PUBLIC SCHOOL FINANCE UPDATE July, 2011 Leanne Emm Assistant Commissioner 303-866-6202 [email protected] Agenda • Where we have been • Where we are • Where we are going • Other items.
Download ReportTranscript PUBLIC SCHOOL FINANCE UPDATE July, 2011 Leanne Emm Assistant Commissioner 303-866-6202 [email protected] Agenda • Where we have been • Where we are • Where we are going • Other items.
PUBLIC SCHOOL FINANCE UPDATE July, 2011 Leanne Emm Assistant Commissioner 303-866-6202 [email protected] Agenda • Where we have been • Where we are • Where we are going • Other items of interest Where We Have Been FY2009-10 & FY2010-11 FY2009-10 Fiscal Health Analysis • Produced by the Office of the State Auditor • One district – three warning indicators • Five districts – two warning indicators • Two or more indicators – districts provide information incorporated into report • Present to Legislative Audit Committee – August 22nd FY2010-11 Year-End Final Per Pupil Funding • “Rescissions with Per Pupil Funding” spreadsheet posted on the CDE website • ADE financial data & allocations to Charters and CPP FY2010-11 Accreditation Report Two new questions - Financial Transparency C.R.S. 22-44-301 through 304 • Has the school district complied with all of the reporting requirements of the Public School Financial Transparency Act? • Has the school district’s charter school(s) complied with all the reporting requirements of the Public School Financial Transparency Act? Financial Transparency HB 10-1036 requires each “Local Education Provider” (LEP) to post financial information online, in a downloadable format, for free public access. • LEP is defined as: • A School District: • A Board of Cooperative Services (BOCES); • A Charter School Institute; • A District Charter School; and • An Institute Charter School. Financial Transparency Commencing July 1, 2010: • • • • District Adopted Budget for FY09-10 and FY10-11 District Financial Audit Quarterly Financial Statements Salary Schedules or Policies Additionally Commencing July 1, 2011: • Accounts Payable Check Registers • Credit, Debit and Purchase Card Statements Financial Transparency Additionally Commencing July 1, 2012: • Investment Performance Reports Personal information relating to payroll, including but not limited to payroll deductions or contributions, or any other information that is confidential or otherwise protected from public disclosure is not required to be posted. Financial Transparency – Available online and updated within sixty days after the completion or receipt of the applicable report, statement, or document – Maintain the prior two budget years’ financial information on-line until the end of the current budget year – CDE Website – template as prescribed by HB 10-1036 http://www.cde.state.co.us/cdefinance/sfFinancialTransparency.htm Where We Are FY2011-12 State of Colorado General Fund Revenue - $7.12 Billion 2011-2012 Other 3.4% Excise Taxes 30.7% Income Taxes 65.9% Source: 2011/2012 Budget in Brief; Joint Budget Committee State of Colorado General Fund - $7.01 Billion 2011-2012 General Government 0.7% Other 3.5% Human Services/Health Care 32.6% Education (K-12) 40.4% $2.83B Higher Education 8.9% Source: 2011/2012 Budget in Brief; Joint Budget Committee Corrections/ Judicial 13.9% Federal, State and Local Funding for Public Schools 2011-2012 $6.1 Billion Categorical Programs $406.1M, 7% Other Federal Funds $434.5M, 7% School Finance Act $5,212.7B, 85% Other State Funds $84.1M, 1% 2011-12 Total Program Funding - School Finance Act $5,212.7 Billion Other State Funds, $664.50M, 13% Property Tax, $1,738.52M, 33% State General Fund, $2,671.85M, 51% Specific Ownership, $137.83M, 3% Per Pupil Funding - Base • 2011-2012 – Base Funding - $5,634.77 • Increase of $105.06 from prior year • Inflation of 1.9% • Amendment 23 1% is no longer in effect in 2011/2012 Per Pupil Funding - Factors • Base funding is adjusted by factors – – – – – Cost of Living Personnel costs Size of district At-risk funding On-Line funding Creates Total Program • 2011-2012 – SB230 - Negative Factor of 12.97% applied to Total Program School Districts by Pupil Count Per Pupil Funding Calculation Two Examples $9,000 $8,000 $7,000 $6,000 $5,000 Size $4,000 Cost of Living $3,000 Base Funding $2,000 $1,000 $0 District A District B Appropriated Total Program Funding by Component, With and Without Negative Factor At-Risk, Size, $284 $261 Other, $120 All Other Factors, $759 COL, $868 Negative Factor ($774) Base, $4,454 Base, $4,454 Total Program Funding: $5,987.1 million Total Program Funding: $5,212.7 