Page 1
March 18, 2024 HB 24-1364
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0963
Rep. McCluskie; Bacon
Sen. Bridges; Lundeen
Date:
Bill Status:
Fiscal Analyst:
March 18, 2024
House Education
Anna Gerstle | 303-866-4375
anna.gerstle@coleg.gov
Bill Topic: EDUCATION-BASED WORKFORCE READINESS
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☒ School District
The bill requires the Colorado Department of Education to complete a financial study
on postsecondary and workforce readiness programs, and creates the Colorado
Statewide Longitudinal Data System in the Office of Informational Technology. The bill
increases state expenditures, and minimally increases school district workload, on an
ongoing basis.
Appropriation
Summary:
For FY 2024-25, the bill requires an appropriation of $6.3 million to multiple state
agencies. See State Appropriations section.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under HB 24-1364
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue - -
Expenditures General Fund $6,295,028 $1,557,900
Centrally Appropriated $225,355 $166,275
Total Expenditures $6,520,383 $1,724,175
Total FTE 9.7 FTE 7.3 FTE
Transfers - -
Other Budget Impacts General Fund Reserve $944,254 $233,685
Page 2
March 18, 2024 HB 24-1364
Summary of Legislation
The bill requires the Colorado Department of Education (CDE) to complete a financial study and
creates the Colorado Statewide Longitudinal Data System in the Office of Information
Technology (OIT).
Financial study. The bill requires that CDE contract for a financial study to review of a variety of
existing postsecondary and workforce readiness programs and to analyze potential costs and
cost savings related to the programs. Specifically, the study must:
analyze state and local education provider costs to provide such opportunities;
examine cost variation by region, types of credentials offered, quality of non-degree
credentials, and types of work-based learning opportunities;
streamline financial administration and reporting into one comprehensive program;
analyze different funding mechanisms and identify and model costs, benefits, and potential
savings of funding mechanisms;
project costs to expand opportunities for students and education providers;
analyze state-level incentives and barriers for adoption of programs;
review statutory purposes and outcomes of programs; and
develop and implement recommendations for the FY 2025-26 budget.
In FY 2024-25, the General Assembly must appropriate $800,000 from the General Fund for the
study. State agencies with programs related to education and workforce must provide guidance
as necessary. Legislative Council Staff and Joint Budget Committee Staff must provide input on
the financial modeling on the costs and savings of these programs. The CDE must provide the
financial study and final report to the General Assembly by December 1, 2024.
Statewide Longitudinal Data System. The bill creates the Colorado Statewide Longitudinal
Data System (SLDS) in OIT to establish a means to share education and workforce data and
outcomes that support decision making by students, families, educators, and policy makers. For
FY 2024-25, the General Assembly must appropriate $5.0 million for the system, which can be
spent through FY 2025-26.
OIT must adopt a timeline to phase-in the system, initiate work on the system, ensure data
privacy and security, provide technical support to contributing agencies, and align existing data
systems. State agencies are required to contribute data to the system.
The bill creates the following boards to support the system:
The SLDS Governing Board, which oversees creation of the system, establishes processes
and procedures for aligning data systems, defining metrics, and determining system
requirements, data sharing agreements and protocols. It includes leadership from
contributing agencies, which include OIT, CDE, the Department of Early Childhood (CDEC),
CDHE, CDLE, the Governor’s Office, Office of State Planning and Budgeting (OSPB), the
Department of Law (DOL). Nonvoting members also include the Colorado Community
College System (CCCS) and the public. Page 3
March 18, 2024 HB 24-1364
The Systems Build and Implementation Interagency Advisory Group, which advises the
governing board on the technical development and implementation of the system. It
includes staff with technical and systems expertise from contributing agencies.
The Sustainability Interagency Advisory Group, which advises the governing board on the
use and function of the system. It includes staff from contributing agencies who have an
understanding of the data in the system and how agencies use it for decision making.
OIT must submit an interim report on the system to the General Assembly by January 15, 2025,
and an annual report by April 15, 2026, and each year thereafter, that includes education and
workforce outcomes.
State Expenditures
The bill increases state expenditures by $6.5 million in FY 2024-25 and $1.7 million beginning in
FY 2025-26 and ongoing, paid from the General Fund. Expenditures are shown in Table 2.
Table 2
Expenditures Under HB 24-1364
FY 2024-25 FY 2025-26
Department of Education
Personal Services $169,846 $72,521
Operating Expenses $1,536 $640
Capital Outlay Costs $6,670 -
Financial Study Contract up to $753,245 -
Request for Proposals $21,700 -
Technical Support $200,000 -
Centrally Appropriated Costs
1
$29,023 $12,257
FTE – Personal Services 1.2 FTE 0.5 FTE
CDE Subtotal $1,182,020 $85,418
Office of Information Technology
Personal Services $907,586 $669,696
Operating Expenses $9,856 $7,424
Capital Outlay Costs $53,360 -
Data System Contract $3,000,000 -
Data Software Licenses $500,000 $500,000
Centrally Appropriated Costs
1
$181,357 $135,299
FTE – Personal Services 7.7 FTE
5.8 FTE
OIT Subtotal $4,652,159 $1,312,419 Page 4
March 18, 2024 HB 24-1364
Table 2
Expenditures Under HB 24-1364 (Cont.)
