Page 1
April 29, 2022 SB 22-202
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated April 18, 2022)
Drafting Number:
Prime Sponsors:
LLS 22-1011
Sen. Zenzinger; Rankin
Rep. McCluskie
Date:
Bill Status:
Fiscal Analyst:
April 29, 2022
House Trans & Local Govt.
Marc Carey | 303-866-4102
marc.carey@state.co.us
Bill Topic: STATE MATCH FOR MILL LEVY OVERRIDE REVENUE
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☒ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill distributes state funds to eligible school districts to match local money raised
through mill levy overrides according to a statutory formula. The bill increases state
expenditures and local school district revenue on an ongoing basis.
Appropriation
Summary:
For FY 2022-23, the bill requires and contains a General Fund appropriation $41,238
and a cash fund appropriation of $20,000,000 million to the Colorado Department of
Education from the Mill Levy Override Match Fund.
Fiscal Note
Status:
The fiscal note reflects the reengrossed bill.
Table 1
State Fiscal Impacts Under SB 22-202
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue
- -
Expenditures General Fund $41,238 -
Cash Fund $20,000,000 $20,000,000
Centrally Appropriated $8,091 -
Total Expenditures $20,049,329 $20,000,000
Total FTE 0.5 FTE -
Transfers General Fund ($20,000,000) -
MLO Match Fund $20,000,000
Total Transfers $0
Other Budget Impacts General Fund Reserve $6,186 -
Page 2
April 29, 2022 SB 22-202
Summary of Legislation
Beginning in FY 2022-23, the bill directs the Colorado Department of Education (CDE) to distribute to
each eligible school district and institute charter school an amount of state matching money for local
money raised through mill levy overrides (MLOs). To determine the state match, the CDE must
calculate following:
a district’s MLO maximum, equal to the number of mills required to generate:
o 25 percent of the district’s total program for urban and rural districts;
o 30 percent of the district’s total program for small rural districts; and
a district’s MLO capacity, defined as the number of mills the district may be expected to levy
toward the district’s MLO maximum, based on the district’s median household income.
If a district’s MLO capacity is less than its MLO maximum, the district is eligible to receive a state
match. The CDE must calculate the state match for each eligible district and institute charter school
as specified in the bill and distribute the state match from the newly created Mill Levy Override Match
Fund.
In a fiscal year in which the General Assembly does not appropriate enough money to fully fund
distributions for eligible districts, the distribution to each eligible district and institute charter school
is prorated based on the amount appropriated.
Background
Under current law and with voter approval, school districts may levy additional mills above the total
program mills specified in the school finance formula. These mills are known as mill levy overrides,
and have been levied by some districts since FY 1996-97. Districts designated as urban or rural by the
CDE are authorized to levy MLOs sufficient to generate 25 percent of their total program before the
budget stabilization factor. Districts designated as small rural may levy MLOs sufficient to generate
30 percent. In FY 2021-22, 124 of 178 districts levied MLOs, generating an estimated $1.4 billion,
equivalent to 43 percent of the school finance local share. In FY 2021-22, four districts levied their
MLO maximum amount.
Assumptions
Colorado Association of School Executives (CASE) Model. This fiscal note assumes that the state
match and district and institute charter school eligibility will be determined using a spreadsheet
model, developed by CASE. The model depends on the following key structural assumptions:
matching funds will not be provided for multidistrict online students in excess of 10 percent of the
district’s funded pupil count;
district MLO maximum is defined as either 25 percent or 30 percent of the district’s total program
before the budget stabilization factor, depending on the category of district;
district MLO capacity is defined as the district’s relative ranking of median household income,
normalized on the range of 15 to 35 mills; Page 3
April 29, 2022 SB 22-202
eligible districts are those whose MLO capacity is less than their MLO maximum;
state support mills are the difference between MLO maximum and MLO capacity;
district return on investment (ROI) equals support mills divided by MLO capacity;
district state match equals MLO revenue scaled proportional to district ROI; and
eligibility of and match amount for institute charter schools is determined by the school district in
which they are geographically located.
Figure 1 shows a map of the 30 qualifying districts, and their return on investment for each 1 mill local
MLO effort, with the $20 million appropriation for matching funds contained in the bill.
Figure 1
Return on Investment from 1 Mill of Local MLO Effort
Currently Eligible Districts
Source: Map prepared by Legislative Council Staff.
Page 4
April 29, 2022 SB 22-202
State Transfers
The bill transfers $20,000,000 from the General Fund to the Mill Levy Override Match Fund in
FY 2022-23.
State Expenditures
In FY 2022-23 and thereafter, the bill increases state expenditures in the Colorado Department of
Education by an estimated $20.0 million. Expenditures are shown in Table 2 and detailed below.
