PUBLIC SCHOOL FINANCE UPDATE Governor ’s Budget Request 2013-14 Lea nne Emm A s s i s tant Co mmi s s i one r 3 0 3 -866-6202 e mm_ l @ cd e .s tate. co .us Agenda Annual Audits, Accreditation Report & Financial Transparency - Reminders Governor’s Budget Request Annual Audits, Accreditation Report & Financial Transparency Annual Audits – June 30, 2012 Present to your Board of Education by November 30 Postmarked audited financial statements & Accreditation Report CDE and State Auditors Office by December 31 ADE Submission by December 31 Requests for extensions must be made before December 31 FY2011-12 Accreditation Report New Questions Unreserved Fund Balance Software Vendor Contact Information REMINDER: No longer need to submit hard copies of the collective bargaining agreement – post them online – HB121240 Financial Transparency Act Article 44 of Title 22, C.R.S. Part 3 HB10-1036 directs local education providers (LEP) to post financial information on-line, in a downloadable format, for free public access . LEP is defined as: A School District A Board of Cooperative Services (BOCES) A Charter School Institute A District Charter School An Institute Charter School Financial Transparency Act Required Documents Annual Budgets District Budget Document Uniform Budget Summary Sheet Financial Audit Quarterly Financial Statements Salary Schedules or Policies Accounts Payable Check Registers Credit, Debit and Purchase Card Statements Investment Performance Reports Financial Transparency Act Compliance Timeline Update information within 60 days Completion of report, statements, applicable information For example Budget Posted by August 30 if adopted June 30 Financial Transparency Act Not required to post personal information relating to payroll other information that is confidential or protected from public disclosure pursuant to state or federal law Examples: HIPPA; IDEA or Homeless payments to individuals Financial Transparency Act The current and prior two budget years’ financial information must be maintained on-line until the end of the current budget year. Governor’s Budget Request 2013-14 State of Colorado General Fund - $7.88 Billion 2013-14 - Governor's Budget Proposal Other Departments, $841.5, 11% Health Care Policy and Financing, $2031.8, 26% Human Services, $680.1, 9% Higher Education, $656.7, 8% Education (K-12), $3016.9, 38% Source: Governor’s Transmittal Letter – November 1, 2012 Corrections, $655.6, 8% in millions Assumptions FY2013-14 Budget Request Estimated Change Total Pupil Growth 8,592 825,813 At-Risk Growth 3,494 299,427 Inflation Estimate 2.2% NA $128.55 $5,971.81 Base Per Pupil Funding Late February 2013 – actual inflation Assumptions FY2013-14 Budget Request Negative factor amount the same as 2012-13 Negative factor percent changes from 16.11% to 15.6% Slight increase in local share Statewide average per pupil funding Increase of $185.12 to $6,659 Assumptions FY2013-14 Budget Request Assumed better revenues from 2012-13 Increases in amount available to transfer to State Education Fund All increases to school funding coming from State Education Fund FY2013-14 Budget Request Revised 2012-13 Appropriation 2013-14 Request Change Total Program prior to Negative Factor (Growth & Inflation) $6,302,403,884 $6,510,905,288 $208,501,404 Negative Factor (1,011,518,997) (1,011,518,997) (0) Revised Total Program $5,280,884,887 $5,499,386,291 $208,501,404 -16.11% -15.60% .51% Negative Factor Percentage 2013-14 Governor's Budget Request Total Program Funding - School Finance Act $5.499 Billion Other State Funds, $514.2 , 10% Property Tax, $1,791.7 , 34% State General Fund, $2,852.3 , 54% in millions Specific Ownership, $132.7 , 2% Compare FY2012-13 Appropriation to FY2013-14 Budget Request 2012-13 Original Appropriation 2013-14 Request Change State Share $3,366,460,619 $3,562,461,024 $196,000,405 Local Property Tax $1,791,693,618 $1,804,194,617 $12,500,999 $132,730,650 $132,730,650 $0 $5,290,884,887 $5,499,386,291 $208,501,404 Specific Ownership Tax Total State of Colorado Total Program Funding in millions Gaps represent rescissions and legislative actions. $6,000.0 Gap represents negative factor of 15.60% or $1.01 Billion $5,000.0 The actual funded Total Program has declined 1.5% from the high in 2009-10. $4,000.0 $3,000.0 $2,000.0 $1,000.0 $000.0 2008-09 Actual 2009-10 Actual 2010-11 Actual 2011-12 Actual 2012-13 Final Budget 2013-14 Governor's Budget Request Total Program Prior to Legislative Actions $5,354.8 $5,717.3 $5,822.3 $6,006.9 $6,302.4 $6,510.9 Total Program Less Rescissions /Legislative Actions $5,347.3 $5,586.1 $5,439.7 $5,232.4 $5,290.9 $5,499.4 2012-13 Appropriated Total Program Funding by Component, With and Without Negative Factor At-Risk, $303 All Other Factors, $608 Other, $126 Size, $273 COL, $917 Negative Factor $1,012 Base, $4.683 Total Program Funding: $6.302 billion Iin millions Base, $4.683 Total Program Funding: $5.291 billion Hold-Harmless Kindergarten Funding Governor’s proposal eliminates this funding $6.9 million 59 districts Funding used to increase supplemental full-day kindergarten factor .08 to .097 Kindergarten counted as .597 for 2013-14 All districts Early Education Funding Focus on expanding ECE opportunities to at -risk students Transfer of $70 per funded at-risk student within the district’s books Transfer optional for districts with +/- 10% of 200 Similar to previous requirement of transfer to Capital Reserve/Risk Management Financial Policies and Procedures Committee will be utilized to determine best method of recording Quality Teacher Pipeline $3.64 per funded student withheld from all districts Creates $3.0 million to fund initiative Provides incentive payments to teachers working in hard to serve rural districts or high poverty areas FY2013-14 Budget Request Actual Funded Total Program* Change from Prior Year Cumulative Change Funded Pupils Average Per Pupil Funding 2008-09 Actual $5,347,325,784 NA NA 778,136 $6,872 2009-10 Actual $5,586,087,039 $238,761,255 $238,761,255 789,497 $7,076 2010-11 Actual $5,439,939,345 ($146,147,693) $92,613,561 798,600 $6,812 2011-12 Actual $5,232,447,624 ($207,491,722) ($114,878,160) 808,195 $6,474 2012-13 Appropriation $5,290,884,887 $58,437,263 ($56,440,897) 817,221 $6,474 2013-14 Governor’s Budget Request $5,499,386,291 $208,501,404 $152,060,507 825,813 $6,659 3.94% 3.94% 1.05% 2.86% % Change from Prior Year *includes effects of rescissions and legislative actions NA General Planning Recommend reviewing Property Tax Collections Is your percentage of collections remaining strong? Is it declining or increasing? Delinquencies? Remember – the State assumes 100% collections when setting Total Program If you have less than 100% - your budget should reflect this Pupil Enrollment Upcoming Pupil Counts and Assessed Values Finalized in December Mill Levies & any adjustments to AVs January/February Supplemental Budget Request Submitted based revised counts, AVs, mills February Long Bill, School Finance Act 2013 Legislative Session Upcoming Training Sessions BEST Construction project delivery methods – Wednesday, November 28 th , 10:00AM Owner’s representatives – December, TBA Questions?