,302,068) $1,552,309 Total Program After Negative Factor $5,508,386,124 $5,526,933,749 $18,547,625 Average Per Pupil Funding $6,652.28 $0 Sources Colorado Department of Education

Requested Supplemental Appropriation FY 2013-14 Total Revised Request Local vs. State Share 2013-14 FY 2013-14 Original Appropriation Requested Supplemental Appropriation FY 2013-14 Total Revised Request State Share $3,532,662,765 $55,437,495 $3,588,100,260 Local Property Tax 1,844,328,022 (36,359,075) 1,807,968,947 Specific Ownership Tax 131,395,337 (530,795) 130,864,542 TOTAL $5,508,386,124 $18,547,625 $5,526,933,749

School Finance Act HB14-1298. SUBJECT TO CHANGE School Finance Act HB14-1298* SUBJECT TO CHANGE *Assumes passage of HB14-1292 – Student Success Act

HB14-1298 School Finance Act Every year, the School Finance Act is a piece of legislation that is brought forward to fund schools in the next budget year Resource – Legislative Summary posted on CDE Website This is sent out on the Finance List Serve Has passed the house, will now start in the senate Starts on senate floor – first reading/introduction Assigned to committees – amendments? Senate floor – second reading – amendments? Senate floor – third reading – amendments? Potential conference committee to iron out differences May 7 is last day of session

*Legislative action required; assumes passage of HB14-1292 in millions

*Legislative action required; assumes passage of HB14-1292

Where are we? 2014-15 Budget will be set by May 7, 2014 End of legislative session unless special session CDE will continue to send out and post updates to both the Legislative Summaries and the “runs” as we receive new information

Public School Financial Transparency Act

Required Documents Annual Budgets Financial Audit District Budget Document Uniform Budget Summary Sheet Financial Audit Quarterly Financial Statements Salary Schedules or Policies Accounts Payable Check Registers Credit, Debit and Purchase Card Statements Investment Performance Reports

Compliance Timeline Update information within 60 days Completion of report, statements, applicable information For example Budget Posted by August 30 if adopted June 30

Financial Transparency Act Not required to post personal information relating to payroll other information that is confidential or protected from public disclosure pursuant to state or federal law Examples: HIPPA; IDEA; Homeless

Questions