School Finance Mary Lynn Christel Public School Finance

School Finance Mary Lynn Christel Public School Finance and Operations Division Christel_m@cde. state. co. us – 303 -866 -6818 October 2015

Agenda § Pupil Count § Total Program Funding § Assessed Valuations and Mill Levies § Questions

Pupil Counts § Funding is based on annual October pupil count Pupils in grades 1 through 12 are counted as either full-time or parttime. Kindergarten, special education preschool and CPP/ECARE are counted as part-time. § Counts must be finalized by November 10. § Duplicate count process § November 13 – district documentation due to CDE Audit § November 20 – last date to resubmit data file

Funded Pupil Count § Funded Pupil Count = § Greater of K-12 FTE (not including online and ASCENT) or average of current year and up to four prior years K-12 FTE (not including online and ASCENT) § Plus Full Day Kindergarten Factor (kindergarten headcount x. 08) § Plus CPP/ECARE § Plus online § Plus ASCENT § Minimum funded pupil count is 50.

Total Program Funding Formula 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

Base Per Pupil Funding § 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%

Formula Per Pupil Funding Factors § Base per pupil funding is adjusted by factors § Cost of Living – § Reflects differences between districts for cost of housing, goods and services. § Study occurs every other year § Personnel & Non-personnel Factors § Formula in statute and based on district enrollment § Reflects cost of salaries and benefits for district personnel § Size Factor § Factors set in statute and based on district enrollment

At-Risk Funding § Determine At-Risk Funding § At-risk funding based on K-12 free lunch counts § Formula uses actual count or calculated grades 1 - 8 percentage § Concentration factor – applied to districts with at-risk percentage greater than statewide average. §

Online & ASCENT Funding § Online and ASCENT funding is calculated by multiplying the fixed per pupil funding amount times the online and/or ASCENT count. Total Program Funding equals = (funded pupil count x formula per pupil funding) + at-risk funding + online & ASCENT funding § Once Total Program is determined, the negative factor is applied § 2015 -16 – 12. 13%

Illustration of Total Program Funding Calculation Illustration Examples Funded Pupil Count 7, 715. 5 High PPR 65. 4 Base Funding (BF) $6, 292. 39 Cost of Living (CL) 1. 186 1. 175 1. 244 Personnel Costs (PL) Low PPR On-line PPR 63, 274. 0 88. 49% 80. 02% 90. 50% 1. 0297 2. 3379 1. 0297 $7, 545. 71 $16, 771. 03 $7, 910. 03 2, 431. 0 28. 0 6, 199. 0 "Base" At-Risk Funding 12% * Formula Per-pupil Funding $905 $2, 013 $949 "Population" At-Risk Funding district % > state % N/A N/A $2, 201, 234 $56, 351 $5, 884, 111 On-line Pupil Count N/A 2, 674. 5 Per-Pupil Funding N/A $7, 588 Total On-Line Funding N/A $20, 294, 106 Size (SZ) Formula Per-Pupil Funding [SZ*[(BF*CL*PL)+(BF*(1 -PL))] At-Risk Pupil Count Total At-Risk Funding (included in Total Per-Pupil Funding)

Total Program Funding (continued) Total Program Formula (Pre – Negative Factor) $60, 420, 134 $1, 153, 176 $505, 521, 914 Per-Pupil (Pre - Negative Factor) $7, 831. 01 $17, 632. 66 $7, 989. 41 $60, 762, 803 $515, 052 $498, 309, 325 $7, 875. 42 ($7, 372, 181. 89) ($139, 911. 64) ($61, 333, 567. 89) Total Program Formula Guarantee (Pre - Negative Factor) Minimum Per-Pupil Funding Guarantee (Pre - Negative Factor) Negative Factor -12. 13% Total Program Funding (Post - Negative Factor) $53, 390, 621 Total Program Per-Pupil Funding $6, 919. 92 (Post -Negative Factor) $1, 013, 264 $444, 188, 346 $15, 493. 34 $7, 020. 08

Specific Ownership Taxes (SOT) § 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 Calculation for Local Share § Reported by district through data pipeline § Adjusted by prior year mill levies. § Sample Calculation Total Program Specific Ownership Taxes Total SOT Reported by District Total Mills Override Mill Bond Mill Percentage Applied Net Mills 1, 626, 190. 99 Actual SOT applied to local share 46. 794 10. 179 9. 996 26. 619 0. 56885498 925, 066. 85

Property Tax & Assessed Values § Odd Years – reassessment year for counties § 2015 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 AV X. 027 mills = $270, 000 property tax

Illustration of Two Districts Local Share; 4% District A District B State Share; 8% State Share; 96% Local Share; 92%

2016 Legislative Session November, 2015 Governor Submits Budget Request for 2016 -17 THIS IS ONLY A PROPOSAL! Late Joint Budget Committee Hearings with Department November/December The JBC hears about the 2016 -17 Budget Request from the 2015 Department and seeks any information January 2016 Governor Submits Supplemental Budget Request for 2015 -16 Adjusts the Current Year Budget for actual Pupil Counts, AVs, etc. Governor Submits Budget Amendments for next budget year Revised estimates for next year’s students, AVs, etc based on actual Spring 2016 JBC Develops State Budget – Figure Setting & Long Bill – pass by GA SB 15 -267 sets starting point – no change in negative factor Spring 2016 School Finance Bill Introduced and passed Adjusts the Long Bill numbers

Website Resources All things Public School Finance are located on the CDE website: http: //www. cde. state. co. us/cdefinance § State Share Payment Reports and Calculation Worksheets can be found here: http: //www. cde. state. co. us/cdefinance/publicschoolfinanceactof 1994 fy 2015 -16