Second Regular Session Seventy-third General Assembly STATE OF COLORADO INTRODUCED LLS NO. 22-0841.01 Jacob Baus x2173 HOUSE BILL 22-1186 House Committees Senate Committees Appropriations A BILL FOR AN ACT C ONCERNING ADJUSTMENTS TO SCHOOL FUNDING FOR THE 2021-22101 BUDGET YEAR, AND, IN CONNECTION THEREWITH , MAKING AND102 REDUCING AN APPROPRIATION .103 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov/ .) Joint Budget Committee. The general assembly recognizes that the actual funded pupil count and the at-risk pupil count for the 2021-22 budget year are lower than expected when the appropriation amount for the state share of total program funding was established during the 2021 legislative session, resulting in a decrease in total program funding for the HOUSE SPONSORSHIP Herod and McCluskie, Ransom SENATE SPONSORSHIP Hansen and Moreno, Rankin Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute. 2021-22 budget year. In addition, local property tax revenue and specific ownership tax revenue are higher than anticipated, resulting in an increase in the local share of total program funding. The bill declares the general assembly's intent to maintain total program funding after application of the budget stabilization factor at the amount of the original appropriation for the 2021-22 budget year. The bill appropriates $91,433,760 in cash funds from the state education fund to distribute to school districts and institute charter schools that received lower than anticipated funding for at-risk pupils for the 2021-22 budget year. The appropriation is additional funding and does not affect a district's or institute charter school's total program. The bill decreases the appropriation for the state share of total program funding by $139,565,749 in cash funds from the state education fund and adjusts the 2021-22 state fiscal year long bill accordingly. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. Legislative declaration. (1) The general assembly2 finds and declares that:3 (a) The actual funded pupil count and at-risk pupil count for the4 2021-22 budget year are lower than anticipated when the appropriation5 was established in the 2021 legislative session for total program funding6 for the 2021-22 budget year. As a result, total program funding, before7 application of the budget stabilization factor, is $67,976,234 lower than8 anticipated when appropriations were established for the 2021 legislative9 session.10 (b) Based on actual local property tax revenue and specific11 ownership tax revenue available to school districts for the 2021-22 budget12 year, the local share of total program funding is $139,565,749 higher than13 anticipated when appropriations were established in the 2021 legislative14 session; and15 (c) It is the general assembly's intent to maintain total program16 funding after the application of the budget stabilization factor at the dollar17 HB22-1186-2- amount of the original appropriation for the 2021-22 budget year.1 (2) In addition, the general assembly finds it necessary to2 distribute additional funding to school districts and institute charter3 schools for at-risk pupils due to the reduced identification of at-risk pupils4 resulting from the availability of universal free school meals.5 SECTION 2. In Colorado Revised Statutes, 22-54-104, amend6 (5)(g)(I)(L) as follows:7 22-54-104. District total program - definitions. (5) For8 purposes of the formulas used in this section:9 (g) (I) For the 2010-11 budget year and each budget year10 thereafter, the general assembly determines that stabilization of the state11 budget requires a reduction in the amount of the annual appropriation to12 fund the state's share of total program funding for all districts and the13 funding for institute charter schools. The department of education shall14 implement the reduction in total program funding through the application15 of a budget stabilization factor as provided