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February 1, 2024 SB 24-078
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0655
Sen. Marchman; Priola
Rep. Joseph; McLachlan
Date:
Bill Status:
Fiscal Analyst:
February 1, 2024
Senate Education
Shukria Maktabi | 303-866-4720
shukria.maktabi@coleg.gov
Bill Topic: OUTDOOR NATURE -BASED PRESCHOOL PROGRAMS
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill adds outdoor nature-based preschool programs to the definition of child care
center for licensing purposes. It increases state and local expenditures on an ongoing
basis beginning in FY 2024-25, and increases state revenue in FY 2025-26.
Appropriation
Summary:
For FY 2024-25, the bill requires an appropriation of $293,974 to multiple state
agencies.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under SB 24-078
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue - -
Expenditures General Fund $293,974 $262,864
Centrally Appropriated $50,982 $50,713
Total Expenditures $344,956 $313,577
Total FTE 2.7 FTE 2.7 FTE
Transfers - -
Other Budget Impacts General Fund Reserve $44,096 $39,430
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February 1, 2024 SB 24-078
Summary of Legislation
The bill defines outdoor nature-based preschool programs (outdoor programs) as child care
centers for licensing purposes. Outdoor programs serve children between three and eight years
of age and operate at least 50 percent in a department-approved outdoor space.
The Department of Early Childhood (CDEC) must develop rules for outdoor program licensing by
December 31, 2025, and provide trainings to licensing staff and to outdoor program staff on
their operations. The CDEC can collaborate with existing outdoor programs to implement the
trainings, and with local fire departments and the Department of Public Health and Environment
(CDPHE) for certain safety and sanitary facility requirements.
Background & Assumptions
Currently, outdoor programs are not licensed in Colorado and nationally, with the exception of
Washington. These outdoor programs differ from traditional child care centers in term of the
facilities’ indoor and outdoor environments, and instead operate in natural environments and
use non-traditional equipment and materials. Thus, different licensing standards are required for
outdoor programs and the fiscal note assumes that CDEC will be required to continually create
and approve site-specific plans for each program to ensure that safety standards are maintained
for children in these programs.
The fiscal note assumes 10 outdoor programs will become licensed through this bill. To the
extent that there are more outdoor schools than estimated, revenue and expenditures will be
higher than discussed below and will be addressed through the budget process.
State Revenue
Beginning in FY 2025-26, the bill will increase revenue to the Child Care Licensing Cash Fund in
the Department of Early Childhood by a minimal amount for outdoor nature-based preschool
programs to pay a licensing fee. The fiscal note assumes that there will be ten such centers;
however, the amount of fee revenue depends on the number of children enrolled in those
schools.
The existing fee structure for child care facilities is based on capacity, with preschools with 5-15
children paying $200, preschools with 16-30 children paying $175 plus $3 per child, and
preschools with 31 or more children paying $300 plus $3 per child. For informational purposes,
if five of the expected schools are small schools with less than 15 children, and five are medium
schools with 20 children each, $2,375 in revenue would be generated.
Child care licensing fees are set in rule by the CDEC. As a result, the long-term structure of fees
for outdoor preschools may be adjusted by rule in future years, through a specific fee for
outdoor preschools, an adjustment to all child care licensing fees, or continuation of the current
fee structure. Because of the limited amount of potential revenue under the current fee
structure, the fiscal note assumes that General Fund is required. Page 3
February 1, 2024 SB 24-078
State Expenditures
The bill increases state expenditures by about $345,000 in FY 2024-25 and $314,000 in
FY 2025-26, primary in CDEC, paid from the General Fund. It also increases expenditures in the
CDPHE. Costs are shown in Table 2 and detailed below.
Table 2
Expenditures Under SB 24-078
FY 2024-25 FY 2025-26
Department of Early Childhood
Personal Services $177,124 $193,285
Operating Expenses $2,944 $3,200
Capital Outlay Costs $20,010 -
Trainings for Outdoor Programs $50,000 $50,000
Trainings for Licensing Staff $8,556 -
Centrally Appropriated Costs
1
$43,056 $46,872
FTE – Personal Services 2.3 FTE 2.5 FTE
CDEC Subtotal $301,690 $293,357
Department of Public Health and Environment
Personal Services $35,341 $16,378
Centrally Appropriated Costs
1
$7,925 $3,842
FTE – Personal Services 0.4 FTE 0.2 FTE
CDPHE Subtotal $43,266 $20,220
Total $344,956 $313,577
Total FTE 2.7 FTE 2.7 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Department of Early Childhood. Beginning in FY 2024-25, the CDEC will have costs for staff to
implement licensure for outdoor programs and to provide trainings to outdoor programs and
internal staff. The fiscal note assumes that CDEC costs are paid out of the General Fund, as the
any licensing fee revenue received is not sufficient to cover costs.
Staff. The CDEC requires 2.5 FTE to develop licensing rules for outdoor programs; manage
the licenses of outdoor programs, including overseeing site-specific inspections and
reviewing program plans; work with outdoor programs to develop their required safety
plans; and develop and provide trainings to outdoor programs on the new licensing
regulations. Workload will also increase to solicit and manage the contract with the
organization providing trainings to outdoor program staff on the operations of their
programs, as discussed below. Staff costs are prorated for an August 1, 2024 start date. Page 4
February 1, 2024 SB 24-078
Trainings for outdoor programs. Beginning in FY 2024-25, the CDEC requires $50,000
annually to contract an organization to provide trainings to outdoor program staff on
implementing and operating outdoor programs. Trainings, tailored for either directors or
teachers of outdoor programs, cover curriculum development, addressing learning needs,
budgeting, site development, and building community partnerships. The cost of each
training ranges from $690 to $1,385 per person depending on the staff type, and the fiscal
note assumes annual participation from staff of outdoor programs and the CDEC’s internal
licensing staff.
The fiscal note anticipates directors and staff to start completing trainings in FY 2024-25, so
staff are prepared for when the CDEC promulgates the rules and starts issuing licenses to
this program type in FY 2025-26. The fiscal note also assumes the state is covering these
training costs as the bill requires the CDEC to provide outdoor programs with this training.
Trainings for CDEC staff. In FY 2024-25, the CDEC requires $8,556 to cover training
expenses for licensing staff that oversee site inspections for outdoor programs, as described
in the bill. Training topics include information on interpreting site plans, conducting
inspections of outdoor program sites, and communicating with other state agencies that
inspect outdoor programs. Costs include training attendance, transportation, and travel
costs for 2.5 FTE.
Department of Public Health and Environment. The CDPHE requires 0.4 FTE initially in
FY 2024-25, and 0.2 FTE in ongoing years, to collaborate with CDEC to develop standards for the
operation of outdoor programs and enforce these standards. Staff activities include rulemaking,
conducting site visits, record reviews, inspections, report development, travel, follow-up
inspections as necessary, compliance assistance, outbreak investigations and enforcement. Staff
costs are prorated for an August 1, 2024 start date.
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.
Local Government
Costs for local fire departments will increase to collaborate the CDEC and to ensure outdoor
programs conform to licensing standards. These costs will vary by local government.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed.
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February 1, 2024 SB 24-078
State Appropriations
For FY 2024-25, the bill requires General Fund appropriations totaling $293,974 to multiple
departments as follows:
$258,634 to the Department of Early Childhood and 2.3 FTE; and
$35,340 to the Department of Public Health and Environment, and 0.4 FTE.
State and Local Government Contacts
Counties Early Childhood Education
Fire Chiefs Human Services Judicial
Public Health and Environment Public Safety
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.