NOTE:  This bill has been prepared for the signature of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
      history, or the Session Laws.
      
      
      SENATE BILL 11-230
      
      
      BY SENATOR(S) Bacon, Harvey, King K., Lundberg, Mitchell;
      also REPRESENTATIVE(S) Massey, Casso, Conti, Fields, Jones, Kagan,
      Labuda, Levy, Summers, Williams A., Wilson.
      
      
      Concerning the financing of public schools, and making an
           appropriation therefor.
      
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  Legislative declaration.  (1)  The general assembly
      hereby finds and declares that:
      
           (a)  For the 2010-11 budget year, the general assembly determined
      that stabilization of the state budget required a reduction in the annual
      appropriation to fund the state's share of total program funding for all
      districts and the funding for institute charter schools.  As a result, for the
      2010-11 budget year, the general assembly reduced the total program
      funding amount to five billion two hundred twenty-five million two hundred
      forty-four thousand eight hundred eighty-five dollars ($5,225,244,885).
      
           (b)  During the 2010 legislative session, the general assembly
      predicted that stabilization of the state budget for the 2011-12 budget year
      would again require a reduction in the annual appropriation to fund the
      state's share of total program funding for all districts and the funding for
      institute charter schools.  As a result, the general assembly determined that
      total program funding for the 2011-12 budget year would be five billion
      four hundred thirty-eight million two hundred ninety-five thousand eight
      hundred twenty-three dollars ($5,438,295,823).
      
           (c)  The general assembly has determined that stabilization of the
      state budget for the 2011-12 budget year requires a further reduction in the
      annual appropriation to fund the state's share of total program funding for
      all districts and the funding for institute charter schools than the reduction
      that was established during the 2010 legislative session.  As a result,
      through Senate Bill 11-230, enacted in 2011, the general assembly has
      reduced the amount of total program funding for the 2011-12 budget year
      by an additional two hundred twenty-seven million five hundred thousand
      dollars ($227,500,000) from the total program funding amount that was
      previously established for the 2011-12 budget year.
      
           (d)  The total program funding amount for the 2011-12 budget year,
      absent any reductions in funding by the general assembly and taking into
      consideration increased funding for inflation, predicted growth in pupil
      enrollment, predicted growth in the at-risk pupil population, predicted
      changes in assessed valuations, and the specific ownership tax from the
      prior year, would be approximately five billion nine hundred eighty-seven
      million one hundred nine thousand sixteen dollars ($5,987,109,016).  The
      actual total program funding amount for the 2011-12 budget year, after
      applying the required additional reduction to stabilize the state's budget, is
      five billion two hundred ten million seven hundred ninety-five thousand
      eight hundred twenty-three dollars ($5,210,795,823).  This results in a
      difference of seven hundred seventy-six million three hundred thirteen
      thousand one hundred ninety-three dollars ($776,313,193).
      
           (2)  The general assembly intends that the moneys transferred to the
      state public school fund pursuant to section 24-75-201.1 (1) (d) (XI.5),
      Colorado Revised Statutes, pursuant to Senate Bill 11-230, enacted in 2011,
      be available for appropriation during the 2011-12 budget year to account for
      mid-year changes in pupil enrollment and the at-risk pupil population and
      changes in assessed valuations and the specific ownership tax from the prior
      year.
      
           SECTION 2.  22-54-104 (5) (a), Colorado Revised Statutes, is
      amended BY THE ADDITION OF A NEW SUBPARAGRAPH to read:
      
           22-54-104.  District total program.  (5)  For purposes of the
      formulas used in this section:
      
           (a) (XVIII)  For the 2011-12 budget year, the statewide base
      per pupil funding shall be $5,634.77, which is an amount equal to
      $5,529.71 supplemented by $105.06 to account for inflation.
      
