leanne emm, associate commissioner emm_l@cde.state.co.usemm_l@cde.state.co.us – 303-866-6202...

Leanne Emm, Associate CommissionerEmm_l@cde.state.co.us – 303-866-6202

School Finance Update

League of Charter SchoolsAnnual Finance Seminar

September 2015

Total Program Funding

2015 Legislative Session & Funding Levels

Financial Reporting & Transparency

Agenda

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

Total Program Funding Formula

2014-15 Base Funding - $6,121.00

Increase of $166.72 Inflation of 2.8%

2015-16 Base Funding - $6,292.39

Increase of $171.39 Inflation of 2.8%

Base Per Pupil Funding

Base per pupil funding is adjusted by factors Cost of Living Personnel & Non-personnel costs Size of district

Determine At-Risk Funding, On-line and ASCENT Funding

Once Total Program is determined, the negative factor is applied 2015-16 – 12.13%

Formula Per Pupil Funding - Factors

2015 Legislative Session & Discussion of Funding

Levels

Provided funding to fund growth and inflation plus $25 million buy down of negative factor

Provides a starting point for 2016-17 that states negative factor amount will not increase from 2015-16

Minimum state aid funding permanently removed$5 million additional at-risk per pupil funding – estimated at

approximately $16 per pupilLegislative declaration (intention):

If the actual local share higher than estimates, then the state share of total program will not decrease.

Through the supplemental appropriation process.

2015 Legislative SessionSB15-267 –School Finance Act

Estimated Change Total

Pupil Growth* 10,844 855,391

At-Risk Growth 448 309,985

Inflation Estimate 2.8% NA

Base Per Pupil Funding $171.39 $6,292.39

AssumptionsFY2015-16 Final Budget

*Legislative Council provides estimates

2014-15Actual

2015-16Final Budget Change

Total Program prior to Negative Factor(Growth & Inflation)

$6,813,620,535 $7,094,740,921 $281,120,386

Negative Factor (880,176,146) (855,176,146) 25,000,000

Revised Total Program $5,933,444,389 $6,239,564,775 $306,120,386

Negative Factor Percentage -12.97% -12.13% .84%

Average Per Pupil Funding $7,025.60 $7,294.41 $268.81

AssumptionsFY2015-16 Final Budget

2014-15Actual

2015-16 Final Appropriation Change

State Share $3,950,612,482 $4,113,321,147 $162,708,665

Local Property Tax 1,837,512,870 1,976,565,020 139,052,150

Specific Ownership Tax 145,319,037 149,678,608 4,359,571

Total $5,933,444,389 $6,239,564,775 $306,120,386

Compare FY2014-15 Final to FY2015-16 Appropriation

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

State General Fund, $3,392.84 , 54%

Other State Funds, $720.48, 12%

Property Tax, $1,976.57, 32%

Specific Ownership, $149.68, 2%

2015-16Total Program Funding - School Finance Act

$6.24 Billion

in millions

Odd Years – reassessment year for counties2015 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

Property Tax & Assessed Values

Total Program - mill levy set to generate local shareCapped at 27 mills. Cannot go up from prior year.

Bond Redemption – mill levy set to generate funds to pay off debt (voter approved) This levy can potentially float up and down depending on the AVs

Voter approved overrides – mill levy approved by voters to provide funding for district Might be a certain dollar amount or a certain mill

Abatements – mill levy to recapture property tax refunds or cancellations based on revaluationsWill change from year to year

Mill Levies

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 (SOT)

Illustration of Two Districts

State Share; 96%

Local Share; 4%

District A

State Share; 8%

Local Share; 92%

District B

Legislative declaration (intention): If the actual local share higher than estimates, then the state share

of total program will not decrease.Statewide – look at assessed values and the local shareWill AVs increase over the estimates?

This may increase the local share. Consider SOT also.What will happen with pupil counts?

If it is higher than estimated, then the whole pie needs to grow.Will increases in local share cover any changes in pupil counts? Intent: the state provides the same level of funding - $4.1B

Legislative decision that will happen through the supplemental appropriation process.

SB15-267 – Legislative Intent

2008-09Actual

2009-10 Actual

2010-11 Actual

2011-12 Actual

2012-13 Actual

2013-14 Actual

2014-15 Actual

2015-16Final Bud-get

Total Program Prior to Leg-islative Actions

5354796950.12

5717292422.82

5822311211.91

6006480948.51

6309364346.32

6531213075.4

6813620534.737

7094740920.59

Total Program Less Rescis-sions/Legisla-tive Ac-tions

5347325784.05

5586087038.73

5439748515.97

5232445846.92

5297963175.75

5526933749.65

5933444388.927

6239564774.78

$500.0

$1,500.0

$2,500.0

$3,500.0

$4,500.0

$5,500.0

$6,500.0

$7,500.0

State of ColoradoTotal Program Funding

in millionsGaps represent rescissions and legislative actions. Gap represents negative

factor of 12.13% or $855 millionChange of $653

million between 2009-10 and 2015-16

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

For 2015-16, the effect is $1,000 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

