leanne emm, associate commissioner [email protected][email protected] – 303-866-6202...
TRANSCRIPT
Leanne Emm, Associate [email protected] – 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 [email protected] Associate Commissioner
Jennifer Okes 303-866-2996 [email protected] School Finance Director
Mary Lynn Christel 303-866-6818 [email protected] Public School Finance
Kirk Weber 303-866-6610 [email protected]
Technical Assistance – Financial Reporting; Budgeting; Accounting
Paul Reynolds 303-866-6137 [email protected] Fiscal Analyst - Financial Reporting; Budgeting; Accounting
David Schneiderman 303-866-6689 [email protected] Grants Fiscal Supervisor
Scott Newell 303-866-6717 [email protected] BEST Director
Jane Brand 303-866-6934 [email protected] School Nutrition Director
Primary Contacts