student success act: bill summary

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The Student Success Act Reps. Hamner, Murray & Sen. Johnston Table of Contents Category Statutory Citation Page Number(s) Negative Factor 22-54-104 8-9 Implementation Fund 22-59-104 13-19 Average Daily Membership Timeline 22-54-112.5(2) 26-28 Mechanics 22-54-112.5(1) 19-27 True-Ups 22-54-112.5(4) 30-32 New or Growing Charters 22-54-112.5(5) 30-33 Financial Transparency Website 22-44-105 68-72 Special Education Report 22-30.5-112 72-73 Mill Levy Override Report 22-2-113.8 73-74 Capital Construction Prop AA Allocation 22-43.7-104 74-79 Technology Funding 22-43.7-110.3(1)-(2) 83-85 Charter Facilities 22-43.7-110.3(3) 22-54-124 85-88 89-90 Full-Day K Facilities 22-43.7-201 88-89 BEST Board Governance 22-43.7-106 and 109 79-83 English Language Learners Proficiency Program 22-24-104 to -106 95-101 Excellence Award Program 22-24-107 101-103 Support Program 22-24-108 103-106 Appropriations 111-113 Funding Summary Item Amount Purpose Recurring Funding Negative Factor $100 million Restore a substantial portion of the recession-era budget cuts. READ Act Funding $20 million Provide additional funding to support the higher-than-expected numbers of struggling readers.

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A line-by-line breakdown of the Student Success Act (HB 14-1292).

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Page 1: Student Success Act: Bill Summary

The Student Success ActReps. Hamner, Murray & Sen. Johnston

Table of ContentsCategory Statutory Citation Page Number(s)Negative Factor 22-54-104 8-9Implementation Fund 22-59-104 13-19Average Daily Membership

Timeline 22-54-112.5(2) 26-28Mechanics 22-54-112.5(1) 19-27

True-Ups 22-54-112.5(4) 30-32New or Growing Charters 22-54-112.5(5) 30-33

Financial TransparencyWebsite 22-44-105 68-72

Special Education Report 22-30.5-112 72-73Mill Levy Override Report 22-2-113.8 73-74

Capital ConstructionProp AA Allocation 22-43.7-104 74-79

Technology Funding 22-43.7-110.3(1)-(2) 83-85Charter Facilities 22-43.7-110.3(3)

22-54-12485-8889-90

Full-Day K Facilities 22-43.7-201 88-89BEST Board Governance 22-43.7-106 and 109 79-83

English Language LearnersProficiency Program 22-24-104 to -106 95-101

Excellence Award Program 22-24-107 101-103Support Program 22-24-108 103-106

Appropriations 111-113

Funding SummaryItem Amount PurposeRecurring FundingNegative Factor $100 million Restore a substantial portion of the recession-era

budget cuts.READ Act Funding $20 million Provide additional funding to support the higher-

than-expected numbers of struggling readers.

ELL Funding $35 million Provide additional funding for ELL students while updating the English Language Proficiency Act.

One-Time FundingImplementation Fund $40 million Support successful implementation of existing

policies (assessments, evaluations, technology, and school safety) with additional funding distributed on a per-pupil basis.

Financial Transparency and ADM Funding

$15 million Allow for better transparency and reward schools and districts that enroll students after the count

Page 2: Student Success Act: Bill Summary

date.Capital ConstructionInfrastructure $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).

Charter Facilities Funding

$13 million Ensure safe facilities for charter school students by providing charter facility funding.

The Student Success Act: Bill Provisions

Negative FactorNegative Factor Buy-Down (C.R.S. § 22-54-104) (pp. 8-9)

1. Negative factor is reduced by $100 million

Implementation FundFund 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 charters3. 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; andf. Implementing school safety requirements

4. CDE is permitted to use up to 2% for administrative costs

Average Daily MembershipTimeline (C.R.S. § 22-54-112.5(2)) (pp. 26-28)

1. FY 14-15: CDE creates a membership data collection system2. FY 15-16: CDE consults with districts on a volunteer basis to test the data collection system3. FY 16-17: Districts begin to calculate ADM but continue to be funded on single count date4. 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 school2. “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

1 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.

Page 3: Student Success Act: Bill Summary

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 districts5. 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. § 22-54-114 to 115) (pp. 35-40)2

1. Creates a $20 million “Actual Membership Reserve Account” in the state public school fund2. CDE bases budgeting for a district or institute charter school on a projected membership3. 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 school’s 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 school’s 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 TransparencyHow It Works (C.R.S. § 22-44-105) (pp. 68-72)

1. Requires all school districts to report school-level expenditures2. The reporting must include the following:

a. Actual salary amounts by job classification and benefit expenditures by type of benefitb. 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 laypersonb. Compares expenditures and academic performance for each public school, including the

school’s 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.

Page 4: Student Success Act: Bill Summary

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 districts2. Districts are permitted to review the report before publication and request an addendum that

outlines total funding shared with charter schools in the district3. Requires the department to public the report and any addenda on the department website

Capital ConstructionAllocation 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 Account2. Establishes an application process by which districts may apply for technology grant funding3. Prioritizes grant applications based on the following criteria:

a. Projects that improve the applicant’s technology infrastructure and ability to support technological applications;

b. Projects that improve the applicant’s 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 Account2. 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 policy2. Requires the board to adopt a standard evaluation rubric that the board must use in reviewing

applications for financial assistance3. 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

Page 5: Student Success Act: Bill Summary

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-122. Specifies that a student in the program may receive funding for up to five years3. CDE allocates the money for the program on a per-pupil basis using the number of ELL students

identified and certified by districts4. Outlines district requirements for English language proficiency programs5. 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 students2. 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 students2. Distributes the fund based on districts’ ELL percentages3. Requires districts to distribute the ELL funding to charter schools on a per-pupil basis

Literacy FundingREAD 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