in this subsection (5)(g)(I).16 For the 2010-11 budget year and each budget year thereafter, the17 department of education and the staff of the legislative council shall18 determine, based on budget projections, the amount of such reduction to19 ensure the following:20 (L) That, for the 2021-22 budget year, the sum of the total21 program funding for all districts, including the funding for institute22 charter schools, after application of the budget stabilization factor, is not23 less than seven billion nine hundred eighty-eight million five hundred24 twenty-seven thousand seven hundred eleven dollars ($7,988,527,711)25 SEVEN BILLION NINE HUNDRED EIGHTY -EIGHT MILLION SIX HUNDRED26 SEVENTY-FIVE THOUSAND FOUR HUNDRED THIRTY -FOUR DOLLARS27 HB22-1186 -3- ($7,988,675,434); except that the department of education and the staff1 of the legislative council shall make mid-year revisions to replace2 projections with actual figures, including but not limited to actual pupil3 enrollment, assessed valuations, and specific ownership tax revenue from4 the prior year, to determine any necessary changes in the amount of the5 reduction to maintain a total program funding amount for the applicable6 budget year that is consistent with this subsection (5)(g)(I)(L). For the7 2022-23 budget year, the difference between calculated statewide total8 program funding and actual statewide total program funding must not9 exceed the difference between calculated statewide total program funding10 and actual statewide total program funding for the 2021-22 budget year.11 SECTION 3. In Colorado Revised Statutes, add 22-54-144 as12 follows:13 22-54-144. Additional at-risk funding - 2021-22 budget year14 - legislative declaration - definition - repeal. (1) A S USED IN THIS15 SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES :16 (a) "D IRECT CERTIFIED PUPILS" MEANS PUPILS WHO ARE CERTIFIED17 AS ELIGIBLE FOR FREE MEALS BASED ON DOCUMENTATION OF BENEFIT18 RECEIPT OR CATEGORICAL ELIGIBILITY AS DESCRIBED IN 7 CFR 245.6, OR19 SUCCESSOR REGULATIONS.20 (b) "R ECALCULATED TOTAL PROGRAM FUNDING " MEANS TOTAL21 PROGRAM AFTER APPLICATION OF THE BUDGET STABILIZATION FACTOR FOR22 A DISTRICT OR FOR INSTITUTE CHARTER SCHOOLS FOR THE 2021-2223 BUDGET YEAR RECALCULATED USING THE DISTRICT 'S OR INSTITUTE24 CHARTER SCHOOLS' PERCENTAGE OF DIRECT CERTIFIED PUPILS FOR THE25 2019-20 BUDGET YEAR, AND USING THE DISTRICT'S OR INSTITUTE CHARTER26 SCHOOLS' RATIO OF FREE -LUNCH-ELIGIBLE PUPILS TO27 HB22-1186 -4- REDUCED-PRICE-LUNCH-ELIGIBLE PUPILS FOR THE 2019-20 BUDGET YEAR.1 (2) T HE DEPARTMENT SHALL DISTRIBUTE ADDITIONAL FUNDING TO2 DISTRICTS AND INSTITUTE CHARTER SCHOOLS TO OFFSET REDUCTIONS IN3 THE AMOUNT OF TOTAL PROGRAM FUNDING AFTER APPLICATION OF THE4 BUDGET STABILIZATION FACTOR CALCULATED FOR THE 2021-22 BUDGET5 YEAR AS A RESULT OF A DECREASE IN THE NUMBER OF APPLICATIONS6 SUBMITTED DURING THE 2021-22 BUDGET YEAR TO PARTICIPATE IN THE7 FEDERAL SCHOOL LUNCH PROGRAM CREATED IN THE "RICHARD B.8 R USSELL NATIONAL SCHOOL LUNCH ACT", 42 U.S.C. SEC. 1751 ET SEQ.9 T HE DEPARTMENT SHALL CALCULATE THE DISTRIBUTION AMOUNT FOR10 EACH DISTRICT AND FOR THE INSTITUTE CHARTER SCHOOLS BASED ON THE11 DIFFERENCE BETWEEN THE AMOUNT OF TOTAL PROGRAM FUNDING AFTER12 APPLICATION OF THE BUDGET STABILIZATION FACTOR THAT WAS13 ACTUALLY CALCULATED FOR THE DISTRICT OR INSTITUTE CHARTER14 SCHOOLS FOR THE 2021-22 BUDGET YEAR AND THE AMOUNT OF THE15 DISTRICT'S OR INSTITUTE CHARTER SCHOOLS ' RECALCULATED TOTAL16 PROGRAM FUNDING, AS DETERMINED BY THE DEPARTMENT . A DISTRICT IS,17 OR THE INSTITUTE CHARTER SCHOOLS ARE , ELIGIBLE TO RECEIVE A18 DISTRIBUTION PURSUANT TO THIS SECTION ONLY IF THE DISTRICT 'S OR19 INSTITUTE CHARTER SCHOOLS' RECALCULATED TOTAL PROGRAM FUNDING20 IS GREATER THAN THE AMOUNT OF TOTAL PROGRAM FUNDING AFTER21 APPLICATION OF THE BUDGET STABILIZATION FACTOR CALCULATED FOR22 THE DISTRICT OR INSTITUTE CHARTER SCHOOLS FOR THE 2021-22 