SB 25-223
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
SB 25-223: MILL LEVY EQUALIZATION & INSTITUTE CHARTER SCHS
Prime Sponsors:
Sen. Kirkmeyer; Amabile
Rep. Sirota; Bird
Published for: Senate Appropriations
Drafting number: LLS 25-1011
Fiscal Analyst:
Anna Gerstle, 303-866-4375
anna.gerstle@coleg.gov
Version: Initial Fiscal Note
Date: March 31, 2025
Fiscal note status: This fiscal note reflects the introduced bill, which was recommended by the Joint
Budget Committee as part of the FY 2025-26 Long Bill budget package
Summary Information
Overview. The bill makes changes to state mill levy equalization funding that is distributed to state
Charter School Institute schools.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
State Expenditures
Appropriations. For FY 2025-26, the bill requires and includes an appropriation reduction of $1,008,494
to the Colorado Department of Education.
Table 1
State Fiscal Impacts
Type of Impact
Budget Year
FY 2025-26
Out Year
FY 2026-27
State Revenue $0 $0
State Expenditures (State Education Fund) -$1,008,494 -$1,008,494
Transferred Funds $0 $0
Change in TABOR Refunds $0 $0
Change in State FTE 0.0 FTE 0.0 FTE
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March 31, 2025 SB 25-223
Summary of Legislation
The bill makes changes to state mill levy equalization funding that is distributed to state Charter
School Institute (CSI) schools. Specifically, the bill excludes multidistrict online schools from
receiving mill levy equalization distributions, and requires that any school district mill levy
override (MLO) revenue that is shared with CSI schools be deducted from the calculation of mill
levy equalization funding.
Background
Under current law, state CSI mill levy equalization funding is distributed to CSI schools that are
geographically located in school districts that have passed MLOs. The General Assembly is
required to appropriate the amount necessary for full mill levy equalization for CSI schools; this
amount was $48.4 million statewide in FY 2024-25. Funding is distributed on a per pupil basis to
CSI schools, based on MLO revenue per pupil collected by the district in which the school is
located.
State Expenditures
Beginning in FY 2025-26, the bill decreases state expenditures in CDE by an estimated
$1,008,494 per year from the State Education Fund. There is currently one multidistrict online
school authorized by CSI. By excluding CSI multidistrict online schools from MLO equalization
distributions, the bill reduces the cost of the program.
There is no change in expenditures as a result of deducting district MLO revenue currently
shared with CSI schools from the calculation, as this provision codifies current practice into law.
There is currently one district, Durango, that shares district MLO revenue with CSI schools in
their geographic boundaries.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his signature.
State Appropriations
For FY 2025-26, the bill requires and includes an appropriation reduction of $1,008,494 from the
State Education Fund to the Colorado Department of Education.
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March 31, 2025 SB 25-223
State and Local Government Contacts
Education Joint Budget Committee Staff
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.