Second Regular Session Sixty-ninth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 14-0326.02 Brita Darling x2241 HOUSE BILL 14-1147 HOUSE SPONSORSHIP Szabo, Buck, Conti, Coram, DelGrosso, Dore, Gardner, Gerou, Holbert, Humphrey, Joshi, Landgraf, Lawrence, McNulty, Murray, Navarro, Nordberg, Priola, Rankin, Saine, Scott, Sonnenberg, Stephens, Swalm, Wilson, Wright SENATE SPONSORSHIP Renfroe, House Committees Senate Committees Education A BILL FOR AN ACT Concerning increasing funding for charter school capital construction. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) For the 2014-15 budget year and each budget year thereafter, the bill sets $25 million as the amount of state education fund moneys distributed to eligible district charter schools and eligible institute charter schools to offset capital construction costs. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Legislative declaration. (1) The general assembly finds and determines that: (a) Every charter school in Colorado is authorized and opens its doors to students as a new public school, which requires a safe and adequate facility to educate the children of families that choose to attend the school. Each one of these schools, however, is responsible for finding and financing their buildings out of general operating dollars, unless they have a cooperative authorizer that works with them to find a facility. (b) Each dollar that a charter school is forced to expend out of its per pupil allocation to pay facilities debt service is one less dollar going into the classroom to pay for direct instruction for students; (c) A 2008 report found that Colorado charter schools pay, on average, $480 per pupil to pay for facilities costs. This data is dated, and evidence confirms that this number has grown in recent years, being an average of $606 in 2012 as school funding has decreased. Yet debt service has remained relatively static. (d) It is an indisputable fact that facilities debt service is the most significant factor leading to funding disparities between traditional public and charter public schools in Colorado; (e) The general assembly has recognized this disparity and created a charter school capital construction fund in 2001 to provide per pupil funding for capital construction to certain qualified charter schools. Moneys are appropriated each year from the state education fund and are allocated among charter schools on a per pupil basis; except that any charter school operating in a school district facility without ongoing financial obligations to repay outstanding costs of new construction undertaken for the charter school's benefit receives one-half the amount per pupil that other charter schools receive. (f) Originally, the amount that each charter school received was calculated as 130% of the minimum per pupil capital reserve amount that each district is required to budget; for FY 2001-2002, qualified charter schools received $322 per pupil. As such, the amount of funding was originally required to increase each year based on the number of qualified charter schools, the number of pupils attending such schools, and inflationary increases in the minimum per pupil capital reserve amount. (g) Subsequently, the general assembly modified this program to specify, in statute, the amount appropriated for the program, which has not kept up with charter school student enrollments and has resulted in a steady reduction in the per pupil allocation; (h) While the program has had its funding increased the last two years, years of stagnant funding combined with charter school enrollments has resulted in the current allocation averaging to $92.51 per pupil, 71% less than the original intent of the program. (2) The general assembly recognizes the importance of this program for improving funding equity between public charter and traditional schools in Colorado, as well as ensuring that more per pupil funding dollars are able to provide for teacher salaries and direct instruction. (3) As such, the general assembly finds that the current funding level is substandard and wants to reduce this disparity by increasing funding for charter school capital construction in order to meet the original intent of the program. SECTION 2. In Colorado Revised Statutes, 22-54-124, amend (3) (a) (III) (A) as follows: 22-54-124. State aid for charter schools - use of state education fund moneys - definitions. (3) (a) (III) (A) The total amount of state education fund moneys to be appropriated for all eligible districts and for all eligible institute charter schools for the 2003-04 through 2011-12 budget years shall be an amount equal to five million dollars; except that, for the 2006-07 budget year, an additional two million eight hundred thousand dollars shall be appropriated from the state education fund and shall be used for the purposes of this section, and for the 2008-09 budget year, an additional one hundred thirty-five thousand dollars shall be appropriated from the state education fund and shall be distributed pursuant to section 22-54-133, as said section existed prior to its repeal in 2010. The total amount of state education fund moneys to be appropriated for all eligible districts and for all eligible institute charter schools for the 2012-13 budget year is six million dollars. The total amount of state education fund moneys to be appropriated for all eligible districts and for all eligible institute charter schools for the 2013-14 budget year and each budget year thereafter is seven million dollars. The total amount of state education fund moneys appropriated for all eligible districts and all eligible institute charter schools for the 2014-15 budget year and each budget year thereafter is twenty-five million dollars. SECTION 3. Effective date. This act takes effect July 1, 2014. SECTION 4. 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.