BUDGET23 YEAR.24 (3) A NY DISTRIBUTION MADE PURSUANT TO THIS SECTION IS25 ADDITIONAL FUNDING AND DOES NOT AFFECT A DISTRICT 'S OR INSTITUTE26 CHARTER SCHOOL'S TOTAL PROGRAM FOR THE 2021-22 BUDGET YEAR.27 HB22-1186 -5- (4) (a) EACH DISTRICT THAT AUTHORIZES A CHARTER SCHOOL1 SHALL DISTRIBUTE TO THE CHARTER SCHOOL ONE HUNDRED PERCENT OF2 THE DISTRICT CHARTER SCHOOL'S PER-PUPIL SHARE OF THE DISTRIBUTION3 RECEIVED BY THE DISTRICT PURSUANT TO THIS SECTION . A DISTRICT4 CHARTER SCHOOL'S DISTRIBUTION IS DETERMINED BY DIVIDING THE5 AMOUNT OF THE DISTRIBUTION RECEIVED BY THE DISTRICT PURSUANT TO6 THIS SECTION BY THE DISTRICT'S AT-RISK PUPIL COUNT FOR THE 2021-227 BUDGET YEAR AND THEN MULTIPLYING THAT AMOUNT BY THE DISTRICT8 CHARTER SCHOOL'S AT-RISK PUPIL COUNT FOR THE 2021-22 BUDGET YEAR.9 (b) T HE DEPARTMENT SHALL DISTRIBUTE THE TOTAL AMOUNT10 CALCULATED FOR INSTITUTE CHARTER SCHOOLS PURSUANT TO THIS11 SECTION TO THE STATE CHARTER SCHOOL INSTITUTE , WHICH SHALL12 DISTRIBUTE TO EACH INSTITUTE CHARTER SCHOOL ONE HUNDRED PERCENT13 OF THE AMOUNT CALCULATED FOR THE INSTITUTE CHARTER SCHOOL14 PURSUANT TO THIS SECTION.15 (5) T HE GENERAL ASSEMBLY SHALL APPROPRIATE FOR THE16 2021-22 BUDGET YEAR THE AMOUNT NECESSARY TO FUND THE17 DISTRIBUTIONS TO DISTRICTS AND INSTITUTE CHARTER SCHOOLS18 DESCRIBED IN THIS SECTION.19 (6) T HE GENERAL ASSEMBLY DECLARES THAT , FOR PURPOSES OF20 SECTION 17 OF ARTICLE IX OF THE STATE CONSTITUTION, DISTRIBUTING21 ADDITIONAL FUNDING TO SCHOOL DISTRICTS AND INSTITUTE CHARTER22 SCHOOLS FOR AT-RISK PUPILS DUE TO REDUCED IDENTIFICATION OF23 AT-RISK PUPILS RESULTING FROM THE AVAILABILITY OF UNIVERSAL FREE24 SCHOOL MEALS IS AN IMPORTANT ELEMENT IN IMPLEMENTING25 ACCOUNTABLE PROGRAMS TO MEET STATE ACADEMIC STANDARDS , AND26 SCHOOL DISTRICTS AND INSTITUTE CHARTER SCHOOLS MAY THEREFORE27 HB22-1186 -6- RECEIVE FUNDING FROM THE STATE EDUCATION F UND CREATED IN SECTION1 17 (4) OF ARTICLE IX OF THE STATE CONSTITUTION.2 (7) T HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2023.3 HB22-1186 -7- APPROPRIATION FROM ITEM & SUBTOTAL TOTAL GENERAL FUND GENERAL FUND EXEMPT CASH FUNDS REAPPROPRIATED FUNDS FEDERAL FUNDS $$$$$ $ $ SECTION 4. Appropriation to the department of education for the fiscal year beginning July 1, 2021. In Session Laws of Colorado 2021, section 2 of chapter 504, (SB 1 21-205), amend Part III (2)(A) and footnote 7, as Part III (2)(A) footnote 7 is amended by Section 34 of chapter 222, (SB 21-268), as follows : 2 Section 2. Appropriation. 3 PART III 4 DEPARTMENT OF EDUCATION 5 6 (2) ASSISTANCE TO PUBLIC SCHOOLS 7 (A) Public School Finance 8 Administration 9 1,879,526 1,792,031 87,495 a 10(16.5 FTE) (0.9 FTE) Financial Transparency 11 System Maintenance 12 88,120 88,120 a 13(1.0 FTE) School Finance Audit 14 Payments 15 600,000 600,000 b HB22-1186 -8- APPROPRIATION FROM ITEM & SUBTOTAL TOTAL GENERAL FUND GENERAL FUND EXEMPT CASH FUNDS REAPPROPRIATED FUNDS FEDERAL FUNDS $$$$$ $ $ State Share of Districts' 1 Total Program Funding 6,7 2 4,342,793,552 2,696,820,934 865,284,199 c 780,688,419 d 3 4,203,227,803 641,122,670 d District Per Pupil 4 Reimbursements for 5 Juveniles Held in Jail 6 10,000 10,000 e At-risk Supplemental Aid 7 4,844,358 4,844,358 f At-risk Per Pupil 8 Additional Funding 9 5,000,000 5,000,000 f Additional Funding for 10 Rural Districts and Institute 11 Charter Schools 12 30,000,000 30,000,000 g 13 4,385,215,556 14 4,245,649,807 15 HB22-1186 -9- APPROPRIATION FROM ITEM & SUBTOTAL TOTAL GENERAL FUND GENERAL FUND EXEMPT CASH FUNDS REAPPROPRIATED FUNDS FEDERAL FUNDS $$$$$ $ $ a These amounts shall be from the State Education Fund created in Section 17 (4)(a) of Article IX of the State Constitution. Pur suant to Section 17 (3) of Article IX of the State 1 Constitution, appropriations from the State Education Fund are not subject to the limitation on fiscal year spending set forth in Section 20 of Article X of the State Constitution. 