The Student Success Act Reps. Hamner, Murray & Sen.

Johnston Table of Contents Category Negative Factor Implementation Fund Average Daily Membership Timeline Mechanics True-Ups New or Growing Charters Financial Transparency Website Special Education Report Mill Levy Override Report Capital Construction Prop AA Allocation Technology Funding Charter Facilities

Statutory Citation 22-54-104 22-59-104 22-54-112.5(2) 22-54-112.5(1) 22-54-112.5(4) 22-54-112.5(5) 22-44-105 22-30.5-112 22-2-113.8

Page Number(s) 8-9 13-19 26-28 19-27 30-32 30-33 68-72 72-73 73-74 74-79 83-85 85-88 89-90 88-89 79-83 95-101 101-103 103-106 111-113

22-43.7-104 22-43.7-110.3(1)-(2) 22-43.7-110.3(3) 22-54-124 Full-Day K Facilities 22-43.7-201 BEST Board Governance 22-43.7-106 and 109 English Language Learners Proficiency Program 22-24-104 to -106 Excellence Award Program 22-24-107 Support Program 22-24-108 Appropriations Funding Summary Item Recurring Funding Negative Factor READ Act Funding

Amount $100 million $20 million

Purpose Restore a substantial portion of the recession-era budget cuts. Provide additional funding to support the higherthan-expected numbers of struggling readers. Provide additional funding for ELL students while updating the English Language Proficiency Act. Support successful implementation of existing policies (assessments, evaluations, technology, and school safety) with additional funding distributed on a per-pupil basis. Allow for better transparency and reward schools and districts that enroll students after the count

ELL Funding One-Time Funding Implementation Fund

$35 million

$40 million

Financial Transparency and ADM Funding

$15 million

date. Capital Construction Infrastructure $40 million Use Prop. AA revenues to provide kindergarten facility funding (up to $30 million), technology funding (up to $5 million), and supplement charter facilities funding (up to $5 million). Ensure safe facilities for charter school students by providing charter facility funding.

Charter Facilities Funding

$13 million

The Student Success Act: Bill Provisions Negative Factor Negative Factor Buy-Down (C.R.S. 22-54-104) (pp. 8-9) 1. Negative factor is reduced by $100 million Implementation Fund Fund Mechanics (C.R.S. 22-59-104) (pp. 13-19) 1. $40 million in funds are transferred from the State Education Fund to CDE for distribution in FY 2014-2015 on a per-pupil basis 2. Districts and CSI are required to forward the full amount to charters and institute charters 3. Funds can be used for the following permitted uses: a. Implementing instructional supports to assist students in meeting academic expectations; b. Implementing statewide assessments and local assessments aligned to academic expectations for students; c. Implementing district accountability measures; d. Implementing educator evaluation systems; e. Implementing research-based and transformative educational practices; and f. Implementing school safety requirements 4. CDE is permitted to use up to 2% for administrative costs Average Daily Membership Timeline (C.R.S. 22-54-112.5(2)) (pp. 26-28) 1. FY 14-15: CDE creates a membership data collection system 2. FY 15-16: CDE consults with districts on a volunteer basis to test the data collection system 3. FY 16-17: Districts begin to calculate ADM but continue to be funded on single count date 4. FY 17-18: Pilot year during which CDE calculates both ADM and single count date1 5. FY 18-19: First year of funding based on ADM ADM Mechanics (C.R.S. 22-54-112.5(1)) (pp. 19-27) 1. Membership is defined as the pupils who are enrolled in a district or institute charter school 2. Funding Averaging Period is defined as the first day of the first quarter of the preceding budget year and ends on the last day of the first quarter of the current budget year

This pilot year is necessary to calculate the savings from ADM that will be captured and directed back into K-12 funding in FY 18-19.

3. CDE is required to promulgate rules to specify the point at which a student is enrolled and must ensure accountability for actual student participation 4. Retains the current system of allowing a four-year averaging for declining enrollment districts 5. Specifies that, in FY 18-19, any savings produced as a result of transitioning to ADM are sent back to districts and institute charter schools on a per-pupil basis Recalculation for Districts and Institute Charter Schools (C.R.S. 22-54-112.5(4)) (p. 30-32), (C.R.S. 2254-114 to 115) (pp. 35-40)2 1. Creates a $20 million Actual Membership Reserve Account in the state public school fund 2. CDE bases budgeting for a district or institute charter school on a projected membership 3. In January, districts and institute charters will submit their second quarter of membership data, after which CDE will submit supplemental requests and recalculate district and institute charter schools total program 4. If the actual membership in January exceeds the projected membership, CDE will true up districts and institute charter schools using funds from the Actual Membership Reserve Account 5. If/when the General Assembly provides a supplemental appropriation, CDE uses the supplemental appropriation to first replenish the Actual Membership Reserve Account and then forwards the remainder to districts and institute charter schools New or Growing Institute Charter Schools (C.R.S. 22-54-112.5(5)) (pp. 30-33) and District Charter Schools (C.R.S. 22-30.5-122 & 112.1) (pp. 40-59) 1. For new institute charter schools, school funding will be based on the projected membership for the first school day. If the new schools membership for the first half of the year is different from the projections, CDE will adjust the funding up or down. 2. For institute charter schools in their second year of operation or opening a new grade level, if the new schools membership for the first quarter is different from the funding averaging period, CDE will adjust the funding up or down 3. Districts that authorize charter schools must calculate their charter schools funding in the same manner as CDE calculates institute charter schools funding above Financial Transparency How It Works (C.R.S. 22-44-105) (pp. 68-72) 1. Requires all school districts to report school-level expenditures 2. The reporting must include the following: a. Actual salary amounts by job classification and benefit expenditures by type of benefit b. The amount of mill levy override revenues and the dollar amount distributed to schools 3. The state board and the Financial Policies and Procedures Committee must develop and adopt accounting guidelines to allocate centralized administrative costs among school sites 4. CDE is required to create or contract for a website that a. Displays the data in a format readable by a layperson b. Compares expenditures and academic performance for each public school, including the schools median growth percentile, ACT scores, college remediation rates, student suspension rates, and attendance rates Special Education Report (C.R.S. 22-30.5-112) (pp. 72-73)
2

