1. PUBLIC SCHOOL FINANCE UPDATE November, 2011
Leanne Emm
Assistant Commissioner

2. Agenda Accreditation Report & Financial Transparency
Governor’s Budget Request

3. Annual Audits, Accreditation Report & Financial Transparency

4. 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

5. FY2010-11 Accreditation Report
Two new questions - Financial Transparency
C.R.S 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?

6. Financial Transparency
HB 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 thru 304.

7. 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

8. 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.

9. 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. Governor’s Budget Request 2012-13

11. Source State of Colorado: General Fund - $7. 01 Billion, 2011-2012
Source State of Colorado: General Fund - $7.01 Billion, Budget in       Brief. Joint Budget Committee, Web. 29 July       <

12. Source Governor’s Budget Request

13. 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

14. Assumptions FY2012-13 Budget Request
Preliminary assessed values from counties indicate original decline anticipated for FY 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
For , estimated growth in local share of $20.6 million

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

16. Revised 2011-12 Appropriation
FY Budget Request
Revised Appropriation
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

17. Sources
1) Long Appropriations Bill, SB11-209
2) "Public School Finance Act of FY " Public School Finance.       Colorado Dept. of Education, Web. 29 July       <
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.

18. FY2012-13 Budget Request Original Appropriation
Original Appropriation
Revised Appropriation
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

19. 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

20. Gap represents negative factor of 18.04%
The actual funded Total Program has declined 8.26% from the high in
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 FY would be $6.248 billion which includes assumptions for pupil growth and inflation. This is an increase of $261.4 million over FY
Actual Total Program Funding is projected to decrease by $89 million between FY and FY as illustrated by the dark blue bars.
The negative factor for FY (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 FY 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 , funding has declined by 8.26% as illustrated by the black line.

21. Average Per Pupil Funding
FY Budget Request
Actual Funded
Total Program*
Change from
Prior Year
Cumulative
Change
Funded
Pupils
Average Per Pupil Funding
Actual
$5,347,325,784 NA
778,136
$6,872
$5,586,087,039
$238,761,255
789,497
$7,076
$5,439,939,345
($146,147,693)
$92,613,561
798,600
$6,812
ESTIMATE
$5,213,743,073
($226,196,273)
($133,582,711)
805,891
$6,470
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.

22. 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. FY Colorado Legislative Council. Web. 29       July <       Satellite?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=Mungo       Blobs&blobwhere= &ssbinary=true>.
* as updated by Legislative Council staff per SB
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.

23. 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

24. 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

25. 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

26. Questions?