Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 22-1011.01 Julie Pelegrin x2700
SENATE BILL 22-202
Senate Committees House Committees
Education
A BILL FOR AN ACT
C
ONCERNING PROVIDING STATE MATCHING MONEY FOR PROPERTY101
TAX REVENUE COLLECTED BY SCHOOL DISTRICTS .102
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
.)
Beginning in the 2022-23 budget year, the bill directs the
department of education (department) to annually distribute to each
eligible school district and each eligible institute charter school an amount
of state money as a matching amount to the property tax revenue the
eligible district receives from mills levied for additional revenue (override
mills). To determine the amount, if any, of state matching money, the
SENATE SPONSORSHIP
Zenzinger and Rankin,
HOUSE SPONSORSHIP
McCluskie,
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. department must calculate for each district:
! The district's maximum number of override mills; and
! The number of override mills the district may be expected
to levy toward the district's maximum number of override
mills (override mill capacity), based on the district's median
household income.
If a district's override mill capacity is less than the maximum
number of override mills, the district is eligible to receive matching state
money. The department must calculate each eligible district's mill levy
match amount as provided in the bill. An institute charter school that is
located within an eligible district is eligible to receive a distribution of
state money equal to the eligible district's per pupil mill levy match
amount multiplied by the institute charter school's pupil enrollment. The
department must calculate and distribute in June of each budget year the
mill levy match amounts from the mill levy override match fund created
in the bill.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 22-54-107.9 as2
follows:3
22-54-107.9. Override mill levy match - calculation -4
distribution - fund created - definitions. (1) A
S USED IN THIS SECTION,5
UNLESS THE CONTEXT OTHERWISE REQUIRES :6
(a) "A
DDITIONAL MILL LEVY REVENUE PER PUPIL AMOUNT " MEANS7
THE AMOUNT OF AN ELIGIBLE DISTRICT'S ADDITIONAL MILL LEVY REVENUE,8
AS DEFINED IN SECTION 22-32-108.5, FOR A BUDGET YEAR, DIVIDED BY9
THE ELIGIBLE DISTRICT'S FUNDED PUPIL COUNT FOR THAT BUDGET YEAR .10
(b) "A
PPLICABLE BUDGET YEAR" MEANS THE BUDGET YEAR IN11
WHICH THE DEPARTMENT DISTRIBUTES MONEY PURSUANT TO THIS SECTION12
TO A DISTRICT.13
(c) "A
PPLICABLE PROPERTY TAX YEAR" MEANS THE PROPERTY TAX14
YEAR THAT ENDS DURING THE APPLICABLE BUDGET YEAR .15
(d) "D
EPARTMENT" MEANS THE DEPARTMENT OF EDUCATION16
SB22-202-2- CREATED PURSUANT TO SECTION 24-1-115.1
(e) "E
