Amendments to Colorado school finance formula could move opponents closer to support

With more than a dozen amendments being added to the new school finance formula, outspoken opponents that have come out against the measure may move closer to a position of support.

As reported by Colorado Politics Thursday, the bill that would revamp the state's school finance formula was amended in the House Appropriations Committee Friday morning.

HB 1448 starts with the base per-pupil funding, excluding high school students and online enrollment. Then, it adds in at-risk funding, money for English language learners, and special education. The cost-of-living factor would be applied after that, along with a locale factor, a district size factor, and then "extended" high school and online funding. The cost is estimated at around $500 million more, spread out over six years.

The committee added a dozen amendments to the 105-page measure, as suggested by the bill's sponsors, House Speaker Julie McCluskie and Assistant Majority Leader Rep. Jennifer Bacon, D-Denver.

The bill has drawn opposition from a hodge-podge of groups, such as the state's two largest teachers’ unions and some of the state's largest school districts. Those objections included two studies intended to address accountability to ensure the money gets to each school's at-risk, special education, and English Language Learner students. That language was based on model legislation from the American Legislative Exchange Council (ALEC), a free market think tank. Another objection from some of the largest school districts is the funding; rural districts would receive increases of around 3% to 5%, but the increase to some larger districts was well below 1%.

The appropriations committee approved the following:

• Two amendments removed the two studies and replaced them with reports from the Colorado Department of Education with the accountability data to be presented to the joint education committees during their annual SMART Act hearings. Appropriations Chair Rep. Shannon Bird, D-Westminster, said she's still hearing concerns about the SMART Act hearings. However, McCluskie pointed out the amendment, adding that the hearings had the Colorado Education Association's blessing.

Another amendment would have proposed continuing the public school task force, which could still be added, according to McCluskie. She had hoped to charge the task force with a review of how the state is doing student headcount and whether basing the entire formula on per-pupil funding is the best approach when enrollment is in such decline, noting, for example, that Jefferson County is closing dozens of schools due to low enrollment. Then there's the issue of additional enrollment from new undocumented students who have migrated to the state in the past year, which has created school challenges, she said.

• The bill also proposed an amendment setting up an "override mill levy match working group" that will make recommendations on modifying override matches. The recommendations should ensure more equitable funding distributions and identify inequities between neighboring districts with different overrides.

"We want to ensure this shift to a new formula is sustainable," McCluskie told the committee. School districts are facing declining enrollments, which will result in local property taxes picking up a larger share of their local school district's funding. That will take some pressure off the state, which is required to cover gaps in local funding. That could lead to the availability of general fund revenue in future years, McCluskie said, or general fund and state education fund availability.

• The bill also picked up an amendment providing a premium for small districts (less than 7,000 students and primarily rural) which also have a higher percentage of at-risk students. 

The amendment that sets the funding floor increase at 0.5% also was adopted by the committee. 

More amendments are anticipated. 

HB 1448 now heads to the full House, with 12 days to go in the 2024 session.