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Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0491.01 ABA SENATE BILL 98­105

STATE OF COLORADO

BY SENATOR Pascoe

EDUCATION

APPROPRIATIONS

A BILL FOR AN ACT

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.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.)

For the 1998­99 budget year and budget years thereafter, eliminates separate funding for categorical support programs except for transportation aid. Establishes categorical funding under the school finance act for pupils with disabilities, gifted pupils, English language pupils, and vocational education pupils. Increases categorical funding to reflect inflationary increases. Determines the additional weight to be used for each category. Defines terms. Creates a legislative interim committee to study the categories and weights for categorical funding and the weight for at­risk funding and to make recommendations to the general assembly on changes to the categories or weights. Moves categorical funding in the general appropriation bill into the school finance total program funding. Makes an appropriation to increase the amount of state funding for transportation aid and the amount of state funding for school finance to fund inflationary increases.

Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  22­54­104, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read:

22­54­104.  District total program. (4.5) FOR THE 1998­99 BUDGET YEAR AND BUDGET YEARS THEREAFTER, A DISTRICT'S CATEGORICAL FUNDING SHALL BE THE SUM OF THE FOLLOWING:

(a)   (DISTRICT PER PUPIL FUNDING X 21.6%) X DISTRICT PUPILS WITH DISABILITIES;

(b)   (DISTRICT PER PUPIL FUNDING X 0.9%) X DISTRICT GIFTED PUPILS;

(c)   (DISTRICT PER PUPIL FUNDING X 2.9%) X DISTRICT ENGLISH LANGUAGE PUPILS; AND

(d)  (DISTRICT PER PUPIL FUNDING X 5.2%) X DISTRICT VOCATIONAL EDUCATION PUPILS.

SECTION 2.  22­54­103, Colorado Revised Statutes, is amended BY THE ADDITION OF THE FOLLOWING NEW SUBSECTIONS to read:

22­54­103.  Definitions.  As used in this article, unless the context otherwise requires:

(6.5)  "ENGLISH LANGUAGE PUPILS" MEANS PUPILS IDENTIFIED AS STUDENTS WHOSE DOMINANT LANGUAGE IS NOT ENGLISH WHO ARE RECEIVING SERVICES PURSUANT TO ARTICLE 24 OF THIS TITLE.

(7.5)  "GIFTED PUPILS" MEANS PUPILS IDENTIFIED AS GIFTED CHILDREN WHO ARE RECEIVING SERVICES PURSUANT TO ARTICLE 20 OF THIS TITLE.

(10.5)  "PUPILS WITH DISABILITIES" MEANS PUPILS IDENTIFIED AS CHILDREN WITH DISABILITIES WHO ARE RECEIVING SERVICES PURSUANT TO ARTICLE 20 OF THIS TITLE.

(15)  "VOCATIONAL EDUCATION PUPILS" MEANS STUDENTS WHO ARE RECEIVING SERVICES PURSUANT TO ARTICLE 8 OF TITLE 23, C.R.S.

SECTION 3.  22­54­104 (2) (a) (III), Colorado Revised Statutes, is amended to read:

22­54­104.  District total program. (2) (a) (III)  Except as otherwise provided in this subsection (2), subsection (6) of this section, or section 22­54­104.3, a district's total program for the 1996­97 budget year and budget years thereafter shall be the greater of the following:

(A)  (District per pupil funding x District funded pupil count) + District at­risk funding + DISTRICT CATEGORICAL FUNDING; or

(B)  $4,305 x District funded pupil count.

SECTION 4.  22­54­107, Colorado Revised Statutes, is amended to read:

22­54­107.  Buy­out of transportation aid. (1)  If a district levies the number of mills calculated pursuant to section 22­54­106 (2) (a) (II), the district shall make an additional levy to generate property tax revenue in an amount equal to the amount of categorical support funds TRANSPORTATION AID THAT SUCH DISTRICT WOULD OTHERWISE BE ELIGIBLE TO RECEIVE FROM THE STATE PURSUANT TO ARTICLE 51 OF THIS TITLE; except that the total of the two levies cannot exceed the district's levy for the immediately preceding year or the district's allowable levy under the property tax revenue limitation imposed on the district by section 20 of article X of the state constitution.