LIGIBLE DISTRICT" MEANS A DISTRICT FOR WHICH THE2
OVERRIDE MILL CAPACITY IS LESS THAN THE MAXIMUM NUMBER OF3
OVERRIDE MILLS CALCULATED FOR THE DISTRICT .4
(f) "E
LIGIBLE INSTITUTE CHARTER SCHOOL" MEANS AN INSTITUTE5
CHARTER SCHOOL THAT IS LOCATED WITHIN THE GEOGRAPHIC6
BOUNDARIES OF AN ELIGIBLE DISTRICT.7
(g) "M
AXIMUM NUMBER OF OVERRIDE MILLS " MEANS THE NUMBER8
OF OVERRIDE MILLS CALCULATED FOR A DISTRICT PURSUANT TO9
SUBSECTION (3) OF THIS SECTION.10
(h) "O
VERRIDE MILL CAPACITY" MEANS THE NUMBER OF OVERRIDE11
MILLS CALCULATED PURSUANT TO SUBSECTION (4) OF THIS SECTION THAT12
A DISTRICT MAY BE EXPECTED TO LEVY TOWARD THE DISTRICT 'S MAXIMUM13
NUMBER OF OVERRIDE MILLS.14
(i) "O
VERRIDE MILL PER PUPIL MATCH AMOUNT " MEANS THE15
AMOUNT OF THE OVERRIDE MILL MATCH AMOUNT THAT THE DEPARTMENT16
DISTRIBUTES TO AN ELIGIBLE DISTRICT PURSUANT TO SUBSECTION (5)(a)17
OF THIS SECTION FOR A BUDGET YEAR , DIVIDED BY THE ELIGIBLE18
DISTRICT'S FUNDED PUPIL COUNT FOR THAT BUDGET YEAR .19
(j) "O
VERRIDE MILLS" MEANS PROPERTY TAX MILLS THAT A20
DISTRICT LEVIES PURSUANT TO SECTION 22-54-108.21
(k) "S
MALL RURAL DISTRICT" HAS THE SAME MEANING AS22
PROVIDED IN SECTION 22-54-108.23
(l) "T
OTAL PROGRAM" MEANS THE AMOUNT OF TOTAL PROGRAM24
FUNDING FOR A DISTRICT CALCULATED PURSUANT TO SECTION 22-54-10425
(2)
BEFORE APPLICATION OF THE BUDGET STABILIZATION FACTOR .26
(2) (a) B
EGINNING IN THE 2022-23 BUDGET YEAR AND FOR EACH27
SB22-202
-3- BUDGET YEAR THEREAFTER , THE DEPARTMENT, IN JUNE OF EACH BUDGET1
YEAR, SHALL CALCULATE AND DISTRIBUTE AS A LUMP SUM TO EACH2
ELIGIBLE DISTRICT AND EACH ELIGIBLE INSTITUTE CHARTER SCHOOL AN3
OVERRIDE MILL MATCH AMOUNT AS PROVIDED IN THIS SECTION . THE4
DEPARTMENT SHALL DISTRIBUTE THE OVERRIDE MILL MATCH AMOUNT5
FROM MONEY ANNUALLY APPROPRIATED TO THE MILL LEVY OVERRIDE6
MATCH FUND CREATED IN SUBSECTION (6) OF THIS SECTION. IN A BUDGET7
YEAR IN WHICH THE GENERAL ASSEMBLY DOES NOT APPROPRIATE A8
SUFFICIENT AMOUNT TO FULLY FUND THE DISTRIBUTIONS CALCULATED9
PURSUANT TO THIS SECTION , THE DEPARTMENT SHALL REDUCE THE10
AMOUNT OF EACH ELIGIBLE DISTRICT 'S AND EACH ELIGIBLE INSTITUTE11
CHARTER SCHOOL'S DISTRIBUTION BY THE SAME PERCENTAGE THAT THE12
DEFICIT BEARS TO THE AMOUNT REQUIRED TO FULLY F UND THE13
DISTRIBUTIONS CALCULATED PURSUANT TO THIS SECTION .14
(b) T
HE OVERRIDE MILL MATCH AMOUNT THAT AN ELIGIBLE15
DISTRICT RECEIVES PURSUANT TO THIS SECTION IS DEEMED TO BE16
ADDITIONAL MILL LEVY REVENUE THAT IS SUBJECT TO DISTRIBUTION TO17
THE CHARTER SCHOOLS OF THE DISTRICT IN THE SAME MANNER THAT THE18
DISTRICT DISTRIBUTES OTHER ADDITIONAL MILL LEVY REVENUE THAT IT19
COLLECTS TO THE CHARTER SCHOOLS OF THE DISTRICT PURSUANT TO20
SECTION 22-32-108.5.21
(3) (a) F