           SECTION 3.  The introductory portion to 22-54-104 (5) (g) (I) and
      22-54-104 (5) (g) (I) (B), Colorado Revised Statutes, as amended by Senate
      Bill 11-157, are amended to read:
      
           22-54-104.  District total program.  (5)  For purposes of the
      formulas used in this section:
      
           (g) (I)  For the 2010-11 and 2011-12 budget years budget year and
      each budget year thereafter, the general assembly determines that
      stabilization of the state budget requires a reduction in the amount of the
      annual appropriation to fund the state's share of total program funding for
      all districts and the funding for institute charter schools.  The department of
      education shall implement the reduction in total program funding through
      the application of a state budget stabilization negative factor as provided
      in this paragraph (g).  For the 2010-11 and 2011-12 budget years budget
      year and each budget year thereafter, the department of education
      and the staff of the legislative council shall determine, based on budget
      projections, the amount of such reduction to ensure the following:
      
           (B)  That, for the 2011-12 budget year, the sum of the total program
      funding for all districts, including the funding for institute charter schools,
      after application of the negative factor, is not less than five billion
      four hundred thirty-eight million two hundred ninety-five thousand eight
      hundred twenty-three dollars ($5,438,295,823) five billion two hundred
      ten million seven hundred ninety-five thousand eight hundred
      twenty-three dollars ($5,210,795,823); except that the department of
      education and the staff of the legislative council shall make mid-year
      revisions to replace projections with actual figures including, but not limited
      to, actual pupil enrollment, assessed valuations, and specific ownership tax
      revenue from the prior year, to determine any necessary changes in the
      amount of the reduction to maintain a total program funding amount for the
      2011-12 budget year that is equal to the total program funding amount
      as initially established pursuant to this sub-subparagraph (B).
      
           SECTION 4.  22-54-104 (5) (g) (II), (5) (g) (III), (5) (g) (IV), and
      (5) (g) (V), Colorado Revised Statutes, are amended to read:
      
           22-54-104.  District total program.  (5)  For purposes of the
      formulas used in this section:
      
           (g) (II)  For the 2010-11 and 2011-12 budget years budget year
      and each budget year thereafter, the department of education shall: 
      
           (A)  Calculate the state budget stabilization negative factor for the
      2010-11 and 2011-12 budget years applicable budget year by dividing
      the reduction in total program funding for the 2010-11 or 2011-12 budget
      year, as applicable budget year, as specified in subparagraph (I) of this
      paragraph (g), by the sum of the total program funding amounts of all
      districts as calculated pursuant to subsection (2) of this section,
      including the funding for institute charter schools, for the 2010-11 or
      2011-12 applicable budget year; as applicable; and
      
           (B)  Calculate each district's and each institute charter school's state
      budget stabilization reduction amount by multiplying the state budget
      stabilization negative factor by the district's total program funding
      calculated pursuant to subsection (2) of this section for the 2010-11 or
      2011-12 budget year, as applicable budget year for the district and for any
      institute charter school located within the district.
      
           (III)  For the 2010-11 and 2011-12 budget years budget year and
      each budget year thereafter, except as otherwise provided in
      subparagraphs (IV) and (V) of this paragraph (g), a district's total program
      shall be the greater of:
      
           (A)  The amount calculated pursuant to subsection (2) of this section
      for the 2010-11 or 2011-12 budget year, as applicable budget year,
      including funding for any institute charter school located within the district,
      minus the district's state budget stabilization reduction amount for the
      2010-11 or 2011-12 budget year, as applicable budget year; or
      
           (B)  An amount equal to the base per pupil funding amount specified
      in paragraph (a) of subsection (5) of this section for the 2010-11 or 2011-12
      applicable budget year, as applicable, multiplied by the district's funded
      pupil count for the 2010-11 or 2011-12 budget year, as applicable budget
      year.
      
