Leanne Emm
Assistant Commissioner
303-866-6202 emm_l@cde.state.co.us

• Produced by the Office of the State Auditor
• One district – three warning indicators
• Five districts – two warning indicators
• Two or more indicators – districts provide information incorporated into report
• Present to Legislative Audit Committee
– August 22nd

• “Rescissions with Per Pupil Funding” spreadsheet posted on the CDE website
• ADE financial data & allocations to Charters and CPP

Two new questions - Financial Transparency
C.R.S. 22-44-301 through 304
• Has the school district complied with all of the reporting requirements of the Public School
Financial Transparency Act?
• Has the school district’s charter school(s) complied with all the reporting requirements of the Public
School Financial Transparency Act?

HB 10-1036 requires each “Local Education
Provider” (LEP) to post financial information online, 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; and
• An Institute Charter School.

Commencing July 1, 2010:
• District Adopted Budget for FY09-10 and FY10-11
• District Financial Audit
• Quarterly Financial Statements
• Salary Schedules or Policies
Additionally Commencing July 1, 2011:
• Accounts Payable Check Registers
• Credit, Debit and Purchase Card Statements

Additionally Commencing July 1, 2012:
• Investment Performance Reports
Personal information relating to payroll, including but not limited to payroll deductions or contributions, or any other information that is confidential or otherwise protected from public disclosure is not required to be posted.

– Available online and updated within sixty days after the completion or receipt of the applicable report, statement, or document
– Maintain the prior two budget years’ financial information on-line until the end of the current budget year
– CDE Website – template as prescribed by HB
10-1036 http://www.cde.state.co.us/cdefinance/sfFinancialTransparency.htm

State of Colorado
General Fund Revenue - $7.12 Billion
2011-2012
Other
3,4%
Excise Taxes
30,7%
Income Taxes
65,9%
Source: 2011/2012 Budget in Brief; Joint Budget Committee

State of Colorado
General Fund - $7.01 Billion
General
Government
0.7%
2011-2012
Other
3,5%
Human
Services/Health
Care
32,6%
Education (K-12)
40.4%
$2.83B
Source: 2011/2012 Budget in Brief; Joint Budget Committee
Higher Education
8,9%
Corrections/
Judicial
13.9%

Federal, State and Local Funding for Public Schools
2011-2012 $6.1 Billion
School Finance
Act
$5,212.7B, 85%
Categorical
Programs
$406.1M, 7%
Other Federal
Funds
$434.5M, 7%
Other State
Funds
$84.1M, 1%

2011-12
Total Program Funding - School Finance Act
$5,212.7 Billion
Other State
Funds,
$664.50M, 13%
Property Tax,
$1,738.52M,
33%
State General
Fund,
$2,671.85M, 51%
Specific
Ownership,
$137.83M, 3%

• 2011-2012
– Base Funding - $5,634.77
• Increase of $105.06 from prior year
• Inflation of 1.9%
• Amendment 23 1% is no longer in effect in 2011/2012

• Base funding is adjusted by factors
– Cost of Living
– Personnel costs
– Size of district
– At-risk funding
– On-Line funding
Creates Total Program
• 2011-2012
– SB230 - Negative Factor of 12.97% applied to Total Program

School Districts by Pupil Count

$9 000
$8 000
$7 000
$6 000
$5 000
$4 000
$3 000
$2 000
$1 000
$0
Per Pupil Funding Calculation
Two Examples
Size
Cost of Living
Base Funding
District A District B

Appropriated Total Program Funding by Component,
With and Without Negative Factor
Size;
$261
At-Risk;
$284
Other;
$120
All Other
Factors;
$759
COL;
$868
Negative
Factor
($774)
Base;
$4 454
Base;
$4 454
Total Program Funding:
$5,987.1 million
Total Program Funding:
$5,212.7 million

Federal, State and Local Funding for Public Schools
2011-2012 $6.1 Billion
School Finance
Act
$5,212.7B, 85%
Categorical
Programs
$406.1M, 7%
Other Federal
Funds
$434.5M, 7%
Other State
Funds
$84.1M, 1%

