TITLE: CONCERNING STATE FUNDING FOR CATEGORICAL SUPPORT PROGRAMS, AND, IN CONNECTION THEREWITH, DISTRIBUTING STATE FUNDING FOR CERTAIN PROGRAMS THROUGH THE “PUBLIC SCHOOL FINANCE ACT OF 1994” BY ESTABLISHING FUNDING CATEGORIES AND WEIGHTS, CREATING AN INTERIM COMMITTEE TO STUDY THE FUNDING CATEGORIES AND WEIGHTS, AND MAKING AN APPROPRIATION.

STATE FISCAL IMPACT SUMMARY	FY 1998/99	FY 1999/2000
State Revenues General Fund Other Fund
State Expenditures General Fund - Public School Finance, Total Program General Fund - Public School Finance, Transportation General Fund - Interim Committee Expenses	$4,052,382 $3,000,846 $29,445	$5,835,918 $3,000,846 ---
FTE Position Change	0.35 FTE	None
Local Government Impact — Additional funding will be made available through the School Finance Act to school districts in the amount of $7,053,228 in FY 1998-99, and by $8,836,764 in FY 1999-00.

The bill would eliminate separate funding for categorical support programs, except for transportation aid, beginning with the 1998-99 budget year. The new categorical funding under the School Finance Act would be established as the sum of:

• (district per pupil funding x 21.6%) x district pupils with disabilities; plus

• (district per pupil funding x 2.9%) x district English language pupils; plus

The bill would also create a legislative interim committee to study categorical funding. The committee would be comprised of the members of the Senate and House Committees on Education. The Chair of the Senate Committee on Education would be the chair of the interim committee, and the chair of the House Committee on Education would serve as vice-chair. The 18-member interim committee would look at the actual costs of educating at-risk pupils, English language pupils, gifted pupils, pupils with disabilities, and vocational education pupils in order to determine appropriate weights. A written report would be submitted to the Legislative Council no later than October 15, 1998. Members of the interim committee would receive per diem and be reimbursed for necessary expenses. The Legislative Council staff, the Office of Legislative Legal Services staff, and staff of the Department of Education would be made available to assist the interim committee in carrying out its duties.

The bill would affect state expenditures and school district revenues. Therefore, the bill is assessed as having state and local fiscal impact. The bill would become effective upon signature of the Governor.

Categorical Support Program Impact. The bill would create new categorical funding under the School Finance Act. The estimated funding increase to the School Finance Act is identified in Table 1. below.

Category Weight

FY 1998-99

FY 1999-00

Estimated Funding

Pupils Increase

Estimated Funding

Pupils Increase

Special Education

Gifted & Talented

ELPA

Vocational Training

Transportation

Total

21.6%

0.9%

2.9%

5.2%

n/a

72,349

128,777

23,500

77,099

n/a

301,725

$1,468,972

256,742

489,421

1,837,246

3,000,846

$7,053,228

73,651

131,095

23,923

78,487

n/a

307,156

$2,766,618

353,002

546,023

2,170,275

3,000,846

$8,836,764

Interim Committee Expenses. The bill specifies that the Legislative Council staff, the Office of Legislative Legal Services staff, and staff of the Department of Education would be made available to assist the interim committee in carrying out its duties. Assuming the interim committee will meet six times during the interim, meeting costs and staff resource requirements are identified in Table 2. Legislator members would be compensated as set forth in Section 2-2-307, C.R.S. (during the interim -- actual and necessary expenses and $99 per diem per meeting). The average expense reimbursement for members is estimated to be $50 per meeting.

Table 2. Estimated Fiscal Impact Interim Committee Study of Categorical Funding
Legislator Per Diem - interim (18 legislative members)	$ 99/Day x 18 x 6 Meetings	$ 10,692
Expense Reimbursement	$ 50/Meeting x 18 x 6 Meetings	$ 5,400
Legislative Council Staff (includes PERA and Medicare)	0.25 FTE Research Staff	$ 8,756
Legal Services Staff (includes PERA and Medicare)	0.10 FTE Staff Attorney	$ 4,597
Total Net Costs		$ 29,445 0.35 FTE

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

Additional funding will be made available through the School Finance Act to school districts in the amount of $4,052,382 for public school finance total program, and $3,000,846 for transportation in FY 1998-99. The increase for FY 1999-00 will be $5,835,918 for public school finance total program, and $3,000,846 for transportation.

The provisions of the bill suggest an increase in the FY 1998-99 appropriation for the Department of Education, Public School Finance, Total Program of $4,052,382, and an increase in the appropriation for the Public School Finance, Public School Transportation of $3,000,846.

If this bill is not approved by the Legislative Council as part of the regular interim studies currently budgeted, the Legislative Department would require a General Fund appropriation of $29,445 and 0.35 FTE to implement the provisions of the bill for FY 1998-99. Of this amount, the General Assembly would require an appropriation of $10,692, the Legislative Council would require an appropriation of $14,156 and 0.25 FTE, and the Office of Legislative Legal Services would require an appropriation of $4,597 and 0.1 FTE.