           (IV)  For the 2010-11 and 2011-12 budget years budget year, and
      each budget year thereafter, the total program funding for a district
      that levies the number of mills calculated pursuant to section 22-54-106 (2)
      (a) (II) shall be the amount calculated pursuant to subsection (2) of this
      section for the 2010-11 or 2011-12 budget year, as applicable budget
      year.  Any such district shall use the revenues generated by the number of
      mills that the district levies pursuant to section 22-54-106 (2) (a) (II) to
      replace any categorical program support funds that the district would
      otherwise be eligible to receive from the state; except that the amount of
      categorical program support funds that the district is required to replace
      shall not exceed an amount equal to the district's state budget stabilization
      reduction amount.  The department shall use the amount of categorical
      program support funds replaced by property tax revenue pursuant to this
      subparagraph (IV) to make payments of categorical program support funds
      to eligible districts as specified in section 22-54-107 (4).
      
           (V)  For the 2010-11 and 2011-12 budget years budget year and
      each budget year thereafter, if a district levies the number of mills
      calculated pursuant to section 22-54-106 (2) (a) (I) and the district's state
      budget stabilization reduction amount exceeds the district's state share of
      total program funding, such district's total program funding shall be the
      amount calculated pursuant to subsection (2) of this section for the 2010-11
      or 2011-12 budget year, as applicable budget year, minus the district's
      state aid.  Any such district shall use the revenues generated by the number
      of mills that the district levies pursuant to section 22-54-106 (2) (a) (I) to
      replace any categorical program support funds that the district would
      otherwise be eligible to receive from the state; except that the amount of
      categorical program support funds that the district is required to replace
      shall not exceed an amount equal to the remainder of the district's state
      budget stabilization reduction amount after the reduction to the district's
      total program has been applied pursuant to this subparagraph (V).  The
      department of education shall use the amount of categorical program
      support funds replaced by property tax revenue pursuant to this
      subparagraph (V) to make payments of categorical program support funds
      to eligible districts as specified in section 22-54-107 (4).
      
           SECTION 5.  24-75-201.1 (1) (d) (XI.5), Colorado Revised
      Statutes, as enacted by Senate Bill 11-156, is amended to read:
      
           24-75-201.1.  Restriction on state appropriations - legislative
      declaration - definitions - repeal.  (1) (d)  Except as otherwise provided
      in paragraph (e) of this subsection (1), for each fiscal year, unrestricted
      general fund year-end balances shall be retained as a reserve in the
      following amounts:
      
           (XI.5)  For the fiscal year 2010-11, two and three-tenths percent of
      the amount appropriated for expenditure from the general fund for that
      fiscal year.  The additional amount of general fund moneys made available
      for appropriation by the reduction in the required reserve from four percent
      to two and three-tenths percent may be appropriated during the fiscal year
      2010-11 for any lawful purpose.  Notwithstanding any provision of law to
      the contrary, on the date on which the state controller publishes
      the comprehensive annual financial report of the state for the
      fiscal year 2010-11, the state treasurer shall transfer the general fund
      surplus designated in accordance with section 24-75-201 (1) for the fiscal
      year 2010-11, less which represents the unrestricted general fund
      balance after the applicable amount of reserve required pursuant to this
      subparagraph (XI.5), to the state education fund created in section 17 (4) of
      article IX of the state constitution.  Such transfer shall be made on the date
      on which the state controller publishes the comprehensive annual financial
      report of the state for the fiscal year 2010-11. as follows:
      
           (A)  Except as otherwise provided in sub-subparagraph (B) of
      this subparagraph (XI.5), the general fund surplus shall be
      transferred to the state education fund created in section 17 (4)
      of article IX of the state constitution.
      
           (B)  An amount equal to the additional estimated revenue
      shall be transferred to the state public school fund created in
      section 22-54-114, C.R.S.; except that the transfer pursuant to this
      sub-subparagraph (B) shall not exceed sixty-seven million five
      hundred thousand dollars.  For purposes of this sub-subparagraph
      (B), "additional estimated revenue" means the amount by which the
      June 2011 estimate of general fund revenue prepared by the office
      of state planning and budgeting for the 2010-11 fiscal year
      exceeds the March 2011 estimate of general fund revenue
      prepared by the office of state planning and budgeting for the
      2010-11 fiscal year.
      
