TITLE: CONCERNING CREATION OF THE COLORADO EARLY CHILDHOOD EDUCATION TUITION REIMBURSEMENT PILOT PROGRAM.

Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues General Fund
State Expenditures General Fund
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: None Required
Local Government Impact: The bill will result in a shift of $1,579,017 away from Denver Public Schools designated preschool slots to the Early Childhood Education Tuition Reimbursement Pilot Program.

The bill creates the Early Childhood Education Tuition Reimbursement Pilot Program, beginning in the fall semester 2000, to provide reimbursement of nonpublic preschool tuition paid by parents of eligible children. Requirements of the pilot program include:

• limits the program to school districts whose boundaries are coterminous with a city and county;

• limits the program to children who are eligible for both the Colorado Preschool Program and the free or reduced-cost School Lunch Program;

• limits the program to no more than 50 percent of the maximum number of children that may participate in the district's preschool program in any year;

• allows parents of participating children to receive reimbursement of the amount of preschool tuition paid or 40 percent of the state average per pupil operating revenues (PPOR), which ever is less, and specifies procedures for parents to receive reimbursement;

• includes participating children in the pupil enrollment count for the district;

• specifies that parochial preschools are not included in the definition if such inclusion is determined to be unconstitutional;

• authorizes a participating school district to seek public or private moneys to pay for publicizing and evaluating the program; and

The bill defines "district" to mean any school district organized under the laws of Colorado whose boundaries are coterminous with a city and county. As written, the bill only impacts the Denver Public Schools because only this school system falls under the definition of district.

The fiscal note assumes that the bill will neither increase nor decrease state funding for PPOR. Denver Public Schools has approximately 1,622 preschool slots in the Colorado Preschool Program which are currently funded at 50 percent of the average PPOR of $4,867. Under SB 99-162, up to 50 percent of these slots (811) could move out of the district to nonpublic schools. The 1,622 slots are currently counted for PPOR and under the bill they will continue to be counted although 811 will be attending nonpublic schools.

Under SB 99-162, up to 50 percent of Denver Public School 1,622 preschool slot could move out of the district — 811 slots. The bill allows parents of participating children to receive reimbursement of the amount of preschool tuition paid or 40 percent of the state average PPOR. The fiscal note assumes 40 percent of PPOR or $1,947. Thus, the total amount "shifted" from the Denver school district to nonpublic schools is estimated at $1,579,017 (811 slots x $1,947 = $1,579,017). Because Denver is funded at 50 percent of PPOR for its preschool slots, under SB 99-162, $394,713 will remain with the district.

Denver Public Schools will also incur costs to publicize the availability of the program beginning with the fall semester 2000, and prepare a report to the General Assembly, due no later than January 1, 2004. These costs are not quantified in this fiscal note.