safe bet

Disputed money in Colorado education budget will go to school safety measures

More money is forecast to appear below the gold dome (Denver Post photo).

Colorado lawmakers will take $7 million in “extra” education money they’ve been wrangling over and put it toward bills that improve school safety.

The money isn’t officially designated for a specific bill, but $7 million happens to be the amount of money that state Sen. Don Coram, a Montrose Republican, has requested in a bill that would provide grants to schools that want to buy radio technology that allows them to communicate more directly with emergency responders. Speaker of the House Crisanta Duran, a Denver Democrat, is a co-sponsor of the bill.

At a Senate Education Committee hearing last month, administrators from rural school districts that already use the hand-held radios said they would be an immense help in a school shooting, but they also get daily use for more mundane problems, like dealing with broken-down buses and irate parents.

The bill calls for the Department of Public Safety to make $7 million in annual grants available to schools for five years. Grant recipients would be able to use the money to provide training in how to communicate effectively with first responders in an emergency, to update school crisis management plans, and to make improvements in their communications systems.

The bill doesn’t identify a specific funding source. The compromise reached late last week allows the money to go toward a range of school safety needs, not just the radio technology bill.

Republicans in the Senate and Democrats in the House had been fighting over how to adjust the 2017-18 appropriation for K-12 education after roughly 900 fewer students enrolled in Colorado schools than had been forecast.

Democrats had wanted to keep total spending the same and give schools a little bit extra per student. Republicans wanted to keep per-pupil spending the same and put the extra money into the general fund.

The debate over an amount that represents less than one-tenth of 1 percent of the state’s $6.6 billion education budget was symbolic of the larger budget debate hanging over this legislative session.

State Rep. Brittany Pettersen, the Lakewood Democrat who chairs the House Education Committee, had pushed for more money to go to schools, but she said this week that the deal is a reasonable compromise.

“It keeps the money in schools and supports schools in ways that they’re really struggling,” she said.

The state Senate and House have both signed off on the compromise proposal, which comes as the Joint Budget Committee prepares to discuss the 2018-19 education budget.


Colorado schools are getting a major bump in the state’s 2018-19 budget

Students waiting to enter their sixth-grade classroom at Kearney Middle School in Commerce City. (Photo by Craig Walker, The Denver Post)

Colorado’s strong economy has opened the door for state lawmakers to send a major cash infusion to the state’s public schools.

As they finalized the recommended budget for 2018-19, the Joint Budget Committee set aside $150 million, an additional $50 million beyond what Democratic Gov. John Hickenlooper had asked for, to increase funding to schools.

“We believe this is the most significant reduction in what used to be called the negative factor since it was born,” said state Rep. Millie Hamner, the Dillon Democrat who chairs the Joint Budget Committee.

Colorado’s constitution calls for per pupil spending to increase at least by inflation every year, but the state hasn’t been able to meet that obligation since the Great Recession. The amount by which schools get shorted, officially called the budget stabilization factor, is $822 million in 2017-18. Under state law, this number isn’t supposed to get bigger from one year to the next, but in recent years, it hasn’t gotten much smaller either. 

But a booming economy coupled with more capacity in the state budget created by a historic compromise on hospital funding last year means Colorado has a lot more money to spend this year. In their March forecast, legislative economists told lawmakers they have an extra $1.3 billion to spend or save in 2018-19.

The recommended shortfall for next year is now just $672.4 million. That would bring average per-pupil spending above $8,100, compared to $7,662 this year.

Total program spending on K-12 education, after the budget stabilization factor is deducted, should be a little more than $7 billion, with the state picking up about $4.5 billion and the rest coming from local property taxes.

The budget debate this year has featured Republicans pressing for more ongoing money for transportation and Democrats resisting in the interest of spreading more money around to other needs. The positive March forecast reduced much of that tension, as a $500 million allocation for transportation allowed a compromise on roads funding in the Republican-controlled Senate. That compromise still needs the approval of the Democratic-controlled House, but suddenly a lot of things are seeming possible.

“We knew we were going to have more revenue than we’ve ever had to work with,” Hamner said of the status at the beginning of the session. But that presented its own challenges, as so many interest groups and constituencies sought to address long-standing needs.

“The fact that we’ve been able to reach such incredible compromises on transportation and K-12 funding, I think most members will be very pleased with this outcome,” Hamner said. “Where we ended up is a pretty good place.”