           SECTION 6.  22-54-114, Colorado Revised Statutes, is amended
      BY THE ADDITION OF A NEW SUBSECTION to read:
      
           22-54-114.  State public school fund.  (2.7)  The general
      assembly intends that the moneys transferred to the state public
      school fund pursuant to section 24-75-201.1 (1) (d) (XI.5), C.R.S.,
      pursuant to Senate Bill 11-230, enacted in 2011, be available for
      appropriation during the 2011-12 budget year to account for
      mid-year changes in pupil enrollment and the at-risk pupil
      population and changes in assessed valuations and the specific
      ownership tax from the prior year.
      
           SECTION 7.  22-42-104, Colorado Revised Statutes, is amended
      BY THE ADDITION OF A NEW SUBSECTION to read:
      
           22-42-104.  Limit of bonded indebtedness.  (1.2)  For bonded
      indebtedness issued after June 1, 2011, the valuation for
      assessment of taxable property for the purposes of this section
      shall be the valuation for assessment of taxable property in the
      district as it existed on the December 10 prior to the date of
      issuance of the bonded indebtedness.  The county assessor to the
      board of county commissioners shall report the valuation for
      assessment of taxable property in the district to the district and
      the department of education on each December 10.
      
           SECTION 8.  22-41-102 (3) (b), Colorado Revised Statutes, is
      amended to read:
      
           22-41-102.  Fund inviolate.  (3) (b)  For the 2008-09 2009-10, and
      2010-11 state fiscal years year through the 2012-13 state fiscal year,
      all interest or income earned on the investment of the moneys in the public
      school fund not credited to the public school capital construction assistance
      fund created in section 22-43.7-104 (1) pursuant to section 22-43.7-104 (2)
      (b) (I) shall be transferred to the state public school fund created in section
      22-54-114.
      
           SECTION 9.  36-1-116 (1) (a) (II) (B), Colorado Revised Statutes,
      is amended to read:
      
           36-1-116.  Disposition of rentals, royalties, and timber sale
      proceeds.  (1) (a) (II) (B)  For the 2008-09 2009-10, and 2010-11 state
      fiscal years year through the 2012-13 state fiscal year, all proceeds
      received by the state for the sale of timber on public school lands, rental
      payments for the use and occupation of the surface of said lands, and rentals
      or lease payments for sand, gravel, clay, stone, coal, oil, gas, geothermal
      resources, gold, silver, or other minerals on said lands other than proceeds,
      rentals, and payments allocated to the state land board trust administration
      fund pursuant to section 36-1-145 (3) or credited to the public school capital
      construction assistance fund created in section 22-43.7-104 (1), C.R.S.,
      pursuant to section 22-43.7-104 (2) (b) (I), C.R.S., shall be transferred to
      the state public school fund created in section 22-54-114, C.R.S.
      
           SECTION 10.  36-1-116 (1) (c), Colorado Revised Statutes, is
      amended to read:
      
           36-1-116.  Disposition of rentals, royalties, and timber sale
      proceeds.  (1) (c)  For the 2008-09 2009-10, and 2010-11 state fiscal years
      year through the 2012-13 state fiscal year, royalties and other
      payments for the depletion or extraction of a natural resource on public
      school lands not allocated to the state land board trust administration fund
      pursuant to section 36-1-145 (3), not credited to the public school capital
      construction assistance fund created in section 22-43.7-104 (1), C.R.S.,
      pursuant to section 22-43.7-104 (2) (b) (I), C.R.S., and not credited as
      specified in subparagraph (II) of paragraph (b) of this subsection (1) shall
      be transferred to the state public school fund created in section 22-54-114,
      C.R.S.
      
