school finance in colorado new board member training

New Board Member Training

CASB Convention 2017

11/30/2017

1547 Gaylord Street | Denver, CO 80206

303-860-9136 cosfp.org @COSFP 1

School Finance in Colorado

New Board Member TrainingCASB Convention 2017

Glenn Gustafson, Colorado Springs D-11

Deputy Superintendent/Chief Financial Officer

Tracie Rainey, Colorado School Finance Project

Executive Director

What Makes Colorado, Colorado?

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Quick History of School Funding

• Requirement for statehood

• Colorado Constitution

– Thorough and uniform

– 3 months

• Governance Structure

• State vs Local

– Why this is important

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Role of the Board of Education

• Financial Accountability

– budget, audit, debt & elections

• Personnel Hiring

• Salary Schedule/Compensation Systems

• Establishes Graduation Requirements

• Adoption of Curriculum

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• 1981: Gallagher – statewide, voters passed

• 1992: TABOR – statewide, voters passed

• 1994: School Finance Act (SFA) 1994 –

Legislature

• 2000: Amendment 23 – statewide, voters

passed

• 2005: Ref C – statewide, voters passed

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Colorado’s Tax System (1 of 2)



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Colorado’s Tax System (2 of 2)

• 2008: Mill Levy Stabilization (Mesa County) -

courts

• 2010 – present: Budget Stabilization Factor /

Negative Factor – Legislature

– Created during Great Recession as a way to

balance the state budget

– Currently $833M 2017-18

– Cumulative loss to school districts $6B

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Breakout 1:

Salaries

15 minutes

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Mill Levies

• Minimum MLO – 25% (30% for small districts)

• Governing Documents

• Charter School Allocations

• Allowable for Capital or Operating

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Mill Levies - Other• Underwood Amendment

– 3 years & 10 Mills Maximum

• Special Building & Technology Fund (0 districts)

– Limited to purchase and install of instructional &

information technology

• Full Day Kindergarten Fund (3 districts)

– For excess Full-Day Kindergarten costs

• Transportation Fund (9 districts)

– For excess transportation costs

• Supplemental:

– Capital Construction

– New & Existing Technology

– Maintenance Needs11/30/2017 11

Breakout 2:

Tax Increases

15 minutes

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Financial Transparency Website

• 3 Districts – how to compare?

• District

– Who owns cost for different programs? People?

Supports?

– The district? A department? All schools? Some

schools?

• How to communicate with communities in

your district?

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Financial Transparency Website

• Why schools have different amounts of dollars

allocated

• How does your district support

– Students with different needs?

– Different types of programs your district offers?

• How to communicate with communities in

your district?

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Breakout 3:

CDE Financial

Transparency Website

15 minutes

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Colorado’s School Finance Act

• Designed by Legislature in 1994 - 23 years ago

• 40 mills per district

• 50/50 split between district and state

• Equalization Formula – concern about tax-

payer equity

• Educational Goal: Every child had access to

education

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Principles of School Finance System

• Equalization Formula

– Every district starts with the same amount

– Then adjustments are made based upon student

and district characteristics that are out of the

control.

• School Finance System & Tax System should

mirror same principles of:

Adequacy - Equity - Stability - Adaptability

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Categorical FundingCategorical FundingCategorical FundingCategorical Funding

• English Language Proficiency Act (ELPA)

• Gifted & Talented

• Small Attendance Centers

• Special Education (ECEA)

• Transportation

• Vocational Education

Total Estimated Categoricals = $85,035

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Balance

Adequate

Adaptable

Equitable

Sustainable

Principles: School Finance System & Tax System

What has been tried?

• An equity challenge to the courts in the early

1990’s - Lujan

• A facilities challenge to the courts in the late

1990’s – Giardino

• An adequacy challenge to the courts in the

2000’s – Lobato

• Two statewide ballot initiatives

• Three legislative interim committees on school

finance (2005, 2009, 2017 & 18)

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What might need to be tried?

• K-12 creating a positive narrative, with 178

local communities, all supporting a new

school finance act, additional dollars, and

distributing in a more equitable manner.

• This has never been tried, K-12 has always

been asked to be a passenger on a train,

never the conductor.

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Questions & Concerns

• Today

• Later – contact us:

• Glenn Gustafson: [email protected]

• Tracie Rainey: [email protected]

303-860-9136 @COSFP cosfp.org

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