OR THE 2022-23 BUDGET YEAR AND FOR EACH BUDGET22
YEAR THEREAFTER, THE DEPARTMENT SHALL ANNUALLY DETERMINE EACH23
DISTRICT'S MAXIMUM NUMBER OF OVERRIDE MILLS , WHICH IS EQUAL TO24
THE NUMBER OF MILLS THAT A DISTRICT MAY LEVY FOR THE APPLICABLE25
PROPERTY TAX YEAR TO GENERATE PROPERTY TAX REVENUE EQUAL TO26
TWENTY-FIVE PERCENT, OR THIRTY PERCENT IN THE CASE OF A SMALL27
SB22-202
-4- RURAL DISTRICT, OF THE DISTRICT'S:1
(I) T
OTAL PROGRAM FOR THE APPLICABLE BUDGET YEAR , IF TEN2
PERCENT OR LESS OF THE DISTRICT 'S FUNDED PUPIL COUNT FOR THE3
APPLICABLE BUDGET YEAR IS ATTRIBUTABLE TO THE DISTRICT 'S ONLINE4
PUPIL ENROLLMENT; OR5
(II) A
DJUSTED TOTAL PROGRAM FOR THE APPLICABLE BUDGET6
YEAR CALCULATED PURSUANT TO SUBSECTION (3)(b) OF THIS SECTION, IF7
MORE THAN TEN PERCENT OF THE DISTRICT 'S FUNDED PUPIL COUNT FOR8
THE APPLICABLE BUDGET YEAR IS ATTRIBUTABLE TO THE DISTRICT 'S9
ONLINE PUPIL ENROLLMENT.10
(b) I
F MORE THAN TEN PERCENT OF A DISTRICT 'S FUNDED PUPIL11
COUNT FOR THE APPLICABLE BUDGET YEAR IS ATTRIBUTABLE TO THE12
DISTRICT'S ONLINE PUPIL ENROLLMENT , THE DEPARTMENT SHALL13
CALCULATE THE DISTRICT'S ADJUSTED TOTAL PROGRAM AS FOLLOWS :14
(I) T
HE DEPARTMENT SHALL REDUCE THE DISTRICT 'S ONLINE PUPIL15
ENROLLMENT IN ACCORDANCE WITH THE FOLLOWING FORMULA :16
DISTRICT ONLINE PUPIL ENROLLMENT - (((DISTRICT FUNDED PUPIL17
COUNT - DISTRICT ONLINE PUPIL ENROLLMENT) ÷ .9) X .1)18
(II) T
HE DEPARTMENT SHALL SUBTRACT FROM THE DISTRICT 'S19
TOTAL PROGRAM FOR THE APPLICABLE BUDGET YEAR AN AMOUNT EQUAL20
TO THE DISTRICT'S REDUCED ONLINE PUPIL ENROLLMENT , CALCULATED21
PURSUANT TO SUBSECTION (3)(b)(I) OF THIS SECTION, MULTIPLIED BY THE22
PER PUPIL ONLINE FUNDING AMOUNT FOR THE APPLICABLE BUDGET YEAR23
AS DESCRIBED IN SECTION 22-54-104 (4.5)(c)(II), BEFORE APPLICATION OF24
THE BUDGET STABILIZATION FACTOR .25
(4) (a) F
OR THE 2022-23 BUDGET YEAR AND EVERY FIVE YEARS26
THEREAFTER, THE DEPARTMENT SHALL DETERMINE THE FIVE -YEAR27
SB22-202
-5- AVERAGE MEDIAN HOUSEHOLD INCOME FOR EACH DISTRICT IN THE STATE ,1
REFERRED TO IN THIS SECTION AS THE "AVERAGE MEDIAN INCOME ", BY2
AVERAGING THE MEDIAN HOUSEHOLD INCOME FOR EACH DISTRICT AS3
DETERMINED BY THE UNITED STATES CENSUS BUREAU 'S AMERICAN4
COMMUNITY SURVEY FOR THE PRECEDING FIVE CALENDAR YEARS . THE5
DEPARTMENT SHALL DETERMINE THE AMOUNT OF THE DIFFERENCE6
BETWEEN THE HIGHEST AVERAGE MEDIAN INCOME AND LOWEST AVERAGE7
MEDIAN INCOME AMONG ALL DISTRICTS IN THE STATE , REFERRED TO IN8
THIS SECTION AS THE "MEDIAN INCOME GAP".9
(b) F
OR THE 2022-23 BUDGET YEAR AND EVERY FIVE BUDGET10
YEARS THEREAFTER, USING THE AVERAGE MEDIAN INCOME FOR EACH11
DISTRICT, THE DEPARTMENT SHALL DETERMINE FOR EACH DISTRICT THE12
DISTRICT'S OVERRIDE MILL CAPACITY, WHICH IS THE NUMBER OF OVERRIDE13
