Leanne Emm, Associate Commissioner, Public School FinanceScott Newell, Director, Capital Constructi on

League of Charter SchoolsPolicy & Facility Summit

October 6, 2014

BEST Program

Requirement to include remaining bond capacity and unreserved funds into the school district match calculations

Requirement that each year’s grant funds are appropriated

Requirement that Division staff perform outreach to any school in an area the Governor has declared a natural disaster

2014 BEST Legislative Changes

The Division anticipates approximately $35-45 million available for grants in the coming year

Grants are available for any school capital improvement project with a focus on health, safety, security, overcrowding, technology and others

Contact Division staff to get started on next year’s BEST applicationhttp://www.cde.state.co.us/cdefinance/capconstbest

BEST Program

Building Excellent Schools Today:BEST Program Timeline

Jan. – Feb. Application for

financial assistance is

open to applicants Mar. - April

Division Staff reviews

applications & summarizes them

in a Summary Book for the

CCAB

April - May

CCAB reviews Summary Book

End of May

CCAB discusses each project and

makes recommendations

to the State Board for award

June

State Board Meeting to

approve CCAB recommendations

July

Capital Development Committee Meeting to

approve State Board

recommendations

Oct. 27 th Charter School Letter of Intent Due

Performance audit by Office of State Auditor Recommendations made for improvements to program

All recommendations have been implemented except for two items needing funding to implement

Budget request for 2015-16 One-time costs - reconfigure and adjust the current assessment

database - $2.7MOngoing cost - update the statewide assessment and keep the data

current In-house assessment team - $580,000One time costs - training - $100,000

BEST Program – 2015-16

• The charter school capital construction grant is a per pupil allocation separate from the BEST grant.

• Each year the legislature provides an appropriation for Charter School and Institute Charter School Capital Construction. This funding can be used by the Charter School or Institute Charter School to pay for school construction, renovation, financing, purchasing or leasing of facilities.

• HB14-1292 - Student Success Act added to the grant 12.5% of the annual excise tax revenues from marijuana

• The purpose of this funding is to promote a safe and healthy learning environment for all Colorado students.

Charter School Capital Construction Grant

To be eligible for charter school capital construction funds a charter school must:• HAVE capital construction needs;• IF the school is located in a district owned facility with construction needs;• IF the school is located in a State owned facility, and paying rent, the school

is eligible.• IF the school is located in a State owned facility, and not paying rent, the

school is not eligible. • ON-LINE pupils are not eligible.

• Funds are distributed monthly to the charter school authorizer and then the authorizer is required to distribute the funds to each charter school.

Charter School Capital Construction Grant Program

• The annually appropriated amount is divided by the statewide total qualifying FTE as reported in the October count to determine the per pupil distribution.• Must meet eligibility requirements

Note: These figures exclude the excise tax appropriation

Charter School Capital Construction Grant Program

Fiscal Year Appropriation Estimated Amount Per Pupil

2013-14 $7,000,000 $94.90

2014-15 $13,500,000 $167.00

2015-16 $20,000,000 $225.00

NEW for FY14-15 • The grant will also receive 12.5% of the total excise tax on

marijuana

Example• If total excise revenues for the year are $10 million CSCC would receive $1.25

million equaling approximately $15 per eligible FTE

• If total excise revenues for the year are $40 million CSCC would receive $5 million equaling approximately $60 per eligible FTE

Charter School Capital Construction Grant Program

2014 Legislative Session & Discussion of Funding

Levels

Provided funding to fund growth and inflation plus $110 million buy down of negative factor

Provides a starting point for 2015-16 that states negative factor will not increase

Added 5,000 preschool slotsMinimum per pupil funding is available to all charter schoolsRepeals and reenacts English Language Proficiency Act

Additional $27 million; students funded for 5 yearsAdditional funding for BOCES Increases READ Act funding

2014 Legislative SessionHB14-1298 –School Finance Act

2012-13 REVISED Budget RequestTotal Program Funding - School Finance Act$5,184.0Billion

State General Fund, $3,183.97 , 54%

Other State Funds, $769.36 , 13%

Property Tax, $1,844.57 , 31%

Specific Ownership, $135.44 , 2%

2014-15 Total Program Funding - School Finance Act

$5.933 Billion

in millions

Estimated Change Total

Pupil Growth* 14,305 845,136

At-Risk Growth 4,276 309,537

Inflation Estimate 2.8% NA

Base Per Pupil Funding $166.72 $6,121.00

AssumptionsFY2014-15 Final Budget

*Includes 5,000 additional Preschool Slots

2013-14Actual

2014-15Final Budget Change

Total Program prior to Negative Factor(Growth & Inflation)

$6,531,213,075 $6,827,646,456 $296,433,381

Negative Factor (1,004,279,325) (894,302,068) (109,977,257)

Revised Total Program $5,526,933,750 $5,933,344,388 $406,410,638

Negative Factor Percentage -15.42% -13.15% 2.27%

Average Per Pupil Funding $6,652.30 $7,020.58 $368.28

AssumptionsFY2014-15 Final Budget

The gaps in the bars represents the negative factor. For 2014-15 it is 13.15% or $894 million.