Categorical Programs
2011-2012 = $406.1 Million
CTE; $23,58
GT; $9,20
Expelled; $7,49
Comprehensive
Health; $1,01
Small
Attendance; $0,96
ELPA; $24,38
Transportation;
$50,83
ECEA; $288,63

Other; $41,0
Dropout; $3,0
Federal Funds
2011-2012 = $434.55 Million
Title I; $197,2
Nutrition;
$156,5
Title II; $36,8

Nutrition; $4,2
Read-to-
Achieve; $4,4
School
Counselor
Corps; $5,0
Hold-harmless
Full-day K, $7.2
Other State Funds
2011-2012 = $84.1 Million
Other State;
$1,4
Capital
Construction/
Facilities,
$35.04
School For Deaf and Blind; $11,8
Facililty
Schools; $15,1

• Legislative Council and OSPB
– Both better than the March 2011 forecast.
• $67.5 million from SB11-230 potentially available
• Solid evidence of recovery – still evidence of struggles – slow recovery

• Supplemental appropriation process – next legislative session
• Changes in enrollment, at-risk, assessed values and specific ownership tax
• Not available until appropriated!

• Nationally, 8.8 million jobs lost between
January 2008 and February 2010
• Jobs added: 1.8 million
• Debt, housing, European economy, Japan, monetary policy and the Middle East will impact the recovery.

• Tight credit for businesses and consumers.
• High debt and unemployment
• Uncertainty in financial and housing markets.

OSPB
Inflation Estimate
Potential Growth in Total Program
3.5%
$261 million
Legislative
Council
2.6%
$207 million
Late February 2012 – actual inflation

$6 000,0
$5 000,0
$4 000,0
$3 000,0
$2 000,0
$1 000,0
$000,0
Fully Funded Total Program
Total Program Less Rescissions
/Legislative Actions
2008-09
Actual
$5 354,8
$5 347,3
State of Colorado
Total Program Funding in millions
2009-10
Actual
$5 717,3
$5 586,1
2010-11
Actual
$5 822,3
$5 439,9
Gaps represent rescissions
2011-12
ESTIMATE
$5 999,9
$5 223,8
2012-13
PROJECTION
OSPB - 3.5%
Inflation
$6 248,5

• Potential is high for further reductions
• Growth in students and caseloads continue to pressure the General Fund
• State Education Fund balance diminishing

$600,0
$500,0
$400,0
$300,0
$200,0
$100,0
$0,0
Revenues
Expenditures
Fund Balance
FY2007-08
$424,9
$301,5
$349,3
State Education Fund in millions
FY2008-09
$475,7
$494,0
$331,0
FY2009-10
$339,5
$482,3
$188,2
FY2010-11 Estimate
$376,9
$423,4
$141,7

•Changes the date in which the limit to bonded indebtness is determined
•Mainly benefits those districts that are hitting their limit and is declining in assessed value
•Changes the date to measure the limit to previous December valuation

• Pilot program authorized by HB10-1183 to encourage school districts and charter schools to collect data that will be used to compare the effects of alternative school finance funding models with those of the current funding method.
• Districts/charter schools apply to participate – applications available in August
• Additional information and the application may be accessed on the CDE website: http://www.cde.state.co.us/index_finance.htm

• Student October Webinar Trainings from 9:30 –
11:30 on the following dates.
– Tuesday, August 9 th
– Wednesday, August 17 th
– Monday, August 22 nd
– Friday, September 2 nd
– Wednesday, September 7 th
• The PSFU Audit Office will be providing resources and answering questions about pupil count audits.
• You may register for one of the trainings at:
– http://www.cde.state.co.us/scripts/StuOctWorkshop11/start.asp

• On-line Pupil Count Webinar
– Wednesday, August 24 th at 10:00 am
• Chart of Account Changes for FY2011-12 and FPP
Handbook Update Webinar
– October timeframe
– Assuming the FPP Handbook changes have been approved by the FPP committee by this time

• Possible Federal requirement for individual charter schools to have a separate independent annual financial audit performed and issued to its authorizer and the Department.
• The Governmental Accounting Standards Board
(GASB) has recently issued exposure drafts related to “Pension Accounting and Financial
Reporting”. These exposure drafts may impact the financial reporting and disclosures for school districts. If you have concerns, the GASB requests comments by September 30, 2011.