Table 2
Expenditures Under Senate Bill 22-202
FY 2022-23 FY 2023-24
Department of Education
Personal Services $34,363 -
Operating Expenses $675 -
Capital Outlay Costs $6,200 -
State MLO Match $20,000,000 $20,000,000
Centrally Appropriated Costs
1
$8,091 -
Total Cost $20,049,239 $20,000,000
Total FTE 0.5 FTE -
1
Centrally appropriated costs are not included in the bill's appropriation.
MLO state match. Using FY 2021-22 data and under the assumptions outlined above, the CASE model
estimates that 30 districts with existing MLOs would be eligible for a state match. This bill contains a
cash fund appropriation of $20.0 million for state matching funds from the newly created Mill Levy
Override Match Fund. Prorated district MLO matching amounts corresponding to the $20 million
appropriation appear in Appendix A.
If all districts enacted MLOs to the maximum allowable level, the model estimates that 72 districts
would receive $165.4 million in state matching funds.
Department of Education. CDE personnel will maintain and update the CASE model. District-level
data to be maintained include funded pupil count, online pupil count, total program before the budget
stabilization factor, online funding, assessed value, MLOs levied, and MLO revenue. CDE must also
annually update district-level median household income information, available online. In FY 2022-23
only, 0.5 FTE is required to adapt the CASE model to a format accessible to school districts. The
ongoing workload associated with maintaining the model can be accomplished within current
appropriations, as the model is populated primarily with information that CDE already calculates in
its normal course of business.
Page 5
April 29, 2022 SB 22-202
Centrally appropriated costs. Pursuant to a Joint Budget Committee policy, certain costs associated
with this bill are addressed through the annual budget process and centrally appropriated in the Long
Bill or supplemental appropriations bills, rather than in this bill. These costs, which include employee
insurance and supplemental employee retirement payments, are shown in Table 2.
Other Budget Impacts
General Fund reserve. Under current law, an amount equal to 15 percent of General Fund
appropriations must be set aside in the General Fund statutory reserve beginning in FY 2022-23. Based
on this fiscal note, the bill is expected to increase the amount of General Fund held in reserve by $6,186
in FY 2022-23, which will decrease the amount of General Fund available for other purposes.
School District
This bill is provides a state match to 30 districts with existing MLOs totaling $20.0 million, in
FY-2022 23. Because the appropriation is less than the fully funded amount, district matches are scaled
down proportionately. District level return on investment ratios and match amounts for the given
appropriation are shown in Appendix A. If all eligible districts passed MLOs up to their maximum,
the bill would provide a state match to 72 districts totaling an estimated $165.4 million.
As discussed above, eligibility will be determined through use of the CASE model, and depends on
district funded pupil count, online count, online funding, CSI count, total program before the budget
stabilization factor, assessed value, a five-year average of district median household income, and
district MLO effort. District eligibility and the amount of state match will be determined by formulas
in the bill, and depend on a comparison of each district’s MLO maximum effort and MLO capacity.
The eligibility of and match amount for institute charter schools is determined by the eligibility and
match amount of the school district in which they are geographically located. Match estimates are
based on FY 2021-22 data, the latest actual data available.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his signature.
State Appropriations
For FY 2022-23, the bill requires and contains the following appropriations to the Colorado
Department of Education:
$20,000,000 from the Mill Levy Override Match Fund; and
$41,238 from the General Fund, and an allocation of 0.5 FTE.
