Final
Report from the School Finance Task Force
SCHOOL FINANCE SYSTEM
Votes:
Action Taken:
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01:34 PM -- Report from the School Finance Task Force
Senator Windels called the committee back to order.
01:35 PM
Scott Murphy, chairman, School Finance Task Force came to the table with his colleagues, Jane Urschel, Tracie Rainey, Nina Lopez, Glenn Gustafson, and Karen Middleton, to discuss the Final Report of the School Finance Task Force (Attachment I). Mr. Murphy provided background regarding the task force and its members.
01:39 PM
Ms. Urschel introduced the concepts of the report. Remarking that consensus on the issue of school finance is difficult, she referred the committee to the introduction of the report, noting that the task force agreed on certain principles. She commented that the current school finance system is not adequate and spoke to the work of the task force.
01:43 PM
Ms. Rainey began presentation of the recommendations of the task force, starting with recommendation number one, recommending that the General Assembly revise the 1994 School Finance Act. She provided historical perspective on Colorado's school finance system, noting that Colorado has lost ground on school finance in the last decade. She noted that the task force had looked at a number of factors, including the concept of adequacy.
01:49 PM
Ms. Rainey responded to questions from Representative Pommer regarding base funding. Ms. Rainey continued her presentation commenting that the task force discussed a base funding amount per pupil that would ensure adequacy. She spoke to the work of the School Finance Project. Adjustments to total program funding are recommended, she said. She began by discussing district size and the definition of at-risk. Senator Anderson remarked on the needs of different districts and asked for clarification of the task force's recommendation for expansion of the definition of at-risk. Ms. Rainey responded to a question from Senator Windels seeking further clarification.
01:59 PM
Senator Anderson further commented on defining at-risk. Ms. Rainey responded to further questions and comments from Representative King and Senator Spence. Ms. Urschel provided background about indicators of at-risk and the task force's discussion of at-risk. Representative Merrifield commented on low academic achievement as an indicator of risk. Senator Anderson commented that free lunch was used because it is an audited program. She suggested that increasing the percentage may be a better solution than tying at-risk to programs.
02:05 PM
Representative Pommer asked further questions about the base and how that number would be determined. Ms. Rainey responded giving examples of adjustments to the base. She responded to follow-up questions from Representative Pommer. She noted that the task force was recommending that the General Assembly look at these issues for revision, but was not suggesting a new system. Mr. Murphy provided further clarification, noting that the task force was recommending that factors such as special education and transportation be worked into the base, instead of being separate. Mr. Murphy provided further clarification in response to an inquiry from Senator Windels.
02:13 PM
Mr. Murphy responded to follow-up questions from Representative Pommer. Representative King asked further questions regarding categorical funding and the task force recommendation that certain factors be moved from categoricals to be part of the base. Ms. Rainey responded to Representative King's inquiry, noting that the task force does not have all of the answers regarding constitutional questions. Senator Windels asked about categoricals in relation to Amendment 23. Ms. Rainey responded that a list of categoricals is included in the text of Amendment 23. Representative King read the list of categoricals from Amendment 23. Senator Windels and Representative King discussed categoricals, total program, and Amendment 23.
02:18 PM
Representative Pommer and Representative King remarked further on the categoricals.
02:20 PM
Ms. Rainey continued her presentation to the committee speaking to the recommendation that special education funding be part of total program, noting that students with the most severe needs might need dollars outside the formula. She went on to discuss gifted and talented funding and the cost-of-living factor. Senator Anderson asked if the task force had discussed what would happen if a district's cost of living decreased and whether the district's cost-of-living factor should decrease. Ms. Rainey responded that the task force had not discussed that issue, but had discussed the current methodology. Senator Anderson remarked that she feels the task force must address that issue. Mr. Murphy noted that there was difference of opinion, and that time constraints limited the discussion. Representative King made further inquiries about the task force's special education recommendation to which Ms. Rainey responded.
02:27 PM
Ms. Urschel remarked further on special education funding models. Mr. Murphy responded to follow-up questions from Representative King. Ms. Rainey continued her presentation speaking to transportation, small attendance centers, and kindergarten. Ms. Rainey responded to questions from Representative Penry regarding mandatory full-day kindergarten. She continued, discussing preschool and public school choice.
02:34 PM
Ms. Rainey went on to discuss other considerations, including the student count, the inflation factor, and the current limitation on school districts seeking additional local revenues. She responded to a question from Representative King regarding local revenues. She continued, discussing a recommendation of analysis of the adequacy of the funding formula every three years. Senator Tupa asked about the idea of changing the school finance act every three years. Ms. Rainey responded, noting that the task force recommended an analysis, not necessarily a change. Ms. Rainey responded to questions from Representative King regarding priority of the task force recommendations. Senator Tupa remarked on the lack of available money and asked if the task force would meet before legislation might be considered to prioritize items that could be accomplished without a cost.
02:44 PM
Representative Merrifield asked for clarification which Senator Windels provided. Mr. Murphy remarked on the charge of the task force. Representative King asked if the task force addressed closing the achievement gap. Ms. Rainey responded.