           SECTION 11.  39-29-109.5 (2), Colorado Revised Statutes, is
      amended to read:
      
           39-29-109.5.  Interest differential - public school energy
      efficiency fund - creation - uses - definitions - repeal.  (2)  On December
      1, 2007, and the first day of every third month thereafter up to and including
      September 1, 2010 September 1, 2015, the legislative council staff shall
      calculate the interest differential earned during the prior calendar quarter
      and notify the state treasurer of such amount.  Upon receiving notice, the
      treasurer shall transfer an amount equal to the interest differential from the
      severance tax funds to the public school energy efficiency fund, which is
      hereby created in the state treasury; except that the total transfer to the fund
      for any state fiscal year shall not exceed one million five hundred thousand
      dollars.  Moneys in the fund are hereby continuously appropriated to the
      governor's energy office for the purposes set forth in subsection (3) of this
      section.  All income and interest derived from the deposit and investment
      of the moneys in the fund shall be credited to the fund.
      
           SECTION 12.  22-54-104 (4.5) (c) (III), Colorado Revised Statutes,
      is amended to read:
      
           22-54-104.  District total program.  (4.5)  A district's on-line
      funding shall be determined in accordance with the following formulas:
      
           (c) (III)  In any budget year in which the provisions of paragraph (g)
      of subsection (5) of this section apply, the department of education shall
      calculate a district's state budget stabilization reduction amount for on-line
      funding by multiplying the state budget stabilization negative factor
      calculated for the applicable budget year pursuant to sub-subparagraph (A)
      of subparagraph (II) of paragraph (g) of subsection (5) of this section by the
      district's on-line funding calculated pursuant to subparagraph (II) of this
      paragraph (c) for the applicable budget year.  A district's on-line funding for
      the applicable budget year shall be the greater of:
      
           (A)  The district's on-line funding amount calculated for the
      applicable budget year pursuant to subparagraph (II) of this paragraph (c)
      minus the district's state budget stabilization reduction amount calculated
      for the applicable budget year pursuant to this subparagraph (III) for on-line
      funding; or
      
           (B)  An amount equal to the base per pupil funding amount specified
      in paragraph (a) of subsection (5) of this section for the applicable budget
      year multiplied by the district's on-line pupil enrollment for the applicable
      budget year.
      
           SECTION 13.  22-54-104 (4.7) (c), Colorado Revised Statutes, is
      amended to read:
      
           22-54-104.  District total program.  (4.7) (c)  In any budget year in
      which the provisions of paragraph (g) of subsection (5) of this section
      apply, the department of education shall calculate a district's state budget
      stabilization reduction amount for ASCENT program funding by
      multiplying the state budget stabilization negative factor calculated for the
      applicable budget year pursuant to sub-subparagraph (A) of subparagraph
      (II) of paragraph (g) of subsection (5) of this section by the amount of the
      district's ASCENT program funding calculated pursuant to paragraph (b) of
      this subsection (4.7) for the applicable budget year.  A district's ASCENT
      program funding for the applicable budget year shall be the greater of:
      
           (I)  The district's ASCENT program funding calculated for the
      applicable budget year pursuant to paragraph (b) of this subsection (4.7)
      minus the district's state budget stabilization reduction amount calculated
      for the applicable budget year pursuant to this paragraph (c) for ASCENT
      program funding; or
      
           (II)  An amount equal to the base per pupil funding amount specified
      in paragraph (a) of subsection (5) of this section for the applicable budget
      year multiplied by the district's ASCENT program pupil enrollment for the
      applicable budget year.
      
           SECTION 14.  Appropriation - adjustments in 2011 long bill.
      For the implementation of this act, appropriations made in the annual
      general appropriation act to the department of education for the fiscal year
      beginning July 1, 2011 shall be adjusted as follows:
      
           (1)  The appropriation for management and administration, for state
      charter school institute administration, oversight, and management, is
      decreased by four hundred eighty-one dollars ($481).  Said sum shall be
      from reappropriated funds transferred from the assistance to public schools,
      public school finance, state share of districts' total program funding line
      item appropriation.
      
           (2)  The general fund appropriation for assistance to public schools,
      public school finance, for the state share of districts' total program funding,
      is decreased by two hundred eighty-four million eight hundred ten thousand
      four hundred sixty-five dollars ($284,810,465).
      
