TITLE: CONCERNING THE COLORADO PRESCHOOL PROGRAM, AND, IN CONNECTION THEREWITH, INCREASING THE NUMBER OF CHILDREN WHO MAY BE SERVED THROUGH FULL-DAY KINDERGARTEN PROGRAMS, AND MAKING AN APPROPRIATION THEREFOR.

Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues General Fund
State Expenditures General Fund	$1,998,000	$3,246,750
FTE Position Change	0.0 FTE	0.0 FTE
Other State Impact: None
Effective Date: Upon signature of the Governor
Appropriation Summary for FY 1999-2000: General Fund increase of $1,998,000 for Public School Finance, Total Program.
Local Government Impact: School district revenues and expenditures would increase.

As amended by the House Education Committee, House Bill 99-1170 increases the number of students that can be funded under the Colorado Preschool Program by 1,500 over a two-year period. The cap on the number of students is increased by 1,000 in FY 1999-00, from 8,850 in the current budget year to 9,850 in FY 1999-00. The cap would increase by an additional 500 preschoolers in FY 2000-01, to 10,350.

The bill also increases the number of full-day kindergarten slots that can be substituted for preschool slots and extends the time frame of the full-day kindergarten component of the Colorado Preschool Program. In the current budget year, 500 of the preschool slots are required to be used for full-day kindergarten, unless there are fewer applicants for the slots. This bill increases the number of slots that must be used for full-day kindergarten (if there are sufficient applicants) to 1,500, an increase of 1,000 slots. Effectively, the total increase in preschool slots could be used for full-day kindergarten in FY 1999-00 if there are enough applicants. School districts apply to the Department of Education for authorization to use these full-day kindergarten slots. The ability to substitute full-day kindergarten students for preschoolers is currently scheduled to terminate in FY 2000-01. The bill extends the termination date by two years, to FY 2002-03.

The school finance act is the mechanism by which preschool students are funded. Therefore, the increase in the number of students funded under the Colorado Preschool Program increases General Fund expenditures for school finance. Preschool students are funded as one-half full-time equivalent (FTE). The increase of 1,000 preschoolers (500 FTE) in FY 1999-00 would normally increase state General Fund expenditures by $2,497,500. However, the Long Bill as introduced includes $499,500 for an increase of 200 preschool slots required by House Bill 99-1209, which has passed both houses of the General Assembly. Therefore, the net increase in General Fund expenditures required to increase preschool slots by 1,000 in FY1999-00 is $1,998,000. The increase of 500 preschoolers (250 FTE) in FY 2000-01 would increase General Fund expenditures in that year by an additional $1,248,750, for a total increase in FY 2000-01 of $3,246,750.

The provisions of the bill that increase the number of full-day kindergarten slots do not affect state expenditures because full-day kindergarten students are substituted for preschoolers, rather than counted as additional students. The bill allows the total increase in state expenditures for the preschool program in FY 1999-00 to be used for full-day kindergarten.

State revenues to school districts would increase by $2,497,500 in FY 1999-00 and $3,746,250 in FY 2000-01 as a result of the increase in the number of students funded under the Colorado Preschool Program.

The bill implies that the General Fund appropriation for Public School Finance, Total Program, would increase by $1,998,000 in FY 1999-00.