PUBLIC SCHOOL FINANCE UPDATE November, 2011 Leanne Emm Assistant Commissioner 303-866-6202 emm_l@cde.state.co.us

Agenda Accreditation Report & Financial Transparency Governor’s Budget Request

Annual Audits, Accreditation Report & Financial Transparency

Annual Audits – June 30, 2011 Present to your Board of Education by November 30 Postmarked audited financial statements & Accreditation Report CDE and State Auditors Office by December 30 ADE Submission by December 30 Requests for extensions must be made before December 30

FY2010-11 Accreditation Report Two new questions - Financial Transparency C.R.S. 22-44-301 through 304 Has the school district complied with all of the reporting requirements of the Public School Financial Transparency Act? Has the school district’s charter school(s) complied with all the reporting requirements of the Public School Financial Transparency Act?

Financial Transparency HB 10-1036 requires each “Local Education Provider” (LEP) to post financial information on-line, in a downloadable format, for free public access. LEP is defined as: A School District: A Board of Cooperative Services (BOCES); A Charter School Institute; A District Charter School; and An Institute Charter School. See also Colorado Revised Statutes 22-44-301 thru 304.

Financial Transparency Commencing July 1, 2010: District Adopted Budget for FY09-10 and FY10-11 District Financial Audit Quarterly Financial Statements Salary Schedules or Policies Additionally Commencing July 1, 2011: Accounts Payable Check Registers Credit, Debit and Purchase Card Statements

Financial Transparency Additionally Commencing July 1, 2012: Investment Performance Reports Personal information relating to payroll, including but not limited to payroll deductions or contributions, or any other information that is confidential or otherwise protected from public disclosure is not required to be posted.

Financial Transparency Available online and updated within sixty days after the completion or receipt of the applicable report, statement, or document Maintain the prior two budget years’ financial information on-line until the end of the current budget year CDE Website – template as prescribed by HB 10-1036 http://www.cde.state.co.us/cdefinance/sfFinancialTransparency.htm

Governor’s Budget Request 2012-13

Source State of Colorado: General Fund - $7. 01 Billion, 2011-2012 Source State of Colorado: General Fund - $7.01 Billion, 2011-2012. Budget in       Brief. Joint Budget Committee, 2011. Web. 29 July 2011.       <http://www.state.co.us/gov_dir/leg_dir/jbc/FY11-12BIB.pdf>.

Source Governor’s Budget Request

Assumptions FY2012-13 Budget Request Estimated Change Total Pupil Growth 6,698 812,589 At-Risk Growth 2,666 290,683 Inflation Estimate 3.5% NA Base Per Pupil Funding $197.22 $5,831.99 Sources Colorado Department of Education Late February 2012 – actual inflation

Assumptions FY2012-13 Budget Request Preliminary assessed values from counties indicate original decline anticipated for FY 2011-12 is not as high Anticipated decline of 7.21% Preliminary August AVs – decline of 5.28% Potential increase in local share of $35.4 million for 2011-12 For 2012-13, estimated growth in local share of $20.6 million

Assumptions FY2012-13 Budget Request $67.5 million through SB11-230 For FY2011-12, intent to be used for mid-year changes in enrollment or assessed values Request for FY2012-13 utilizes these funds to offset any needed increases in negative factor

Revised 2011-12 Appropriation FY2012-13 Budget Request   Revised 2011-12 Appropriation 2012-13 Request Change Total Program prior to Negative Factor (Growth & Inflation) 5,987,109,016 6,248,516,540 261,407,524 Negative Factor (773,365,943) (1,123,773,467) (350,407,524) Revised Total Program $5,213,743,073 $5,124,743,073 ($89,000,000) Negative Factor Percentage -12.97% -18.04% -5.07% Sources Colorado Department of Education

Sources 1) Long Appropriations Bill, SB11-209 2) "Public School Finance Act of 1994 - FY 2011-12." Public School Finance.       Colorado Dept. of Education, 2008. Web. 29 July 2011.       <http://www.cde.state.co.us/cdefinance/SchoolFinanceFundingFY2011-12.htm>. The School Finance Act is funded with a combination of State General Fund; local funds including property tax and specific ownership tax and other state funds which include the State Education Fund and the Public School Fund.

