School Finance Mary Lynn Christel Public School Finance and Operations Division Christel_m@cde.state.co.us – 303-866-6818 October 2015

Agenda Pupil Count Total Program Funding Assessed Valuations and Mill Levies Questions

Pupil Counts Funding is based on annual October pupil count 11/16/2018 Pupil Counts Funding is based on annual October pupil count Pupils in grades 1 through 12 are counted as either full-time or part-time. Kindergarten, special education preschool and CPP/ECARE are counted as part-time. Counts must be finalized by November 10. Duplicate count process - November 13 – district documentation due to CDE Audit November 20 – last date to resubmit data file Count day window 5 days prior and 5 days after official count date – typically October 1 unless weekend or holiday. If absent, district can provide documentation that student re-established attendance prior to October 31.

Funded Pupil Count Funded Pupil Count = Greater of K-12 FTE (not including online and ASCENT) or average of current year and up to four prior years K-12 FTE (not including online and ASCENT) Plus Full Day Kindergarten Factor (kindergarten headcount x .08) Plus CPP/ECARE Plus online Plus ASCENT Minimum funded pupil count is 50.

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 2014-15 Base Funding - $6,121.00 2015-16 Increase of $166.72 Inflation of 2.8% 2015-16 Base Funding - $6,292.39 Increase of $171.39

Formula Per Pupil Funding - Factors Base per pupil funding is adjusted by factors Cost of Living – Reflects differences between districts for cost of housing, goods and services. Study occurs every other year Personnel & Non-personnel Factors Formula in statute and based on district enrollment Reflects cost of salaries and benefits for district personnel Size Factor Factors set in statute and based on district enrollment 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 salaries and benefits for district 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 district’s funded pupil count to arrive at total program funding.

At-Risk Funding Determine At-Risk Funding 11/16/2018 At-Risk Funding Determine At-Risk Funding At-risk funding based on K-12 free lunch counts Formula uses actual count or calculated grades 1- 8 percentage Concentration factor – applied to districts with at-risk percentage greater than statewide average. Concentration factor is difference between district at-risk percentage and statewide average.

Online & ASCENT Funding Online and ASCENT funding is calculated by multiplying the fixed per pupil funding amount times the online and/or ASCENT count. Total Program Funding equals = (funded pupil count x formula per pupil funding) + at-risk funding + online & ASCENT funding Once Total Program is determined, the negative factor is applied 2015-16 – 12.13%

Illustration of Total Program Funding Calculation Illustration Examples Low PPR High PPR On-line PPR   Funded Pupil Count 7,715.5 65.4 63,274.0 Base Funding (BF) $6,292.39 Cost of Living (CL) 1.186 1.175 1.244 Personnel Costs (PL) 88.49% 80.02% 90.50% Size (SZ) 1.0297 2.3379 Formula Per-Pupil Funding [SZ*[(BF*CL*PL)+(BF*(1-PL))] $7,545.71 $16,771.03 $7,910.03 At-Risk Pupil Count 2,431.0 28.0 6,199.0 "Base" At-Risk Funding 12% * Formula Per-pupil Funding $905 $2,013 $949 "Population" At-Risk Funding district % > state % N/A Total At-Risk Funding (included in Total Per-Pupil Funding) $2,201,234 $56,351 $5,884,111 On-line Pupil Count 2,674.5 Per-Pupil Funding $7,588 Total On-Line Funding $20,294,106

Total Program Funding (continued) Total Program Formula (Pre – Negative Factor) $60,420,134 $1,153,176 $505,521,914 Per-Pupil (Pre - Negative Factor) $7,831.01 $17,632.66 $7,989.41   Total Program Formula Guarantee $60,762,803 $515,052 $498,309,325 Minimum Per-Pupil Funding Guarantee $7,875.42 Negative Factor -12.13% ($7,372,181.89) ($139,911.64) ($61,333,567.89) Total Program Funding (Post - Negative Factor) $53,390,621 $1,013,264 $444,188,346 Total Program Per-Pupil Funding (Post -Negative Factor) $6,919.92 $15,493.34 $7,020.08

Specific Ownership Taxes (SOT) SOT are paid on motor vehicles – collected by counties Counties distribute SOT to all taxing entities in the county Distributed based on the proportion of property taxes collected by each taxing entity Property Taxes + Specific Ownership Taxes = Local Share Total Program – Local Share = State Share

Specific Ownership Taxes Calculation for Local Share Reported by district through data pipeline Adjusted by prior year mill levies. Sample Calculation Total Program Specific Ownership Taxes Total SOT Reported by District Total Mills Override Mill Bond Mill Net Mills Percentage Applied Actual SOT applied to local share   1,626,190.99 46.794 10.179 9.996 26.619 0.56885498 925,066.85

Property Tax & Assessed Values Odd Years – reassessment year for counties 2015 is reassessment year In August, assessors send preliminary AVs to districts In December, assessors send final AVs to districts and CDE AVs are plugged into the school finance formula and the local share is determined based upon mill levies Once the local share is determined (property tax plus specific ownership tax), the state “backfills” the rest of total program Legislative Council bases estimates for the following year on the December actuals – built into School Finance Act

Property Tax & Assessed Values Mill levies Equals one-tenth of one percent (.001) Assessed values based on percentage of actual value Residential – 7.96% of actual Most other (commercial) – 29% In 2007-08, total program mill levies were frozen at 27 mills or less Four districts that have not passed TABOR elections are a bit different AV X mill levy = property taxes $10,000,000 AV X .027 mills = $270,000 property tax

Illustration of Two Districts 11/16/2018 Illustration of Two Districts Interest free loan program available for districts with little or no state aid.

2016 Legislative Session November, 2015 Governor Submits Budget Request for 2016-17 THIS IS ONLY A PROPOSAL! Late November/December 2015 Joint Budget Committee Hearings with Department The JBC hears about the 2016-17 Budget Request from the Department and seeks any information January 2016 Governor Submits Supplemental Budget Request for 2015-16 Adjusts the Current Year Budget for actual Pupil Counts, AVs, etc. Governor Submits Budget Amendments for next budget year Revised estimates for next year’s students, AVs, etc based on actual Spring 2016 JBC Develops State Budget – Figure Setting & Long Bill – pass by GA SB15-267 sets starting point – no change in negative factor School Finance Bill Introduced and passed Adjusts the Long Bill numbers

http://www.cde.state.co.us/cdefinance Website Resources All things Public School Finance are located on the CDE website: http://www.cde.state.co.us/cdefinance State Share Payment Reports and Calculation Worksheets can be found here: http://www.cde.state.co.us/cdefinance/publicschoolfinanceactof1994-fy2015-16