NOTE: There is still a significant amount of work to be done on this section of the bill. CDE is helping to design a payment and true-up system that is efficient and fair, and we welcome input about how to accomplish those aims.

1. Requires that districts provide charter schools an itemized accounting of special education costs and the basis of special education charges assessed to the charter schools Mill Levy Override Report (C.R.S. 22-2-113.8) (pp. 73-74) 1. Requires CDE to compile an annual report of mill levy override revenues and the extent to which districts distribute mill levy overrides to schools in the districts 2. Districts are permitted to review the report before publication and request an addendum that outlines total funding shared with charter schools in the district 3. Requires the department to public the report and any addenda on the department website Capital Construction Allocation of Proposition AA Revenues (C.R.S. 22-43.7-104) (pp. 74-79) 1. Specifies that the first $40 million of Prop. AA excise revenues are credited to the Public School Capital Construction Assistance Fund 2. Allocates 75% of Prop. AA revenues to kindergarten facilities, 12.5% to technology funding, and 12.5% to charter facilities Technology Assistance Account (C.R.S. 22-43.7-110.3(1)-(2)) (pp. 83-85) 1. Creates a Technology Assistance Account 2. Establishes an application process by which districts may apply for technology grant funding 3. Prioritizes grant applications based on the following criteria: a. Projects that improve the applicants technology infrastructure and ability to support technological applications; b. Projects that improve the applicants ability to administer statewide assessments; c. Projects that increase the extent to which the applicant is able to increase the use of technology into classroom instruction and delivery of the curricula Charter Facilities Assistance Account (C.R.S. 22-43.7-110.3(3)) (pp. 85-88) 1. Creates the Charter Facilities Assistance Account 2. Directs the department to distribute funds to qualified charter schools in the same manner as qualified charter schools receive facilities funding under C.R.S. 22-54-124 Full-Day Kindergarten Facility Capital Construction Account (C.R.S. 22-43.7-201) (pp. 88-89) 1. Moves the Full-Day Kindergarten Facility into the Public School Capital Construction Assistance Fund and permits the BEST board to review applications and grant funding for full-day kindergarten facilities BEST Board Governance (C.R.S. 22-43.7-106 and 109) (pp. 79-83) 1. Requires the board to create a conflict of interest policy 2. Requires the board to adopt a standard evaluation rubric that the board must use in reviewing applications for financial assistance 3. Requires the board to consider school districts remaining bond capacity and bonded indebtedness limit as part of an application for financial assistance Charter Facility Funding (C.R.S. 22-54-124) (pp. 89-90) 1. Increases charter facility funding from $7 million to $20 million English Language Learners

English Language Proficiency Program (C.R.S. 22-24-104 to -106) (pp. 95-101) 1. Establishes the program to assist districts in administering and implementing English language proficiency programs for ELLs in grades K-12 2. Specifies that a student in the program may receive funding for up to five years 3. CDE allocates the money for the program on a per-pupil basis using the number of ELL students identified and certified by districts 4. Outlines district requirements for English language proficiency programs 5. Requires CDE to identify assessments districts must use to identify students eligible for English language proficiency programs Excellence Award Program (C.R.S. 22-24-107) (pp. 101-103) 1. Creates grant awards for districts that achieve the highest academic growth among ELL students 2. Requires grant winners to summarize their programs, and requires CDE to publicly disseminate Professional Development & Student Support Program (C.R.S. 22-24-108) (pp. 103-106) 1. Creates a fund to assist with compliance, professional development, and program expansion for ELL students 2. Distributes the fund based on districts ELL percentages 3. Requires districts to distribute the ELL funding to charter schools on a per-pupil basis Literacy Funding READ Act Implementation (C.R.S. 22-7-1210(1)(d.5)) (p. 111) 1. Appropriates $20 million in recurring funding to the early literacy fund for additional READ Act implementation