FY2012-13 Budget Request Original Appropriation   Original Appropriation Revised 2011-12 Appropriation 2012-13 Request Change from Revised to Request State Share 3,336,347,674 3,302,007,443 3,192,359,720 (109,647,723) Local Property Tax 1,738,519,123 1,773,907,753 1,790,420,640 16,512,887 Specific Ownership Tax 137,827,877 141,962,713 4,134,836 Total $5,212,694,674 $5,213,743,073 $5,124,743,073 ($89,000,000) Sources Colorado Department of Education

FY2012-13 Budget Request Changes in Total Program Estimated Growth and Inflation – not funded $261,407,524 Budget Balancing Measure – year over year reduction 89,000,000 Total that Represents the Increase in the Negative Factor $350,407,524

Gap represents negative factor of 18.04% The actual funded Total Program has declined 8.26% from the high in 2009-10. Gap represents negative factor of 18.04% The light blue bars illustrate Total Program Funding per the School Finance Act Formula prior to application of the negative factor. The dark blue bars illustrate the Total Program Funding after the application of the negative factor or the actual amount of funding available to districts. Total Program Funding in FY2012-13 would be $6.248 billion which includes assumptions for pupil growth and inflation. This is an increase of $261.4 million over FY2011-12. Actual Total Program Funding is projected to decrease by $89 million between FY2011-12 and FY2012-13 as illustrated by the dark blue bars. The negative factor for FY2012-13 (the gap between the light blue and dark blue bar) is estimated to be $1.12 billion or 18.04%. The negative factor amount (the gap) will increase by $350.4 million from FY2011-12. This is due to not funding pupil growth and inflation of $261.4 million and also cutting available funding by $89 million. Since the height of actual Total Program Funding in 2009-10, funding has declined by 8.26% as illustrated by the black line.

Average Per Pupil Funding FY2012-13 Budget Request Actual Funded Total Program* Change from Prior Year Cumulative Change Funded Pupils Average Per Pupil Funding 2008-09 Actual $5,347,325,784 NA 778,136 $6,872 2009-10 $5,586,087,039 $238,761,255 789,497 $7,076 2010-11 $5,439,939,345 ($146,147,693) $92,613,561 798,600 $6,812 2011-12 ESTIMATE $5,213,743,073 ($226,196,273) ($133,582,711) 805,891 $6,470 2012-13 November Budget Request $5,124,743,073 ($89,000,000) ($222,582,711) 812,589 $6,307 % Change from Prior Year -1.71% 0.83% -2.52% *Includes effects of rescissions and legislative actions.

2011-12 Appropriated Total Program Funding by Component, With and Without Negative Factor Source Appropriated Total Program Funding by Component, With and Without Negative       Factor*. Chart. FY10-11. Colorado Legislative Council. Web. 29       July 2011. <http://www.colorado.gov/cs/       Satellite?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=Mungo       Blobs&blobwhere=1251673648947&ssbinary=true>. * as updated by Legislative Council staff per SB11-230. As mentioned earlier, statewide base per pupil funding accounts for $4.5 billion of the funding that will be distributed this next school year through the School Finance Act formula.

General Planning Recommended to review Property Tax Collections Is your percentage of collections remaining strong? Is it declining or increasing? Delinquencies? Remember – the State assumes 100% collections when setting Total Program If you have less than 100% - your budget should reflect this Pupil Enrollment

Upcoming Pupil Counts and Assessed Values Finalized in December Mill Levies & any adjustments to AVs January/February Supplemental Budget Request Submitted based revised counts, AVs, mills February

Upcoming Training Sessions Financial Policies and Procedures Handbook Update Webinar Wednesday, November 16 – 10:00 Thursday, December 8 – 2:00 BEST Program Thursday, November 17 – 10:30

Questions?