1. Spring Regional Meeting
Legislative and Finance Update

2. Legislative Updates

3. Mill Levy Funding HB19-1190: Attempted to Strip Mill Levy Funding
Potential funding impacts: elimination of CSI Mill Levy Equalization Funds
Current Status: Postponed Indefinitely

4. Mill Levy Funding
SB (Long Bill): $7M appropriated to CSI Mill Levy Equalization Fund
Funding Impacts: FY20 Mill Levy Equalization funding is estimated* at $378 per funded pupil count
*Subject to change based on changes in funded pupil counts across the portfolio
Current Status: Signed by Governor

5. Capital Construction Bill Numbers: HB19-1055
Financial Impact: FY19-secures $4.25M, FY20 – changes from flat to variable based on charters as % of all students in state, creates grant for new FDK schools.
Programmatic Impact: None
Current Status: Senate passed third reading
Changes the percentage of the state retail marijuana excise tax revenue credited to the assistance fund that is further credited to the charter school facilities assistance account of the assistance fund for distribution to charter schools from 12.5% to a percentage equal to the percentage of pupil enrollment statewide represented by pupils who were enrolled in charter schools for the prior school year; and
Changes the total amount of money annually appropriated from the state education fund for charter school capital construction from a flat amount of $20 million per year to $20 million per year annually adjusted for changes in the percentage of students included in the statewide funded pupil count who are enrolled in charter schools.
On July 1, 2019, transfers $25 million from the assistance fund to the full-day kindergarten facility capital construction fund (kindergarten facility fund);
Requires the BEST board to accept applications from applicants that will provide a full-day kindergarten educational program for the school budget year (state fiscal year ) for formula-based grants for that budget year of the $25 million transferred to the kindergarten facility fund;
Specifies a grant distribution formula that takes into account an applicant's per pupil funding, size factor, and percentages of enrolled pupils who are eligible for free or reduced price lunch, are English language learners, or are special education students;
Requires any of the $25 million that is not actually distributed as grants during the school budget year due to some eligible applicants not applying for grants or applying for grants in amounts that are less than the amount that the distribution formula would otherwise provide to be transferred back to the assistance fund;

6. READ Act Bill Number: SB19-199 Financial Impact: Programmatic Impact:
FY20: Changes distribution by reducing per-pupil allocation and increasing early literary grant funding
PPA reduction of approximately 10-20% relative to the amount this year
Additional requirements to access PPA
Programmatic Impact:
New reporting and K-3 PD requirements
Schools would retain the right to seek a waiver.
Current Status: House Passed Second Reading
Additional requirements to access PPA:
Requiring a local education provider to provide information and meet certain requirements in order to receive the money;
Authorizing the department to monitor and, if necessary, audit the use of the money throughout the budget year;
Expanding the allowable uses of the per-pupil intervention money to include purchasing core reading instructional programs and purchasing technology, including software, to assist in assessing and monitoring student progress; and
Capping the amount of per-pupil intervention money that a local education provider may retain from year to year.

7. Comprehensive Human Sexuality Education
Bill Number: HB
Financial Impact: none
Programmatic Impact: Clarifies content requirements for public schools that offer comprehensive human sexuality education
Current Status: Senate second reading

8. Accountability
Bill Number: SB19-204
Financial Impact: Grant money available.
Programmatic Impact:
Creates grant program for LEP to adopt local accountability systems to supplement the state accountability system.
Intended to create more room for innovation, research and development while at the same time retaining rigor and high standards.
Current Status: House second reading

9. Early College/Concurrent Enrollment
Bill Number: SB19-176
Financial Impact:
Creates the Grant Program in CDE for partnerships between LEPs and IHE’s that begin to offer or expand concurrent enrollment opportunities, beginning in with the school year.
The bill increases costs to provide concurrent enrollment opportunities
Programmatic Impact:
Beginning in FY 20-21, each high school in the state would have to provide the opportunity for concurrent enrollment to its students.
Important Amendment: Definition of early college students and revisions to attendance provisions.
Current Status: House appropriation
Grant: • assist teachers with the costs of obtaining a graduate degree that allows the teacher to teach a postsecondary course; • cover the cost of books, supplies, fees, and transportation; • purchase technology to share data and streamline the enrollment process; or • provide services, support, and coordination resources for LEPs and institutions.
Cost requirements:
, and modify existing concurrent enrollment agreements and notification procedures to align with the bill's requirements.

10. Full Day Kindergarten Bill Number: HB19-1262 Financial Impact:
full-day kindergarten = 1.0 FPC
Half-day kindergarten = 0.58 FPC
Charging fees for full day KG prohibited
CPP/ECARE no longer used for FDK
Programmatic Impact:
If a charter school seeks to expand an existing half-day kindergarten educational program to full day, it must notify the charter authorizer and amend the charter contract
Current Status: On the way to Gov’s Desk

11. Finance Update

12. PPR Update Average of 4% increase in PPR
Includes ~$102M buydown in Budget Stablization Factor
Funded primarily from “local share” – increases in assessed valuations
Separate from increases related to increased FPC from Full Day Kindergarten

13. Rural Funding $20M in FY20 Large Rural 55%, Small Rural 45%
down 33% from $30M in FY19
Large Rural 55%, Small Rural 45%
Requires reporting to CDE on how money is used
Assume PPA: small rural – goes down to $240 PP, Large rural goes down to $100 PP

14. SPED Categoricals
Increases the amount of tier B funding in ECEA by $22M statewide
Per pupil allocation impacts yet to be determined

15. PERA Rate Increases Employee: Employer:
FY19: increase by 0.75% (total 8.75%)
FY20: increase by 0.75% (total 9.5%)
FY21: increase by 0.5% (total 10%)
Employer:
FY19: increase by 0.25% (total 20.4%)

16. SPED Reserve
Implemented to assist schools in ensuring they have funding available for severe needs students
CSI staff will no longer be funded out of ECEA
additional funds will be passed through to schools through per pupil allocation
Assistance fund will still be available

17. SPED Reserve - MOU
MOU created to establish SPED reserve as an assigned fund balance by FY20 year end
If a school does not agree to the SPED reserve requirement:
It will be reflected in the CARS report, and likely be a point of consideration should the school submit an emergency assistance request for SPED needs

18. SPED Reserve - Budget Effective FY 2019-20
FY Adopted budget should include an assigned fund balance titled SPED Reserve in your detailed budget and CDE uniform budget summary
The amount of the FY20 budgeted SPED reserve requirement will be:
1% of the October 2018 actual funded pupil count multiplied by $10,000, not to exceed $90,000

19. SPED Reserve - Actual
The amount of the FY20 actual SPED reserve requirement will be:
1% of the October 2019 actual funded pupil count multiplied by $10,000, not to exceed $90,000
It is expected that in years subsequent to FY20, if the SPED reserve is used for unexpected high needs supports, it will be replenished by the end of the following fiscal year

20. Assistance Fund Limit
CSI Board considering increasing the amount of funds in the assistance fund
Requires school feedback and board resolution
Benefit: Additional funds available for FY20 assistance request
Cost: Comes from the FY19 rebate to schools

21. Questions?