The big outstanding issue is proposed reforms to the Public Employees Retirement Association or PERA fund to address unfunded liabilities. A bill that is likely to see significant changes in the House is wending its way through the process. The Joint Budget Committee has set aside $225 million to deal with costs associated with that fix, which has major implications for teachers and school districts budgets.

The Joint Budget Committee has also set aside $30 million for rural schools, $10 million for programs to address teacher shortages, and $7 million for school safety grants.

The budget will be introduced in the House on Monday. Many of the school funding elements will appear in a separate school finance bill.

Going forward, there is a question about how sustainable these higher funding levels will be.

“It does put more pressure on the general fund,” Hamner said. “If we see a downturn in the economy, it’s going to be a challenge.”

In the money

Here’s how Colorado schools would spend an extra $100 million (or more) from the state

PHOTO: Helen H. Richardson/The Denver Post
Hannah Moore, 8, shows off her moves during practice for an after school talent show that is part of the Scholars Unlimited After School program at Ashley Elementary school on March 10, 2017 in Denver, Colorado. Scholars Unlimited is an after school and summer program funded by the 21st Century Community Learning Center Grant, which is threatened to be cut entirely under the White House's budget cuts. The 21st Century Community Learning Center Grant served almost 20,000 students in Colorado between 2015 and 2016 and 76 percent of students showed academic improvement. (Photo by Helen H. Richardson/The Denver Post)

Update: By Friday, the JBC had set aside $150 million to increase funding to schools.

Legislators on the Joint Budget Committee unanimously decided this week to set aside $100 million to “buy down” the budget stabilization factor. 

This number – $822 million in 2017-18 – is the amount by which Colorado underfunds its schools when compared to the constitutional requirement that spending on education increase every year based on student count and inflation. It’s more commonly known as the negative factor, though lawmakers are trying to get away from that term.

For several years now, lawmakers have held the negative factor steady, but this year, as Colorado has more money to spend than it has had in a long time, Gov. John Hickenlooper wanted to make a dent in it and requested the $100 million reduction. To be clear, a $100 million reduction in the negative factor is $100 million more that the state would send to districts. Technically, this number will be finalized in a separate piece of legislation, the School Finance Bill, which is coming any day now.

But state Rep. Millie Hamner, the Dillon Democrat who chairs the Joint Budget Committee, wanted to give some reassurance to educators that the money will be there in the budget. 

“It would send a message to our K-12 community that we are not spending that money and have set it aside,” she said.

And educators have been clamoring to hear that message. The Colorado School Finance Project has been running a social media campaign for the $100 million buydown using the hashtags #k12needsco and #kidsmattertoo.

The non-profit asked school superintendents around the state to say what they would do with the extra money, which translates to an additional $114 on average for each enrolled student, compared to holding the budget stabilization factor steady. The answers are identified by region, but not by district.

Here’s a small sample of the responses:

You can read all of them here.

The Joint Budget Committee has set total program spending on education at $7.75 billion before the negative factor is applied, up from $7.45 billion this year, a 4 percent increase. Of total program spending, the state will pay $4.4 billion, with the rest coming from local property taxes. This doesn’t include voter-approved tax increases known as mill levy overrides.

That translates to average per-pupil spending of $7,959, compared to $7,662 this year. A budget stabilization factor of $722 million would yield an average per-pupil amount closer to $8,074. 

The smaller budget stabilization factor is significant beyond just one budget year because state law says that this number shouldn’t get larger from one year to the next. However, Colorado superintendents are also pushing for a tax increase and change to the distribution of school money. It will take more than an additional $100 million spread among 870,000 students to address all the needs they identify in their responses to the Colorado School Finance Project.

Hickenlooper had also requested an additional $200 million for the state education fund, with the intention that that money be used to offset costs to districts from proposed changes to the public pension system and expected reductions in property tax revenue in rural communities.

The Joint Budget Committee instead voted to set aside $225 million to deal with costs associated with fixing the Public Employees Retirement Association’s unfunded liability – but in the general fund rather than the state education fund and not specifically to help schools, where retirement costs account for a big chunk of the personnel budget.

The committee also agreed to set aside $30 million to help small rural districts with low tax bases and was supportive of setting aside $10 million to address rural teacher shortages, though some of the details are still being worked out.