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April 24, 2024 SB 24-078
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated February 1, 2024)
Drafting Number:
Prime Sponsors:
LLS 24-0655
Sen. Marchman; Priola
Rep. Joseph; McLachlan
Date:
Bill Status:
Fiscal Analyst:
April 24, 2024
Senate Second Reading
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 $214,910 to multiple state
agencies.
Fiscal Note
Status:
The fiscal note reflects the introduced bill, as amended by the Senate Appropriations
Committee.
Table 1
State Fiscal Impacts Under SB 24-078
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue - -
Expenditures General Fund $184,910 $193,770
Child Care Licensing Cash Fund $30,000 $30,000
Centrally Appropriated $42,262 $50,714
Total Expenditures $257,172 $274,484
Total FTE 2.2 FTE 2.7 FTE
Transfers - -
Other Budget Impacts General Fund Reserve $27,736 $29,066
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April 24, 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 in FY 2024-25 and to outdoor
program staff on their operations beginning in FY 2025-26. 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. The bill requires the General Assembly to appropriate $30,000 from the Child Care
Licensing Cash Fund for outdoor program licensing each year from FY 2024-25 to FY 2026-27.
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.
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
April 24, 2024 SB 24-078
State Expenditures
The bill increases state expenditures by about $257,000 in FY 2024-25 and $275,000 in
FY 2025-26, primary in CDEC, paid from the General Fund and the Child Care Licensing Cash
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 $145,451 $193,285
Operating Expenses $2,304 $3,200
Capital Outlay Costs $13,340 $6,670
Trainings to Develop Outdoor Program Trainings $10,000 -
Trainings for Licensing Staff $8,474 $4,237
Centrally Appropriated Costs
1
$34,337 $46,872
FTE – Personal Services 1.8 FTE 2.5 FTE
CDEC Subtotal $213,906 $254,264
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 $257,121 $274,484
Total FTE 2.2 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 internal staff. $30,000 of
total costs will be paid out from the Child Care Licensing Cash Fund and the remaining from the
General Fund.
Staff. The CDEC requires 1.8 FTE to develop licensing rules for outdoor programs; manage
the licenses of outdoor programs, including overseeing site-specific inspections and
reviewing program plans; and work with outdoor programs to develop their required safety
plans. An additional 0.5 FTE will be required beginning in FY 2025-26 to develop and provide
trainings to outdoor programs on the new licensing regulations. Staff costs are prorated for
an August 1, 2024 start date. Page 4
April 24, 2024 SB 24-078
Trainings for CDEC staff. In FY 2024-25, the CDEC requires about $8,000 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 2.0 FTE in FY 2024-25 and 1 FTE in FY 2025-26.
Trainings for outdoor programs. In FY 2024-15, the CDEC requires 10,000 to cover training
expenses for licensing staff to develop trainings to provide trainings to outdoor program
staff on implementing and operating outdoor programs. Trainings to be developed and
provided by CDEC staff, tailored for either directors or teachers of outdoor programs, cover
curriculum development, addressing learning needs, budgeting, site development, and
building community partnerships.
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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April 24, 2024 SB 24-078
State Appropriations
For FY 2024-25, the bill appropriations totaling $214,910 to multiple departments as follows:
$179,569 to the Department of Early Childhood and 1.8 FTE, of which $149,569 is from the
General Fund and $30,000 is from the Child Care Licensing Cash Fund; and
$35,341 to the Department of Public Health and Environment, and 0.4 FTE.
State and Local Government Contacts
Early Childhoods 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.