Colorado Legislative Council Staff

STATE

FISCAL NOTE

General Fund and Cash Fund Expenditure Impact


Drafting Number:

Prime Sponsor(s):

LLS 98-654

Rep. G. Berry

Date:

Bill Status:

Fiscal Analyst:

February 8, 1998

House Education

Lon Engelking (866-4751)

 

TITLE:            CONCERNING HIGHER EDUCATION.



Summary of Legislation


STATE FISCAL IMPACT SUMMARY

FY 1998/99

FY 1999/2000

State Revenues

General Fund

Other Fund



 



 

State Expenditures

General Fund and Cash Funds*

    Trustees of the State Colleges in Colorado

    Colorado Commission on Higher Education (CCHE)



($121,120,895)

121,120,895


 

FTE Position Change

(2.0 FTE)

 

Local Government Impact — None


    * For purposes of this fiscal note, no increase of appropriation is assumed over current level.


            Effective June 30, 1998, this bill would abolish the Board of Trustees of the State Colleges in Colorado. It would designate the Colorado Commission on Higher Education (CCHE) as the governing board for the state colleges from July 1, 1998, to June 30, 1999. The Board of Trustees of the State Colleges currently governs: Metropolitan State College of Denver; Mesa State College of Colorado; Western State College of Colorado; and Adams State College of Colorado.


            The bill requires each of the state colleges to present a governance plan to a joint meeting of the Education Committees of the Senate and House of Representatives, and the Joint Budget Committee on or before September 1, 1998. Each plan would include the college’s preference as to future governance. Acting together, the Joint Education Committee and the Joint Budget Committee would submit legislation to the General Assembly establishing the governance of the colleges.


            For FY 1998-99, the General Assembly would appropriate funds to CCHE that would otherwise be appropriated to the Board of Trustees of the State Colleges. CCHE would allocate funds to the colleges based on their proportion of funds received in FY 1997-98. CCHE would be allowed a portion of the funds for administration costs. The bill would take effect upon signature of the Governor.

State Expenditures


            Since the bill abolishes the Board of Trustees of the State Colleges in Colorado, moneys otherwise appropriated to the Board of Trustees would be appropriated to CCHE. For FY 1997-98, the Office of the State College was appropriated $1,504,084 and 7.3 FTE. Of that amount, approximately $781,508 will be spent for institutional support of the four state colleges. It is assumed that CCHE would be required to provide the same level of support to the colleges for FY 1998-99, with the exception of expenses related to the President and Assistant to the President. The amount of these expenses (salaries, benefits, housing, and operating) total $266,955 for FY 1997-98. Therefore, an additional $266,955 would be allocated to the state colleges based on their proration of funds as appropriated in FY 1997-98. It should be noted that the bill would result in a 2.0 FTE decrease to the state. CCHE would require 5.3 FTE for FY 1998-99, which is the difference in current funding of 7.3 FTE and the decrease of 2.0 FTE. The following table shows the increased amount that would be allocated to the state colleges.



STATE COLLEGES IN COLORADO

ALLOCATION OF FUNDS

 

FY 1997-98

Appropriation

Percentage

Distribution

FY 1998-99

Additional Allocation

Adams State College

$14,357,922

12.5%

$33,369

Mesa State College

 

$21,734,528

18.9%

50,454

Metropolitan State College

$66,103,766

57.5%

153,500

Western State College

$12,720,226

11.1%

29,632

Total State Colleges

$114,916,442

100%

$266,955



            For purposes of this fiscal note, no increase in General Fund or Cash Funds are assumed for FY 1998-99. Therefore, the total amount that was appropriated in FY 1997-98 ($121,120,895) would be appropriated to CCHE in FY 1998-99, and allocated to the state colleges based on their proportionate share after administrative expenses.


            Not included in this fiscal note are certain liabilities of the Board of Trustees such as pending lawsuits against the Board, bonds issued and outstanding, and the current Defined Pension Contribution Plan. The bill is unclear as to whether CCHE would assume these responsibilities. Therefore, no estimate is made at this time.

 


Expenditures Not Included


            Pursuant to the Joint Budget Committee’s budget policies, the following expenditures have not been included in this fiscal note:

 

               health and life insurance costs;

               short-term disability costs;

               inflationary cost factors;

               leased space; and

               indirect costs.



Spending Authority


            The fiscal note would imply that for FY 1998-99, the moneys that would otherwise be appropriated to the State Board of Trustees of the State Colleges of Colorado should be appropriated to the Colorado Commission on Higher Education. The total appropriation of General Fund and Cash Fund for FY 1997-98 is $121,120,895.



Departments Contacted


Higher Education       Office of State Colleges