First Regular Session Seventieth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 15-0500.01 Julie Pelegrin x2700 SENATE BILL 15-033 SENATE SPONSORSHIP Kerr, HOUSE SPONSORSHIP (None), Senate Committees House Committees State, Veterans, & Military Affairs A BILL FOR AN ACT Concerning increasing the funding for preschool through twelfth grade public education, and, in connection therewith, increasing the funding for full-day kindergarten and requiring the secretary of state to submit a ballot question to authorize the state to retain and spend for preschool through twelfth grade public education any state revenues above the excess state revenues cap approved by the voters in 2005. 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.) Under existing law, the "Public School Finance Act of 1994" funds kindergarten students as half-day pupils plus the supplemental kindergarten enrollment. Under existing law, the supplemental kindergarten enrollment is an additional .08 of a full-day pupil. The bill increases the supplemental kindergarten enrollment for the 2015-16 budget year and each budget year thereafter to .15 of a full-day pupil. The bill expresses the general assembly's intent to increase funding annually for full-day kindergarten starting in the 2016-17 budget year and continuing through the 2020-21 budget year so that by 2020-21, the general assembly is funding kindergarten students as full-day pupils. Pursuant to referendum C passed by the voters in 2005, the state is currently authorized to retain and spend up to a capped amount of revenues each year that would otherwise be refunded in accordance with the taxpayer's bill of rights. Subject to a vote of the people, the bill authorizes the state to retain and spend all additional excess revenues beginning in the 2016-17 fiscal year. The general assembly is required to appropriate the additional retained moneys first to fund kindergarten pupils as full-day pupils and then to fund the state's share of total program funding. The state treasurer must transfer any amount of remaining additional excess revenues to the state education fund. The director of research of the legislative council must prepare an annual report concerning how the retained excess revenues are expended. The secretary of state is directed to place the question of whether to allow the state to retain excess revenues on the ballot for the 2015 general election. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 22-54-103, amend (15) as follows: 22-54-103. Definitions. As used in this article, unless the context otherwise requires: (15) "Supplemental kindergarten enrollment" means the number calculated by subtracting five-tenths from the full-day kindergarten factor for the applicable budget year and then multiplying said number by the number of pupils in the district who are enrolled in kindergarten for the applicable budget year. For the purposes of this subsection (15): (a) The full-day kindergarten factor for the 2008-09, 2009-10, and 2010-11 budget years and each budget year thereafter through the 2014-15 budget year is fifty-eight hundredths of a full-day pupil; and (b) The full-day kindergarten factor for the 2015-16 budget year and each budget year thereafter is sixty-five hundredths of a full-day pupil. SECTION 2. In Colorado Revised Statutes, 22-54-131, amend (6) as follows: 22-54-131. Full-day kindergarten funding - guidelines - technical assistance - legislative intent - legislative declaration. (6) Beginning in the 2009-10 2016-17 budget year and continuing through the 2013-14 2020-21 budget year, it is the intent of the general assembly to increase annually the appropriation to be used by districts to provide full-day kindergarten programs. For each budget year, the general assembly intends to appropriate the following amounts: (a) For the 2009-10 2016-17 budget year, sixty at least one hundred thirteen million dollars; (b) For the 2010-11 2017-18 budget year, seventy at least one hundred forty-nine million dollars; (c) For the 2011-12 2018-19 budget year, eighty at least one hundred eighty-five million dollars; (d) For the 2012-13 2019-20 budget year, ninety at least two hundred twenty-one million dollars; and (e) For the 2013-14 2020-21 budget year, one hundred at least two hundred fifty-seven million dollars. SECTION 3. In Colorado Revised Statutes, add 24-77-103.3 as follows: 24-77-103.3. Retention of all remaining excess state revenues - preschool through twelfth grade education general fund exempt account - creation - definitions - repeal. (1) At the election held on November 3, 2015, the secretary of state shall submit to the registered electors of the state for their approval or rejection the following ballot issue: "Without raising taxes and to invest in preschool through twelfth grade education, may the state retain and spend all current and future state revenues that exceed the constitutional limitation on state fiscal year spending?". (2) If a majority of the electors voting on the ballot issue vote "Yes/For", then for all fiscal years beginning on or after July 1, 2015, the state may retain and spend all of the state revenues that the state otherwise would have been required to refund under section 20 (7) (d) of article X of the state constitution, and these state revenues are a voter-approved revenue change to the limitation on state fiscal year spending. (3) (a) The preschool through twelfth grade education general fund exempt account is created in the general fund. The account consists of an amount of moneys equal to the total amount of state revenues that the state retains for a fiscal year under this section that is above the amount of the excess state revenues cap calculated pursuant to section 24-77-103.6 (6) (b). Each fiscal year, the general assembly shall appropriate and the state treasurer shall transfer the moneys in the account as provided in paragraphs (b) to (d) of this subsection (3). (b) The general assembly shall annually first appropriate moneys in the account to fund kindergarten pupils as full-day pupils in the amounts specified in section 22-54-131, C.R.S. (c) Of the moneys remaining in the account after the appropriation described in paragraph (b) of this subsection (3), the general assembly shall appropriate moneys to fully fund the state's share of total program funding calculated pursuant to sections 22-54-104 and 22-54-106, C.R.S. (d) The state treasurer shall transfer the unexpended and unencumbered balance remaining in the account as of June 30 of each year to the state education fund created in section 17 (4) of article IX of the state constitution. (4) For each state fiscal year that the state retains and spends state revenues under this section, the director of research of the legislative council shall include a description of how the moneys in the preschool through twelfth grade education general fund exempt account were expended in the report prepared in accordance with section 24-77-103.6 (5). (5) For purposes of section 1-5-407, C.R.S., the ballot issue is a proposition. Section 1-40-106 (3) (d), C.R.S., does not apply to the ballot issue. (6) As used in this section: (a) "Ballot issue" means the question referred to voters in subsection (1) of this section. (b) "State revenues" means state revenues not excluded from state fiscal year spending, as defined in section 24-77-102 (17). (7) (a) If a majority of the electors voting on the ballot issue vote "No/Against", then this section is repealed, effective July 1, 2016. (b) If a majority of the electors voting on the ballot issue vote "Yes/For", then this subsection (7) is repealed, effective July 1, 2016. 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.