FY2014-15 Actual

FY2015-16Final Bud-get

Average Per Pupil Funding Before Leg-islative Actions

6881.81357522936

7241.69353334771

7290.57812636554

7432.48678136726

7716.51 7861.06 8067.79 8294.15

Actual Average Per Pupil Funding

6872.21187182917

7075.50487073662

6813.27467087429

6474.68707964523

6479.54200125067

6652.29841609127

7025.59905403659

7294.40504048151

$500

$1,500

$2,500

$3,500

$4,500

$5,500

$6,500

$7,500

$8,500

State of ColoradoAverage Per Pupil Funding

Gaps represent rescissions and legislative actions.Gaps represent rescissions and legislative actions.

November, 2015 Governor Submits Budget Request for 2016-17THIS IS ONLY A PROPOSAL!

Late November/December 2015

Joint Budget Committee Hearings with DepartmentThe JBC hears about the 2016-17 Budget Request from the Department and seeks any information

January 2016 Governor Submits Supplemental Budget Request for 2015-16Adjusts 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 2016 JBC Develops State Budget – Figure Setting & Long Bill – pass by GASB15-267 sets starting point – no change in negative factor

Spring 2016 School Finance Bill Introduced and passedAdjusts the Long Bill numbers

2016 Legislative Session

Financial Reporting & Transparency

2014-15 reporting requirement per HB14-1292– 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

Data Pipeline: FinancialNew Reporting Requirement

Report required information through Fund 90 – informational items Total Amount Authorized – Voter Approved Overrides

The total amount that was authorized through elections Total Amount Collected – Voter Approved Overrides

The total amount that was actually collected by the district for overrides (this might be different than the authorized amount)

Amount Distributed to Charter Schools – Voter Approved Overrides Does your district pass along override funding directly to charter schools?

Amount Distributed to Non-Charter Schools – Voter Approved Overrides Does your district pass along override funding directly to district schools?

Amount Retained by District – Voter Approved Overrides Any amounts that are not directly passed along to the schools within the district.

Data Pipeline: Financial New Reporting Requirement

Beginning July 1, 2015

Local Education Providers (LEP: School Districts, BOCES, Charter Schools and the Charter School Institute)must begin following the revised financial transparencyrequirements set forth in HB14-1292 and HB15-1321

Financial Transparency: HB 14-1292 and HB15-1321

LEP homepages – two options Begin using the Financial Transparency Icon on your website homepage as a link to

the July 1, 2015 LEP Financial Transparency Webpage

or Ensure the words “Financial Transparency” are clearly visible on your website

homepage – as a link to the required July 1, 2015 LEP Financial Transparency Webpage

On your website homepage, the Financial Transparency icon, or the words “Financial Transparency” must link to your Financial Transparency Webpage – which follows the Standard Webpage Template

July 1, 2015

I

Website Homepage Example with Icon

Website Homepage Example with Icon

Website Homepage Example with words “Financial Transparency”

Website Homepage Example with words “Financial Transparency”

Web ResourcesThe Financial Transparency Icon, the required website templates and other Financial Transparency information is on the CDE website:http://www.cde.state.co.us/cdefinance/sfFinancialTransparency

Financial Transparency Basic Considerations Guidehttp://www.cde.state.co.us/cdefinance/financialtransparencyguide

Financial Transparency

State Board approved the Financial Policies and Procedures Advisory Committee (FPP) recommendation regarding the reporting of revenuesRecommendation was presented Wednesday, September 9No change to chart of accounts – school level revenue can already

be reported through existing structuresNot recommending that “district wide revenues” are allocated

down to school level.

HB14-1292 –FPP Recommendation on Revenue

Name Phone Email Primary Duties

Leanne Emm 303-866-6202 Emm_l@cde.state.co.us Associate Commissioner

Jennifer Okes 303-866-2996 Okes_j@cde.state.co.us School Finance Director

Mary Lynn Christel 303-866-6818 Christel_m@cde.state.co.us Public School Finance

Kirk Weber 303-866-6610 Weber_k@cde.state.co.us

Technical Assistance – Financial Reporting; Budgeting; Accounting

Paul Reynolds 303-866-6137 Reynolds_p@cde.state.co.us Fiscal Analyst - Financial Reporting; Budgeting; Accounting

David Schneiderman 303-866-6689 Schneiderman_d@cde.state.co.us Grants Fiscal Supervisor

Scott Newell 303-866-6717 Newell_s@cde.state.co.us BEST Director

Jane Brand 303-866-6934 Brand_j@cde.state.co.us School Nutrition Director

Primary Contacts