State of ColoradoTotal Program Funding

2008-09Actual

2009-10 Actual

2010-11 Actual

2011-12 Actual

2012-13 Actual

2013-14 Actual

2014-15FinalBudget

Total Pro-gram Prior to Leg-islative Ac-tions

5354796950.12

5717292422.82

5822311211.91

6006480948.51

6309364346.32

6531213075.4

6827646455.931

Total Pro-gram Less Rescis-sions/Leg-islative Ac-tions

5347325784.05

5586087038.73

5439748515.97

5232445846.92

5297963175.74999

5526933749.65

5933344388.021

$500.0

$1,500.0

$2,500.0

$3,500.0

$4,500.0

$5,500.0

$6,500.0

State of ColoradoTotal Program Funding

in millionsGaps represent rescissions and leg-islative actions.

Gap represents negative factor of 13.15% or $894

million

Increase of $347 million between 2009-10 and 2014-15

Similar to Total Program, the gaps in the bars represents the effect of the negative factor.

For 2014-15, the effect is $1,058 in the statewide average per pupil funding.

State of ColoradoAverage Per Pupil Funding

2008-09Actual

2009-10 Actual

2010-11 Actual

2011-12 Actual

2012-13 Actual

2013-14Actual

2014-15FinalBudget

Average Per Pupil Funding Before Legisla-tive Ac-tions

6881.81357522936

7241.69353334771

7290.57812636554

7432.48678136726

7716.51 7861.06 8078.75

Actual Average Per Pupil Funding

6872.21187182917

7075.50487073662

6813.27467087429

6474.68707964523

6479.54200125067

6652.29841609127

7020.57939553042

$500

$1,500

$2,500

$3,500

$4,500

$5,500

$6,500

$7,500

State of ColoradoAverage Per Pupil Funding

Gaps represent rescis-sions and legislative ac-tions.

Gaps represent rescissions and legislative actions.

In conjunction with HB14-1298 reduces negative factor by $110M

Charter SchoolsAutomatic waivers, contracts & applicationsAmount of funds for charter school facilities increased from $7M to

$13M for 2014-15, then $20M each year afterAdditional 12.5% of marijuana excise tax to charter school facilitiesDebt reserve fund

Financial Transparency Report on additional local revenues distributed to schools READ Act increased funding

With HB14-1298, total increase is $18M for total of $34M

2014 Legislative SessionHB14-1292 –Student Success

Act

Financial Policies and Procedures Advisory Committee (FPP) makes recommendation to the State Board regarding the reporting of revenues

Department issues RFP for creation of web view that reports expenditures for school sites, districts, CSI and BOCES that ensures clarity and comparabilityDistricts post information on their websiteContractor will compile all district information into one viewData is not submitted by CDE to contractor In place by July 1, 2017 for FY2015-16 data$3M appropriated to do the work and establish contract

HB14-1292 –Student Success Act

Financial Transparency

When contracted website up in July 2017, the following reports are no longer necessary on district websites:Quarterly financial statementsCheck registers, credit, debit and purchase card statements Investment performance reports

Districts will be required to post the 2015-16 pipeline submissions to district website “actual expenditures, including but not limited to actual salary

expenditures and actual benefit expenditures reported by job category specified in the standard chart of accounts, at the local education provider level and at the school-site level.”

FPP will specify the date postings will be due

HB14-1292 –Student Success Act

Financial Transparency

By July 1, 2015, FPP will create a template that all districts must use to post all of the transparency information including site-level reports

Standardized web page that all districts must use – must be uniformly used by all districts

District website used for 2015-16 financial data

HB14-1292 –Student Success Act

Financial Transparency

2014-15 reporting requirement – additional local property tax revenue – mill levy overridesHow much is distributed to schools of the district

Department will compile the report Districts and charter schools review report prior to publication District or charter school may request an addendum

Overall distribution by district to charter schools Capital construction and facilities Funding for technology Other funding

Financial Policies and Procedures CommitteeReport information through Fund 90 – informational items

HB14-1292 –Student Success Act

Reporting of Local Revenues

Looking Ahead – 2015-16

HB14-1298 sets starting point for 2015-16 budget

States that negative factor will not increase from 2014-15 levels

Fund growth and inflation, no change in negative factor

Governor can propose adjustments

General Assembly will set final budget

HB14-1298 Moving Forward

November, 2014 Governor Submits Budget Request for 2015-16 THIS IS ONLY A PROPOSAL!

Late November/December 2014

Joint Budget Committee Hearings with DepartmentThe JBC hears about the 2015-16 Budget Request from the Department and seeks any information

January 2015 Governor Submits Supplemental Budget Request for 2014-15 Adjusts the Current Year Budget for actual Pupil Counts, AVs, etc.

Governor Submits Budget Amendments for next budget yearRevised estimates for next year’s students, AVs, etc based on actual

Spring 2015 JBC Develops State Budget – Figure Setting & Long Bill – pass by GAHB14-1298 sets starting point – no change in negative factor

Spring 2015 School Finance Bill Introduced and passedAdjusts the Long Bill numbers

2015 Legislative Session

Leanne EmmEmm_L@cde.state.co.us

303-866-6202

Scott NewellNewell_S@cde.state.co.us

303-866-6717

Contact Information