Page 6
April 29, 2022 SB 22-202
State and Local Government Contacts
Education Legislative Council Staff
Joint Budget Committee Staff School Districts
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes. County District
Eligible for
State Match
District Return
on Investment
Total State
Portion
Total State
Match
ADAMS MAPLETON - - - -$
ADAMS ADAMS 12 FIVE STAR Yes 1.04 0.04 2,457,719$
ADAMS COMMERCE CITY - - - -$
ADAMS BRIGHTON - - - -$
ADAMS BENNETT - - - -$
ADAMS STRASBURG - - - -$
ADAMS WESTMINSTER Yes 1.05 0.05 1,194,811$
ALAMOSA ALAMOSA - - - -$
ALAMOSA SANGRE DE CRISTO - - - -$
ARAPAHOE ENGLEWOOD - - - -$
ARAPAHOE SHERIDAN - - - -$
ARAPAHOE CHERRY CREEK - - - -$
ARAPAHOE LITTLETON - - - -$
ARAPAHOE DEER TRAIL Yes 1.01 0.01 69$
ARAPAHOE AURORA Yes 1.06 0.06 6,635,864$
ARAPAHOE BYERS - - - -$
ARCHULETA ARCHULETA - - - -$
BACA WALSH Yes 1.11 0.11 19,623$
BACA PRITCHETT - - - -$
BACA SPRINGFIELD - - - -$
BACA VILAS - - - -$
BACA CAMPO - - - -$
BENT LAS ANIMAS - - - -$
BENT MCCLAVE Yes 1.21 0.21 26,868$
BOULDER ST VRAIN - - - -$
BOULDER BOULDER - - - -$
CHAFFEE BUENA VISTA - - - -$
CHAFFEE SALIDA - - - -$
CHEYENNE KIT CARSON - - - -$
CHEYENNE CHEYENNE - - - -$
CLEAR CREEK CLEAR CREEK - - - -$
CONEJOS NORTH CONEJOS Yes 2.00 1.00 190,085$
CONEJOS SANFORD - - - -$
CONEJOS SOUTH CONEJOS - - - -$
COSTILLA CENTENNIAL - - - -$
COSTILLA SIERRA GRANDE - - - -$
CROWLEY CROWLEY Yes 1.12 0.12 38,872$
CUSTER WESTCLIFFE - - - -$
DELTA DELTA - - - -$
DENVER DENVER - - - -$
DOLORES DOLORES - - - -$
DOUGLAS DOUGLAS - - - -$
EAGLE EAGLE - - - -$
ELBERT ELIZABETH - - - -$
Appendix A
Current Eligibilty, Return on Investment, and Estimated State Match, FY 2022-23
Assumes a $20 Million Appropriation
Prepared by Legislative Council Staff 4/26/2022 County District
Eligible for
State Match
District Return
on Investment
Total State
Portion
Total State
Match
Appendix A
Current Eligibilty, Return on Investment, and Estimated State Match, FY 2022-23
Assumes a $20 Million Appropriation
ELBERT KIOWA - - - -$
ELBERT BIG SANDY - - - -$
ELBERT ELBERT - - - -$
ELBERT AGATE - - - -$
EL PASO CALHAN - - - -$
EL PASO HARRISON Yes 1.32 0.32 1,865,964$
EL PASO WIDEFIELD Yes 1.14 0.14 570,563$
EL PASO FOUNTAIN Yes 2.06 1.06 1,076,753$
EL PASO COLORADO SPRINGS - - - -$
EL PASO CHEYENNE MOUNTAIN - - - -$
EL PASO MANITOU SPRINGS - - - -$
EL PASO ACADEMY - - - -$
EL PASO ELLICOTT - - - -$
EL PASO PEYTON Yes 1.03 0.03 11,724$
EL PASO HANOVER - - - -$
EL PASO LEWIS-PALMER - - - -$
EL PASO FALCON Yes 1.12 0.12 2,776,526$
EL PASO EDISON - - - -$
EL PASO MIAMI-YODER Yes 1.14 0.14 4,178$
FREMONT CANON CITY - - - -$
FREMONT FLORENCE - - - -$
FREMONT COTOPAXI - - - -$
GARFIELD ROARING FORK - - - -$
GARFIELD RIFLE - - - -$
GARFIELD PARACHUTE - - - -$
GILPIN GILPIN - - - -$
GRAND WEST GRAND - - - -$
GRAND EAST GRAND - - - -$
GUNNISON GUNNISON - - - -$
HINSDALE HINSDALE - - - -$
HUERFANO HUERFANO - - - -$
HUERFANO LA VETA - - - -$
JACKSON NORTH PARK - - - -$
JEFFERSON JEFFERSON - - - -$
KIOWA EADS - - - -$
KIOWA PLAINVIEW Yes 1.14 0.14 9,238$
KIT CARSON ARRIBA-FLAGLER - - - -$
KIT CARSON HI PLAINS - - - -$
KIT CARSON STRATTON Yes 1.25 0.25 49,362$
KIT CARSON BETHUNE - - - -$
KIT CARSON BURLINGTON - - - -$
LAKE LAKE - - - -$
LA PLATA DURANGO - - - -$
LA PLATA BAYFIELD - - - -$
Prepared by Legislative Council Staff 4/26/2022 County District
Eligible for
State Match
District Return
on Investment