2 b This amount shall be from the State Public School Fund created in Section 22-54-114 (1), C.R.S. 3 c This amount shall be from the General Fund Exempt Account created in Section 24-77-103.6 (2), C.R.S. 4 d Of this amount, $587,390,325 $447,824,576 shall be from the State Education Fund created in Section 17 (4)(a) of Article IX of the State Constitution and $ 193,298,094 shall be from 5 the State Public School Fund created in Section 22-54-114 (1), C.R.S. Pursuant to Section 17 (3) of Article IX of the State Con stitution, appropriations from the State Education Fund 6 are not subject to the limitation on fiscal year spending set forth in Section 20 of Article X of the State Constitution. Of th e amount appropriated from the State Public School Fund, 7 $154,290,341 is estimated to be from State Public School Fund reserves, $30,360,235 is estimated to be from federal mineral leasing revenues transferred to the State Public School 8 Fund pursuant to Sections 22-54-114 (1) and 34-63-102, C.R.S., and $8,647,518 is estimated to be from interest and income earne d on the investment of money in the Public School 9 Fund that is credited to the State Public School Fund pursuant to Section 22-41-102 (3)(f), C.R.S. 10 e These amounts shall be from the State Education Fund created in Section 17 (4)(a) of Article IX of the State Constitution. Pur suant to Section 17 (3) of Article IX of the State 11 Constitution, appropriations from the State Education Fund are not subject to the limitation on fiscal year spending set forth in Section 20 of Article X of the State Constitution. 12 f These amounts shall be from the State Public School Fund created in Section 22-54-114 (1), C.R.S., from interest and income ea rned on the investment of money in the Public School 13 Fund that is credited to the State Public School Fund pursuant to Section 22-41-102 (3)(g), C.R.S. 14 g This amount shall be from the Rural Schools Cash Fund created in Section 22-54-142 (5), C.R.S. 15 HB22-1186 -10- APPROPRIATION FROM ITEM & SUBTOTAL TOTAL GENERAL FUND GENERAL FUND EXEMPT CASH FUNDS REAPPROPRIATED FUNDS FEDERAL FUNDS $$$$$ $ $ 1 TOTALS PART III 2 (EDUCATION) 3 $5,847,545,486 $2,921,618,823 $865,284,199 a $1,401,687,125 $38,200,295 b $620,755,044 c 4 $5,707,979,737 $1,262,121,376 5 a This amount shall be from the General Fund Exempt Account created in Section 24-77-103.6 (2), C.R.S. 6 b Of this amount, $20,100,000 contains an (I) notation. 7 c This amount contains an (I) notation. 8 FOOTNOTES -- The following statements are referenced to the numbered footnotes throughout section 2. 9 10 7 Department of Education, Assistance to Public Schools, Public School Finance, State Share of Districts' Total Program Funding -- Pursuant to Section 11 22-35-108 (2)(a), C.R.S., the purpose of this footnote is to specify what portion of this appropriation is intended to be avail able for the Accelerating Students 12 Through Concurrent Enrollment (ASCENT) Program for FY 2021-22. It is the General Assembly's intent that the Department of Education be authorized to 13 utilize up to $4,065,000 $4,097,500 of this appropriation to fund qualified students designated as ASCENT Program participants. This amount is calculat ed 14 based on an estimated 500 FTE participants funded at a rate of $8,130 $8,195 per FTE pursuant to Section 22-54-104 (4.7), C.R.S. 15 HB22-1186 -11- SECTION 5. Appropriation. For the 2021-22 state fiscal year,1 $91,433,760 is appropriated to the department of education. This2 appropriation is from the state education fund created in section 17 (4)(a)3 of article IX of the state constitution. To implement this act, the4 department may use this appropriation for additional funding provided5 pursuant to section 22-54-144 (2), C.R.S.6 SECTION 6. Safety clause. The general assembly hereby finds,7 determines, and declares that this act is necessary for the immediate8 preservation of the public peace, health, or safety.9 HB22-1186-12-