FY 2024-25 FY 2025-26
Department of Labor and Employment
Vendor Costs – Employment & Training Systems – OIT $150,000 -
Vendor Costs – Unemployment Insurance – OIT $100,000 -
CDLE Subtotal $250,000 -
Department of Higher Education
Contract Costs $196,000 $150,000
CDHE Subtotal $196,000 $150,000
Department of Early Childhood
Personal Services $61,595 $76,994
Operating Expenses $1,024 $1,280
Capital Outlay Costs $13,340 -
Vendor Costs – UPK and PDIS $125,703 $25,141
Integration – OIT $23,567 $54,204
Centrally Appropriated Costs
1
$14,975 $18,719
FTE – Personal Services 0.8 FTE 1.0 FTE
CDEC Subtotal $240,204 $176,337
Total $6,520,383 $1,724,175
Total FTE 9.7 FTE 7.3 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Department of Education. CDE requires staff and contract costs to conduct the financial study
and participate in the SLDS system.
Staff. In FY 2024-25 only, CDE requires 0.2 FTE to manage the financial study contract. In
FY 2024-25, CDE requires 1.0 FTE to participate in the development of the SLDS and manage
the integration of CDE data collections into the new SLDS; this role reduces to 0.5 FTE in
FY 2025-26 and ongoing to manage CDE system interactions with the SDLS.
Contract costs. The bill provides $800,000 for the financial study in FY 2024-25 only. After
administrative costs and $21,700 for procurement, about $753,245 is available for the
financial study contract. Actual costs will be determined through the procurement process. Page 5
March 18, 2024 HB 24-1364
Technical assistance. In FY 2024-25 only, CDE requires $200,000 for contract technical
assistance to align CDE data systems with the SLDS. Work will include modifying current
systems and building integration between systems.
Office of Information Technology. OIT will incur staff, data system, and software licensing
costs.
Staff. OIT requires 7.7 FTE in FY 2024-25 and 5.8 FTE in subsequent years to manage the
implementation and ongoing function of the SLDS, including the following positions:
• a project manager to manage the development and implementation of the SLDS;
• data engineer to develop the processes for the other agencies to align with the new
system and submit data;
• a data architect to design the system and data flows;
• a platform manager to implement the set-up of the new data platforms and connects to
other platforms;
• a data governance manager to ensure data collection and sharing meetings all policies,
privacy, and other data regulations; and
• data analyst and visualization developers to produce reports and develop interactive
dashboards.
Data system and software costs. In FY 2024-25 only, OIT requires $3.0 million to contract
for the data system. Beginning in FY 2024-25, OIT requires $500,000 per year for the
software licenses associated with the SLDS.
Department of Labor. In FY 2024-25 only, CDLE requires $250,000 for vendor costs for software
development and data submission to the SLDS from the employment and training systems
($150,000), and unemployment insurance systems ($100,000). These costs are reappropriated to
OIT.
Department of Higher Education. CDHE requires $196,000 in FY 2024-25 and $150,000 in
subsequent years to provide data and connect the Student Unit Records System to the SLDS.
Costs are assumed to be contract costs, and may be used for either vendor costs or contract
staff, depending on whether existing vendors are utilized.
Department of Early Childhood. CDEC requires 0.8 FTE in FY 2024-25 and 1.0 FTE in
subsequent years to develop and manage the connection of the Professional Development
Information System and Universal Preschool Program system to the SLDS, and will incur vendor
costs for modifications to the two systems. In addition, OIT manages the integration of CDEC
systems and requires $23,567 in FY 2024-25 and $54,204 in subsequent years to complete the
integration with SLDS. These costs are reappropriated to OIT.
Page 6
March 18, 2024 HB 24-1364
Office of Economic Development and International Trade. The bill increases workload and
potentially costs for OEDIT to participate in the working groups and connect their data systems
to the SLDS. It is unknown which data systems within OEDIT may need to be aligned with the
SLDS. As a result, no appropriation is required and any resources in future years will be
requested through the budget process.
Department of Law. The bill increases workload for the Department of Law to serve on the
working groups and provide legal counsel to participating agencies related to the SLDS. No
change in appropriations is required.
Governor’s Office. The bill increases workload for the Governor’s Office to serve on the working
groups. No change in appropriations is required.
Legislative Department. The bill increases workload for Legislative Council Staff and Joint
Budget Committee staff to provide input on the modeling for the financial study. No change in
appropriations is required.
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. Based on this fiscal note,
the bill is expected to increase the amount of General Fund held in reserve by the amounts
shown in Table 1, decreasing the amount of General Fund available for other purposes.
School Districts
The bill minimally increases workload for school districts that engage in the financial study
process.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his signature.
State Appropriations
For FY 2024-25, the bill requires the following General Fund appropriations:
$1,152,997 to the Colorado Department of Education, and 1.2 FTE;
$4.470,802 to the Office of Information Technology, and 7.7 FTE;
$250,000 to the Department of Labor and Employment, which is reappropriated to OIT; Page 7
March 18, 2024 HB 24-1364
$196,000 to the Colorado Department of Higher Education; and
$225,229 to the Colorado Department of Early Childhood, and 0.8 FTE, of which $23,567 is
reappropriated to OIT.
Departmental Difference
CDEC and OIT estimate that an additional $277,987 in FY 2024-25 and $79,392 in subsequent
years for OIT staff to support the integration of CDEC systems into the SLDS. The fiscal note
assumes that the new project staff in CDEC, vendor contracts, integration costs incurred by OIT,
and technical OIT data integration staff are sufficient to manage the integration of CDEC
systems into the SLDS.
State and Local Government Contacts
Early Childhood Education Governor's Office
Higher Education Information Technology Joint Budget Committee Staff
Labor Law Legislative Council Staff
Office of Economic Development
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 the General Assembly website.