           (3)  The cash funds appropriation for assistance to public schools,
      public school finance, for the state share of districts' total program funding,
      is increased by thirty-six million dollars ($36,000,000).  Said sum shall be
      from the state public school fund created in section 22-54-114 (1), Colorado
      Revised Statutes.
      
           (4)  The cash funds appropriation for assistance to public schools,
      public school finance, for the state share of districts' total program funding,
      is increased by twenty-two million three hundred seventy-nine thousand
      eight hundred eighty-five dollars ($22,379,885).  Said sum shall be from the
      state education fund created in section 17 (4) (a) of article IX of the State
      Constitution.
      
           (5)  The cash funds appropriation for assistance to public schools,
      public school finance, for hold-harmless full-day kindergarten funding, is
      decreased by three hundred twenty-nine thousand eight hundred
      ninety-seven dollars ($329,897).  Said sum shall be from the state education
      fund created in section 17 (4) (a) of article IX of the State Constitution.
      
           (6)  The cash funds appropriation for assistance to public schools,
      grant programs, distributions, and other assistance, for facility school
      funding, is decreased by six hundred fifty-three thousand dollars
      ($653,000).  Said sum shall be from the state education fund created in
      section 17 (4) (a) of article IX of the State Constitution.
      
           (7)  The general fund appropriation for the school for the deaf and
      the blind, for personal services, is increased by fifty-seven thousand three
      hundred thirty-five dollars ($57,335).
      
           (8)  The appropriation for the school for the deaf and the blind, for
      personal services, is decreased by fifty-seven thousand three hundred
      thirty-five dollars ($57,335).  Said sum shall be from reappropriated funds
      transferred from the assistance to public schools, grant programs,
      distributions, and other assistance, facility school funding line item
      appropriation.
      
           SECTION 15.  Appropriation - adjustments in 2011 long bill.
      For the implementation of this act, appropriations made in the annual
      general appropriation act to the department of education for the fiscal year
      beginning July 1, 2011 shall be adjusted as follows:
      
           (1)  The general fund appropriation for assistance to public schools,
      public school finance, for the state share of districts' total program funding,
      is decreased by one hundred seventy-five million nine hundred forty-six
      thousand eight hundred seventy dollars ($175,946,870).
      
           (2)  The cash funds appropriation for assistance to public schools,
      public school finance, for the state share of districts' total program funding,
      is increased by one hundred seventy-five million nine hundred forty-six
      thousand eight hundred seventy dollars ($175,946,870).  Said sum shall be
      from the state education fund created in section 17 (4) (a) of article IX of
      the State Constitution.
      
           SECTION 16.  The appropriation to the department of education for
      the fiscal year beginning July 1, 2011, as enacted in Part III (2) (A)
      Footnote 7 of section 2 of SB 11-209, is amended to read:
      
           Section 2.  Appropriation.
      
      7    Department of Education, Assistance to Public Schools,
           Public School Finance, State Share of Districts' Total
           Program Funding -- It is the intent of the General Assembly
           that the Department of Education be authorized to utilize up
           to $4,647,614 $4,433,980 of this appropriation to fund
           qualified students designated as Accelerating Students
           Through Concurrent Enrollment (ASCENT) Program
           participants as authorized pursuant to Section 22-35-108,
           C.R.S.  This amount is calculated based on an estimated 753
           participants funded at a rate of $6,172.13 $5,888.42 per FTE
           pursuant to Section 22-54-104 (4.7), C.R.S.
      
           SECTION 17.  Safety clause.  The general assembly hereby finds,
      determines, and declares that this act is necessary for the immediate
      preservation of the public peace, health, and safety.
      
      
      
      
      ____________________________  ____________________________
      Brandon C. Shaffer                      Frank McNulty
      PRESIDENT OF                     SPEAKER OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
      
      
      ____________________________  ____________________________
      Cindi L. Markwell                      Marilyn Eddins
      SECRETARY OF                 CHIEF CLERK OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    John W. Hickenlooper
                                    GOVERNOR OF THE STATE OF COLORADO