(2)  When a district receives property tax revenue from the additional levy made pursuant to subsection (1) of this section or when a district has elected to keep excess property tax revenue collected during the 1992 calendar year pursuant to the provisions of section 22­44­103.5 (2) (b) (III) (C) or (2) (c) (III), such property tax revenue shall be used to replace on a pro rata basis, any categorical program support funds which TRANSPORTATION AID THAT such district would otherwise be eligible to receive from the state PURSUANT TO ARTICLE 51 OF THIS TITLE. The amount of categorical program support funds replaced by property tax revenue pursuant to the provisions of this subsection (2) shall be used to make payments of categorical program support funds to eligible districts, and, in the event that the appropriations for categorical programs are less than the total categorical program support funds to which districts are entitled under applicable provisions of law, such funds shall be applied to categorical programs in the following order:

(a)  First, transportation aid pursuant to article 51 of this title;

(b)  Second, funds pursuant to the "English Language Proficiency Act", article 24 of this title; and

(c)  Third, funds pursuant to the "Exceptional Children's Educational Act", article 20 of this title.

(3)  For purposes of this section, "categorical program support funds which the district would otherwise be eligible to receive from the state" means amounts which the district would have received from the state but which will be received instead from property tax revenues by reason of this section and includes funds pursuant to the "Exceptional Children's Educational Act", article 20 of this title, funds pursuant to the "English Language Proficiency Act", article 24 of this title, transportation aid pursuant to article 51 of this title, and vocational education aid pursuant to article 8 of title 23, C.R.S. Funds received by an administrative unit under the "Exceptional Children's Educational Act", article 20 of this title, as reimbursement for services provided to children counted in the pupil enrollment of a district shall be considered as funds which a district would otherwise be eligible to receive for purposes of this subsection (3).

SECTION 5.  Article 54 of title 22, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:

22­54­122.  Interim committee study of categorical funding. (1)  FOR THE PURPOSE OF MAKING RECOMMENDATIONS TO THE GENERAL ASSEMBLY ON THE CATEGORIES AND WEIGHTS OF ADDITIONAL FUNDING TO BE USED IN DISTRIBUTING CATEGORICAL SUPPORT PROGRAM FUNDING UNDER THE PROVISIONS OF SECTION 22­54­104 (4.5) AND ON THE WEIGHT TO BE USED IN DISTRIBUTING AT­RISK FUNDING UNDER THE PROVISIONS OF SECTION 22­54­104 (4), THERE IS HEREBY CREATED AN INTERIM COMMITTEE TO WORK THROUGH THE 1998 INTERIM. THE INTERIM COMMITTEE SHALL CONSIST OF THE MEMBERS OF THE SENATE AND HOUSE COMMITTEES ON EDUCATION. THE CHAIR OF THE SENATE COMMITTEE ON EDUCATION SHALL SERVE AS THE CHAIR OF THE INTERIM COMMITTEE WITH THE CHAIR OF THE HOUSE COMMITTEE ON EDUCATION SERVING AS VICE­CHAIR.

(2)  THE INTERIM COMMITTEE SHALL LOOK AT THE ACTUAL COSTS OF EDUCATING AT­RISK PUPILS, ENGLISH LANGUAGE PUPILS, GIFTED PUPILS, PUPILS WITH DISABILITIES, AND VOCATIONAL EDUCATION PUPILS AND DETERMINE APPROPRIATE WEIGHTS BASED UPON SUCH COSTS. THE COMMITTEE SHALL SUBMIT A WRITTEN REPORT ON THE COMMITTEE'S FINDINGS AND RECOMMENDATIONS TO THE LEGISLATIVE COUNCIL NO LATER THAN OCTOBER 15, 1998. LEGISLATION RECOMMENDED BY THE COMMITTEE SHALL BE TREATED AS LEGISLATION RECOMMENDED BY ANY OTHER INTERIM COMMITTEE FOR PURPOSES OF ANY INTRODUCTION DEADLINES OR BILL LIMITATIONS IMPOSED BY THE JOINT RULES OF THE SENATE AND THE HOUSE OF REPRESENTATIVES.

(3)  THE MEMBERS OF THE INTERIM COMMITTEE SHALL BE PAID PER DIEM AND SHALL BE REIMBURSED FOR THEIR NECESSARY EXPENSES FOR ATTENDANCE AT MEETINGS OF THE COMMITTEE. ALL EXPENDITURES INCURRED WHILE CONDUCTING THIS STUDY SHALL BE APPROVED BY THE CHAIR OF THE LEGISLATIVE COUNCIL AND PAID BY VOUCHERS AND WARRANTS DRAWN AS PROVIDED BY LAW FROM MONEYS ALLOCATED TO THE LEGISLATIVE COUNCIL FOR LEGISLATIVE STUDIES FROM APPROPRIATIONS MADE BY THE GENERAL ASSEMBLY.