02:46 PM
Ms. Lopez noted that the task force had a huge undertaking and a very small amount of time and that some stakeholders may not have been well represented at the table. She went on to discuss capital funding. She noted that the task force recommended that capital funding be included in school finance funding, but not be part of total program. The task force identified three capital priorities: an assessment of the actual capital needs of public schools; addressing the backlog of current health and safety capital needs; and providing future revenue for ongoing capital needs. Ms. Lopez identified several other considerations, including: the need for a consistent definition of capital; a standard method to identify and assess minimum adequacy standards; funding based upon educational needs of students at each site; funding and laws should recognize emerging and unique learning environments; maximizing efficiencies in funding for capital projects; and distributing grants for capital projects through a competitive process accompanied by adequate technical assistance.
02:56 PM
Ms. Lopez responded to questions from Senator Anderson, as did Mr. Murphy. Ms. Lopez responded to a question from Senator Windels. Mr. Murphy commented on school inspections by fire departments and boiler inspectors. Representative King asked about the bonding limit on school districts. Mr. Murphy responded that the task force had not addressed that issue.
03:01 PM
Ms. Middleton spoke to the committee on the concept of P-16. The task force recommended the formation of a P-16+ Council and identified some issues such a council might address. Ms. Middleton responded to questions from Senator Bacon.
03:04 PM
Mr. Murphy remarked that the task force had given some thought to potential funding sources. Mr. Gustafson presented the task force's ideas, noting that the task force knows many of these ideas cannot be implemented immediately. The recommendations were in two categories: issues requiring action from the General Assembly and issues requiring a vote of the people. He described the ideas. Mr. Gustafson responded to questions from Representative King regarding Medicaid reimbursement for special education costs. Senator Anderson provided further information on Medicaid reimbursement of special education costs. Mr. Murphy and Senator Windels commented as well. Representative King asked if any BOCES are seeking Medicaid reimbursement. Mr. Murphy replied that they are and Senator Windels provided further clarification.
03:13 PM
Representative King asked follow-up questions in regard to Medicaid reimbursement, to which Mr. Gustafson and Mr. Murphy replied. Mr. Gustafson continued his presentation, describing issues that would have to be submitted to the voters.
03:19 PM
Mr. Gustafson and Ms. Urschel responded to a question from Representative Merrifield regarding the severance tax. Mr. Gustafson answered a question from Representative Pommer concerning income tax. Senator Anderson commented on Representative Pommer's question. Representative King asked about a moral obligation program, Mr. Gustafson responded that the task force had not discussed that issue. Mr. Murphy responded to a question from Senator Windels regarding insurance and capital set asides. Mr. Gustafson provided additional clarification.
03:24 PM
Senator Spence asked about transportation costs given high fuel costs that were not anticipated six months ago. Mr. Gustafson responded, noting a 10 percent increase in costs in his district, District 11. Senator Spence asked a follow-up question to which Mr. Gustafson responded. Mr. Murphy commented on the issue as well. Senator Windels asked Representative Benefield to describe her bill regarding transportation costs.
03:31 PM
Senator Tupa asked for additional clarification of Representative Benefield's bill. Representative Benefield made further remarks about authorization for school districts to impose a transportation fee. Representative Pommer asked Mr. Gustafson about pooling and self-insurance. Mr. Murphy noted, in response to a question from Senator Windels, that the task force had held its final meeting. He spoke to the recommendations and work of the task force.
03:37 PM
Senator Windels thanked the task force for its work and recommendations. She said that legislative recommendations in concept should be turned in to staff prior to the September 27 meeting of the committee. Senator Windels mentioned that federal funding would be discussed at the September 27 meeting, prior to discussion of legislation.
03:42 PM -- Committee Discussion
Committee discussion of possible legislation ensued. Senator Tupa remarked that he's interested in the P-16 task force. Representative Merrifield mentioned preschool and full-day kindergarten.
03:47 PM
Committee discussion of legislation continued. Senator Anderson said the committee should look at the uniform mill levy. Representative King expressed interest in insurance pool for special education and the issue of a moral obligation program for charter schools and small districts. In addition, he mentioned the chart of accounts and data.
03:54 PM
Senator Tupa mentioned online learning and public school choice. Senator Windels listed several topics for legislation discussion, including: recommendations for increased flexibility for investments from the school trust lands; online education issues including allowing enrollment in online and brick and mortar schools and shared per pupil revenue, as well as defining "substantially completed" coursework; the issue of special education costs and charter schools, specifically provisions for excess cost payment; establishing a high risk insurance pool; restoring support for BOCES for organizational activities and grant writing; and freezing mill levies. Representative King mentioned the issue of children not previously enrolled in schools not being allowed to enroll in online programs and at-risk students not achieving full-year growth each school year.
03:59 PM
Senator Windels asked members of the committee to email additional legislation ideas to staff.
04:00 PM
The committee adjourned.