MILLS THE DISTRICT MAY BE EXPECTED TO LEVY TOWARD THE DISTRICT 'S14
MAXIMUM NUMBER OF OVERRIDE MILLS , USING THE FOLLOWING FORMULA:15
(((
DISTRICT AVERAGE MEDIAN INCOME - LOWEST DISTRICT16
AVERAGE MEDIAN INCOME ) ÷ MEDIAN INCOME GAP) X 20) + 1517
(5) (a) F
OR THE 2022-23 BUDGET YEAR AND EACH BUDGET YEAR18
THEREAFTER, THE DEPARTMENT SHALL CALCULATE THE STATE MATCH19
PERCENTAGE FOR EACH ELIGIBLE DISTRICT BY SUBTRACTING THE ELIGIBLE20
DISTRICT'S OVERRIDE MILL CAPACITY FROM THE ELIGIBLE DISTRICT 'S21
MAXIMUM NUMBER OF OVERRIDE MILLS , THEN DIVIDING THE REMAINDER22
BY THE ELIGIBLE DISTRICT'S OVERRIDE MILL CAPACITY. THE DEPARTMENT23
SHALL ANNUALLY DISTRIBUTE TO EACH ELIGIBLE DISTRICT AN OVERRIDE24
MILL MATCH AMOUNT EQUAL TO THE ELIGIBLE DISTRICT 'S STATE MATCH25
PERCENTAGE MULTIPLIED BY THE AMOUNT OF PROPERTY TAX REVENUE26
GENERATED BY THE NUMBER OF OVERRIDE MILLS THAT THE ELIGIBLE27
SB22-202
-6- DISTRICT LEVIES FOR THE APPLICABLE PROPERTY TAX YEAR .1
(b) F
OR THE 2022-23 BUDGET YEAR AND EACH BUDGET YEAR2
THEREAFTER, THE DEPARTMENT SHALL DISTRIBUTE TO EACH ELIGIBLE3
INSTITUTE CHARTER SCHOOL AN OVERRIDE MILL MATCH AMOUNT EQUAL4
TO THE OVERRIDE MILL PER PUPIL MATCH AMOUNT FOR THE ELIGIBLE5
INSTITUTE CHARTER SCHOOL'S ACCOUNTING DISTRICT MULTIPLIED BY THE6
ELIGIBLE INSTITUTE CHARTER SCHOOL 'S PUPIL ENROLLMENT FOR THE7
APPLICABLE BUDGET YEAR ; EXCEPT THAT THE DEPARTMENT SHALL8
ENSURE THAT THE TOTAL PER PUPIL AMOUNT DISTRIBUTED TO AN ELIGIBLE9
INSTITUTE CHARTER SCHOOL PURSUANT TO THIS SECTION AND SECTION10
22-30.5-513.1
IN A SINGLE BUDGET YEAR DOES NOT EXCEED THE11
COMBINED TOTAL OF THE ADDITI ONAL MILL LEVY REVENUE PER PUPIL12
AMOUNT AND OVERRIDE MILL PER PUPIL MATCH AMOUNT OF THE ELIGIBLE13
INSTITUTE CHARTER SCHOOL'S ACCOUNTING DISTRICT FOR THE APPLICABLE14
BUDGET YEAR.15
(6) T
HE MILL LEVY OVERRIDE MATCH FUND IS CREATED IN THE16
STATE TREASURY. THE FUND CONSISTS OF MONEY APPROPRIATED OR17
TRANSFERRED TO THE FUND BY THE GENERAL ASSEMBLY . THE STATE18
TREASURER SHALL CREDIT TO THE FUND ALL INTEREST AND INCOME19
DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE FUND .20
S
UBJECT TO ANNUAL APPROPRIATION BY THE GENERAL ASSEMBLY , FOR21
THE 2022-23 BUDGET YEAR AND EACH BUDGET YEAR THEREAFTER , THE22
DEPARTMENT SHALL DISTRIBUTE MONEY FROM THE FUND AS DESCRIBED23
IN THIS SECTION. IN ADDITION, THE DEPARTMENT MAY EXPEND A PORTION24
OF THE AMOUNT APPROPRIATED FROM THE FUND TO PAY THE DIRECT25
COSTS THAT THE DEPARTMENT INCURS IN IMPLEMENTING THIS SECTION .26
SECTION 2. Safety clause. The general assembly hereby finds,27
SB22-202
-7- determines, and declares that this act is necessary for the immediate1
preservation of the public peace, health, or safety.2
SB22-202
-8-