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April 26, 2024 HB 24-1364
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated April 8, 2024)
Drafting Number:
Prime Sponsors:
LLS 24-0963
Rep. McCluskie; Bacon
Sen. Bridges; Lundeen
Date:
Bill Status:
Fiscal Analyst:
April 26, 2024
Senate 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, includes a state transfer, minimally increases school
district workload, and may increase state revenue on an ongoing basis.
Appropriation
Summary:
For FY 2024-25, the bill requires and includes an appropriation of $5.4 million to
multiple state agencies. See State Appropriations section.
Fiscal Note
Status:
The revised fiscal note reflects the reengrossed bill.
Table 1
State Fiscal Impacts Under HB 24-1364
Budget Year
FY 2024-25
Out Year
FY 2025-26
Out Year
FY 2026-27
Revenue - - -
Expenditures General Fund $800,005 $1,414,552 $1,426,501
Cash Fund $4,635,416 $364,584 -
Centrally Appropriated $191,944 $117,970 $102,344
Total Expenditures $5,627,365 $1,897,106 $1,528,845
Total FTE 8.1 FTE 4.9 FTE 4.3 FTE
Transfers General Fund ($5,000,000) - -
Cash Fund $5,000,000 - -
Total Transfers $0 - -
Other Budget Impacts General Fund Reserve $120,000 $212,183 $213,975
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April 26, 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 offer 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. The
bill creates the SLDS Cash Fund and requires that the State Treasurer transfers $5.0 million into
the fund in FY 2024-25, to be spent by OIT and CDE through FY 2026-27. OIT may seek, accept,
and expend gifts, grants, and donations for the system.
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 beginning in FY 2025-26.
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
April 26, 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 Revenue
The bill potentially increases state revenue from gifts, grants, or donations; however, no sources
have been identified at this time. Gifts, grants, and donations are exempt from TABOR revenue
limits.
State Transfers
In FY 2024-25, the bill transfers $5.0 million from the General Fund to the newly created SLDS
Cash Fund.
State Expenditures
The bill increases state expenditures by $5.6 million in FY 2024-25, $1.9 million in FY 2025-26,
and $1.5 million in subsequent years, paid from the General Fund and SLDS Cash Fund.
Expenditures are shown in Table 2.
The bill includes a requirement for General Fund appropriations of $800,000 for the financial
study and a $5.0 million transfer for the SLDS. In the first year, costs are covered by the amounts
provided, with about $365,000 in the SLDS Cash Fund remaining to cover a portion of the SLDS
costs in FY 2025-26. The remaining $1.4 million in FY 2025-26 and all costs in subsequent years
require General Fund in addition to the amounts provided in the bill.
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April 26, 2024 HB 24-1364
Table 2
Expenditures Under HB 24-1364
FY 2024-25 FY 2025-26 FY 2026-27
Department of Education
Personal Services $169,846 $72,521 $72,521
Operating Expenses $1,536 $640 $640
Capital Outlay Costs $6,670 - -
Financial Study Contract $753,250 - -
RFP $21,700 - -
Technical Support $50,000 $150,000 $150,000
Centrally Appropriated Costs
1
$29,023 $12,257 $12,257
FTE – Personal Services 1.2 FTE 0.5 FTE 0.5 FTE
CDE Subtotal $1,032,025 $235,418 $235,418
Office of Information Technology
Personal Services $817,630 $514,292 $401,101
Operating Expenses $8,832 $5,120 $3,840
Capital Outlay Costs $46,690 - -
Data System Contract $3,000,000 - -
Data Software License $500,000 $500,000 $500,000
Applications $59,267 $5,400 $4,050
Centrally Appropriated Costs
1
$162,921 $98,226 $75,111
FTE – Personal Services 6.9 FTE 4.0 FTE 3.0 FTE
OIT Subtotal $4,595,340 $1,123,038 $984,102
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 $186,000
CDHE Subtotal - $196,000 $186,000
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April 26, 2024 HB 24-1364
Table 2
Expenditures Under HB 24-1364 (Cont.)
FY 2024-25 FY 2025-26 FY 2026-27
Department of Early Childhood
Personal Services - $30,798 $61,595
Operating Expenses - $512 $1,024
Capital Outlay Costs - $6,670 -
Vendor Costs - $29,900 $5,980
Integration – OIT - $17,283 $39,750
Centrally Appropriated Costs
1
- $7,487 $14,975
FTE – Personal Services - 0.4 FTE 0.8 FTE
CDEC Subtotal - $92,650 $123,324
Total Cost $5,627,365 $1,897,106 $1,528,845
Total FTE 8.1 FTE 4.9 FTE 3.8 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Department of Education. CDE will have staff and contractor 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.
Technical assistance. In FY 2024-25 only, CDE requires $50,000 in FY 2024-25 and $150,000
in subsequent years for contract technical assistance to align CDE data systems with the
SLDS. Work will include modifying current systems and building and maintaining integration
between systems.
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April 26, 2024 HB 24-1364
Office of Information Technology. OIT will incur staff, data system, and software licensing
costs.
Staff. OIT requires 6.9 FTE in FY 2024-25, 4.0 FTE in FY 2025-26, and 3.0 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 engineers 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
• a data analyst and visualization developer 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. Application costs are estimated at $59,267 in
FY 2024-25, $5,400 in FY 2025-26, and $4,050 in subsequent years.
Department of Labor. In FY 2025-26 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. The fiscal note assumes that the necessary system changes in the Office of Vocational
Rehabilitation will be incorporated into an ongoing system modernization project. If it cannot be
incorporated, CDLE costs will be $40,000 higher than estimated.
Department of Higher Education. CDHE requires $196,000 in FY 2025-26 and $186,000 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 0.4 FTE in FY 2025-26 and 0.8 FTE in
subsequent years to develop and manage the connection of the Universal Preschool Program
system to the SLDS, and will incur vendor costs for modifications. In addition, OIT manages the
integration of CDEC systems and requires $17,283 in FY 2025-26 and $39,750 in subsequent
years to complete the integration with SLDS. These costs are reappropriated to OIT. The fiscal
note assumes that the Professional Development Information System (PDIS) will not be initially
connected to the system. If initial planning requires the connection of the PDIS system to the
SLDS, costs will be higher than estimated and requested through the annual budget process. Page 7
April 26, 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.
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April 26, 2024 HB 24-1364
State Appropriations
For FY 2024-25, the bill requires the following appropriations:
$800,005 from the General Fund to the Colorado Department of Education, and 0.2 FTE;
$202,997 from the Statewide Longitudinal Data System Cash Fund to the Colorado
Department of Education, and 1.0 FTE; and
$4,432,419 from the Statewide Longitudinal Data System Cash Fund to the Office of
Information Technology, and 6.9 FTE, to be spent through FY 2026-27.
Departmental Difference
CDEC and OIT estimate that an additional $233,068 in FY 2025-26 and $47,086 in subsequent
years is required 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 of Boards and Commissions 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.