million Federal, State and Local Funding for Public Schools 2011-2012 $6.1 Billion Categorical Programs $406.1M, 7% Other Federal Funds $434.5M, 7% School Finance Act $5,212.7B, 85% Other State Funds $84.1M, 1% Categorical Programs 2011-2012 = $406.1 Million GT, $9.20 CTE, $23.58 Expelled, $7.49 Comprehensive Health, $1.01 Small Attendance, $0.96 ELPA, $24.38 Transportation, $50.83 ECEA, $288.63 Federal Funds 2011-2012 = $434.55 Million Other, $41.0 Dropout, $3.0 Title I, $197.2 Nutrition, $156.5 Title II, $36.8 Other State Funds 2011-2012 = $84.1 Million Nutrition, $4.2 Read-toAchieve, $4.4 School Counselor Corps, $5.0 Other State, $1.4 Capital Construction/ Facilities, $35.04 Hold-harmless Full-day K, $7.2 School For Deaf and Blind, $11.8 Facililty Schools, $15.1 June 2011 Revenue Forecasts • Legislative Council and OSPB – Both better than the March 2011 forecast. • $67.5 million from SB11-230 potentially available • Solid evidence of recovery – still evidence of struggles – slow recovery $67.5 Million • Supplemental appropriation process – next legislative session • Changes in enrollment, at-risk, assessed values and specific ownership tax • Not available until appropriated! Risks to Economic Recovery • Nationally, 8.8 million jobs lost between January 2008 and February 2010 • Jobs added: 1.8 million • Debt, housing, European economy, Japan, monetary policy and the Middle East will impact the recovery. Colorado Risks • Tight credit for businesses and consumers. • High debt and unemployment • Uncertainty in financial and housing markets. Where We Are Going FY2012-13 FY2012-13 – June Forecast OSPB Legislative Council Inflation Estimate 3.5% 2.6% Potential Growth in Total Program $261 million $207 million Late February 2012 – actual inflation State of Colorado Total Program Funding Gaps represent rescissions in millions $6,000.0 $5,000.0 $4,000.0 $3,000.0 $2,000.0 $1,000.0 $000.0 Fully Funded Total Program Total Program Less Rescissions /Legislative Actions 2008-09 Actual 2009-10 Actual 2010-11 Actual 2011-12 ESTIMATE $5,354.8 $5,717.3 $5,822.3 $5,999.9 $5,347.3 $5,586.1 $5,439.9 $5,223.8 2012-13 PROJECTION OSPB - 3.5% Inflation $6,248.5 FY2012-13 • Potential is high for further reductions • Growth in students and caseloads continue to pressure the General Fund • State Education Fund balance diminishing State Education Fund in millions $600.0 $500.0 Amount $400.0 $300.0 $200.0 $100.0 $0.0 Revenues Expenditures Fund Balance FY2007-08 $424.9 $301.5 $349.3 FY2008-09 $475.7 $494.0 $331.0 FY2009-10 $339.5 $482.3 $188.2 FY2010-11 Estimate $376.9 $423.4 $141.7 Other Topics of Interest SB11-230 Bonded Indebtedness •Changes the date in which the limit to bonded indebtness is determined •Mainly benefits those districts that are hitting their limit and is declining in assessed value •Changes the date to measure the limit to previous December valuation Alternative School Finance Models • Pilot program authorized by HB10-1183 to encourage school districts and charter schools to collect data that will be used to compare the effects of alternative school finance funding models with those of the current funding method. • Districts/charter schools apply to participate – applications available in August • Additional information and the application may be accessed on the CDE website: http://www.cde.state.co.us/index_finance.htm Upcoming Training Sessions • Student October Webinar Trainings from 9:30 – 11:30 on the following dates. – – – – – Tuesday, August 9th Wednesday, August 17th Monday, August 22nd Friday, September 2nd Wednesday, September 7th • The PSFU Audit Office will be providing resources and answering questions about pupil count audits. • You may register for one of the trainings at: – http://www.cde.state.co.us/scripts/StuOctWorkshop11/start.asp Upcoming Training Sessions • On-line Pupil Count Webinar – Wednesday, August 24th at 10:00 am • Chart of Account Changes for FY2011-12 and FPP Handbook Update Webinar – October timeframe – Assuming the FPP Handbook changes have been approved by the FPP committee by this time Other Topics • Possible Federal requirement for individual charter schools to have a separate independent annual financial audit performed and issued to its authorizer and the Department. • The Governmental Accounting Standards Board (GASB) has recently issued exposure drafts related to “Pension Accounting and Financial Reporting”. These exposure drafts may impact the financial reporting and disclosures for school districts. If you have concerns, the GASB requests comments by September 30, 2011. Questions?