(4)  THE LEGISLATIVE COUNCIL STAFF, THE OFFICE OF LEGISLATIVE LEGAL SERVICES STAFF, AND THE STAFF OF THE DEPARTMENT OF EDUCATION SHALL BE MADE AVAILABLE TO ASSIST THE INTERIM COMMITTEE IN CARRYING OUT ITS DUTIES.

SECTION 6.  Repeal. 22­24­106 (1) (e), Colorado Revised Statutes, is repealed as follows:

22­24­106.  Department ­ powers and duties. (1)  It is the duty of the department to:

(e)  Allocate such moneys, out of annual appropriations to the department, on a per­student basis.

SECTION 7.  The introductory portion to 23­8­102 (1) and 23­8­102 (6) and (7), Colorado Revised Statutes, are amended to read:

23­8­102.  School districts conducting vocational education courses ­ eligibility for state funds. (1)  Any school district of the state conducting any course of vocational education, approved pursuant to section 23­8­103 by the state board for community colleges and occupational education, referred to in this article as the "board", is entitled to vocational education program support from funds appropriated for the purpose by the general assembly PURSUANT TO THE "PUBLIC SCHOOL FINANCE ACT OF 1994", ARTICLE 54 OF TITLE 22, C.R.S. The amount of vocational education program support which a district is entitled to receive pursuant to provisions of this article shall be computed as follows:

(6)  The provisions of this section shall not apply to the Colorado customized training program created in section 23­60­306. For the purposes of this section, the costs of such program shall not be included in computing approved vocational education program costs, and trainees in such program shall not be counted in computing the number of full­time equivalent students to be served by approved vocational education programs. Nothing in this section shall preclude the use of school district vocational program sites as delivery sites for specific training programs funded by the Colorado customized training program.

(7)  The provisions of this section shall not apply to the Colorado existing industry training program created pursuant to section 23­60­307. For the purposes of this section, the costs of such program shall not be included in computing approved vocational education program costs, and trainees in such program shall not be counted in computing the number of full­time equivalent students to be served by approved vocational education programs. Nothing in this section shall preclude the use of school district vocational program sites as delivery sites for specific training programs funded by the Colorado existing industry training program.

SECTION 8.  23­8­103 (1), Colorado Revised Statutes, is amended to read:

23­8­103.  Standards for eligibility for grants. (1)  The board shall not approve A vocational education program support to be provided under section 23­8­102 unless the courses of vocational education conducted by a school district meet the standards prescribed in subsection (2) of this section.

SECTION 9.  Repeal. 23­8­104 (2) (c), Colorado Revised Statutes, is repealed as follows:

23­8­104.  Effective period of article. (2)  On or before November 1 of each year during the effective period of this article, the board shall submit to the joint budget committee and to the house and senate committees on education a report on the implementation and results of programs funded pursuant to this article, including:

(c)  The total cost and the full­time equivalent student cost of each type of approved program;

SECTION 10.  Repeal. 22­20­114, 22­24­104 (4), and 23­8­102 (1) (a), (1) (b), (1) (c), (2), (3), (4), and (5), Colorado Revised Statutes, are repealed.

SECTION 11.  Appropriation ­ adjustments in long bill. (1)  In addition to any other appropriation, there is hereby appropriated, out of any moneys in the general fund not otherwise appropriated, to the department of education, for the fiscal year beginning July 1, 1998, the sum of four million seven hundred thirty­six thousand eight hundred ninety­two dollars ($4,736,892), or so much thereof as may be necessary, to be allocated as follows:

(a)  One million seven hundred thirty­six thousand forty­six dollars ($1,736,046) for public school finance, total program; and

(b)  Three million eight hundred forty­six dollars ($3,000,846) for public school finance, public school transportation.

(2)  For the implementation of this act, appropriations made in the annual general appropriation act for the fiscal year beginning July 1, 1998, shall be adjusted as follows:

(a)  The three separate appropriations to the department of education for public school finance, English language proficiency, special education ­ children with disabilities, and special education ­ gifted and talented children are decreased to zero, and the appropriation to the department of education for public school finance, total program, shall be increased by the sum of the three separate appropriations decreased pursuant to this paragraph (a).

(b)  The appropriation to the department of higher education, division of occupational education, for Colorado vocational act distributions pursuant to section 23­8­102, Colorado Revised Statutes, is decreased to zero, and the appropriation to the department of education, public school finance, total program is increased by the amount of the appropriation decreased pursuant to this paragraph (b).

SECTION 12.  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.