Total State
Portion
Total State
Match
Appendix A
Current Eligibilty, Return on Investment, and Estimated State Match, FY 2022-23
Assumes a $20 Million Appropriation
LA PLATA IGNACIO - - - -$
LARIMER POUDRE - - - -$
LARIMER THOMPSON - - - -$
LARIMER ESTES PARK - - - -$
LAS ANIMAS TRINIDAD - - - -$
LAS ANIMAS PRIMERO - - - -$
LAS ANIMAS HOEHNE - - - -$
LAS ANIMAS AGUILAR - - - -$
LAS ANIMAS BRANSON - - - -$
LAS ANIMAS KIM - - - -$
LINCOLN GENOA-HUGO - - - -$
LINCOLN LIMON - - - -$
LINCOLN KARVAL - - - -$
LOGAN VALLEY - - - -$
LOGAN FRENCHMAN - - - -$
LOGAN BUFFALO - - - -$
LOGAN PLATEAU - - - -$
MESA DEBEQUE - - - -$
MESA PLATEAU VALLEY - - - -$
MESA MESA VALLEY Yes 1.03 0.03 404,141$
MINERAL CREEDE - - - -$
MOFFAT MOFFAT - - - -$
MONTEZUMA MONTEZUMA - - - -$
MONTEZUMA DOLORES Yes 1.14 0.14 55,948$
MONTEZUMA MANCOS Yes 1.15 0.15 50,445$
MONTROSE MONTROSE - - - -$
MONTROSE WEST END Yes 1.42 0.42 104,517$
MORGAN BRUSH - - - -$
MORGAN FT. MORGAN Yes 1.05 0.05 29,996$
MORGAN WELDON Yes 1.17 0.17 1,618$
MORGAN WIGGINS - - - -$
OTERO EAST OTERO - - - -$
OTERO ROCKY FORD - - - -$
OTERO MANZANOLA - - - -$
OTERO FOWLER - - - -$
OTERO CHERAW - - - -$
OTERO SWINK Yes 1.63 0.63 9,604$
OURAY OURAY - - - -$
OURAY RIDGWAY - - - -$
PARK PLATTE CANYON - - - -$
PARK PARK - - - -$
PHILLIPS HOLYOKE Yes 1.05 0.05 26,113$
PHILLIPS HAXTUN - - - -$
PITKIN ASPEN - - - -$
Prepared by Legislative Council Staff 4/26/2022 County District
Eligible for
State Match
District Return
on Investment
Total State
Portion
Total State
Match
Appendix A
Current Eligibilty, Return on Investment, and Estimated State Match, FY 2022-23
Assumes a $20 Million Appropriation
PROWERS GRANADA - - - -$
PROWERS LAMAR - - - -$
PROWERS HOLLY - - - -$
PROWERS WILEY - - - -$
PUEBLO PUEBLO CITY - - - -$
PUEBLO PUEBLO RURAL - - - -$
RIO BLANCO MEEKER - - - -$
RIO BLANCO RANGELY - - - -$
RIO GRANDE DEL NORTE - - - -$
RIO GRANDE MONTE VISTA Yes 1.32 0.32 62,748$
RIO GRANDE SARGENT Yes 1.02 0.02 1,512$
ROUTT HAYDEN - - - -$
ROUTT STEAMBOAT SPRINGS - - - -$
ROUTT SOUTH ROUTT - - - -$
SAGUACHE MOUNTAIN VALLEY - - - -$
SAGUACHE MOFFAT Yes 1.36 0.36 85,095$
SAGUACHE CENTER - - - -$
SAN JUAN SILVERTON - - - -$
SAN MIGUEL TELLURIDE - - - -$
SAN MIGUEL NORWOOD - - - -$
SEDGWICK JULESBURG - - - -$
SEDGWICK PLATTE VALLEY Yes 1.08 0.08 5,713$
SUMMIT SUMMIT - - - -$
TELLER CRIPPLE CREEK - - - -$
TELLER WOODLAND PARK - - - -$
WASHINGTON AKRON - - - -$
WASHINGTON ARICKAREE - - - -$
WASHINGTON OTIS - - - -$
WASHINGTON LONE STAR - - - -$
WASHINGTON WOODLIN - - - -$
WELD GILCREST - - - -$
WELD EATON - - - -$
WELD KEENESBURG - - - -$
WELD WINDSOR - - - -$
WELD JOHNSTOWN - - - -$
WELD GREELEY Yes 1.08 0.08 1,572,534$
WELD PLATTE VALLEY - - - -$
WELD FT. LUPTON - - - -$
WELD AULT-HIGHLAND - - - -$
WELD BRIGGSDALE - - - -$
WELD PRAIRIE - - - -$
WELD PAWNEE - - - -$
YUMA YUMA 1 Yes 1.07 0.07 79,939$
YUMA WRAY RD-2 - - - -$
Prepared by Legislative Council Staff 4/26/2022 County District
Eligible for
State Match
District Return
on Investment
Total State
Portion
Total State
Match
Appendix A
Current Eligibilty, Return on Investment, and Estimated State Match, FY 2022-23
Assumes a $20 Million Appropriation
YUMA IDALIA RJ-3 - - - -$
YUMA LIBERTY J-4 - - - -$
CSI Multiple Yes NA NA 581,859$
STATE TOTAL 30 20,000,000$
Source: Legislative Council Staff and Colorado Department of Education.
Prepared by Legislative Council Staff 4/26/2022