Hitting the Base Glenn McClain, Platte Valley SD Superintendent - - PDF document

Colorado School Finance Project 2/17/2017 1

Hitting the Base

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Glenn McClain, Platte Valley SD Superintendent & Glenn Gustafson, Colorado Springs D-11 Deputy Superintendent/Chief Finance Officer

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Amendment 23 Language

Shall there be an amendment to the Colorado Constitution concerning increased funding for preschool through twelfth-grade public education, and, in connection therewith, requiring the statewide base per pupil funding for public education and funding for specifically defined categorical programs to grow annually by at least the rate of inflation plus one percentage point for fiscal years 2001-02 through 2010-11 and annually by at least the rate of inflation for fiscal years thereafter;

Colorado School Finance Project 2/17/2017 2

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• Total Program Calculation

– Per-Pupil Revenue x Pupil Count

• Total Program Components

– Property Taxes – Specific Ownership Taxes (Yeah Hail!) – State Equalization

Basic School Finance Total Program Funding

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• Base Funding

$6,367.90

• Cost of Living Factor

1.205

• District Size Factor

1.0297

• Personnel Cost Factor

90.50%

• Non-personnel Costs

9.50% Subtotal $7,772.73

• At Risk Factor

512.32

• Negative Factor
• 953.96

PPR $7,331.12

Basic School Finance Per-Pupil Revenue (FY 16-17)

Colorado School Finance Project 2/17/2017 3

30% 40% 50% 60% 70% 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

State Share

General Fund and State Education Fund

Local Share

Mostly Property Taxes

66% 34% 43% 57%

TABOR

• Am. 23

Mill Levy Freeze

Relative State and Local Shares of School Finance, 1983 to FY 2015-16

Note: Prior to 1993, K-12 funding was done on a calendar year basis.

What the General Fund Pays For

FY 2015-16

K-12 Education 37% Higher Education 9% Corrections 8% Judicial 5% Health Care 26% Human Services 9% Other 6% FY 2015-16 General Fund Operating Budget $9.6 billion

State Share

Colorado School Finance Project 2/17/2017 4

9 Sources: Colorado Department of Education, U.S. Census Bureau, & Bureau of Labor Statistics, and JBC Staff.

60 110 160 210 260 310 360 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 Index FY 01 = 100

Medicaid Caseload State Share School Finance Higher Education Enrollment Inflation CO Population K-12 Enrollment General Fund Operating Appropriations General Fund Revenue

Colorado State Budget Caseload Growth & the General Fund Budget

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Negative Factor

• - 2016-17: $830M
• - 2015-16: $830M

– 2014-15: $880M – 2013-14: $1.004B – 2012-13: $1.001B – 2011-12: $774M – 2010-11: $381M

• What does this mean for school districts?
• State leaders warn of increasing negative factor

Colorado Negative Factor History

School Finance Scenarios Going Forward

$5 $6 $7 $8 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 Billions of Dollars

Current funding level Current law: constant $830.7M negative factor Eliminate negative factor JBC Staff Recommendation $40.8M one-time increase in negative factor

Total Program Funding Projections LCS December 2015 Revenue Forecast

State Share Local Share