I_SFinance_2019A 10/21/2019 09:06:59 AM Committee Summary

Representative McCluskie called the meeting to order and made opening remarks. Committee members also made opening comments.

Rebecca Sibillia and Matt Richmond, EdBuild, discussed the EdBuild simulation tool and how it may help the committee make decisions regarding the school finance formula. Committee discussion ensued.

Ms. Sibillia and Mr. Richmond provided an overview of the simulation tool, and the committee discussed each factor that is included in the tool.

Committee discussion continued.

Mr. Richmond and Ms. Sibillia responded to questions about the negative factor and the budget stabilization factor in the simulation.

The committee recessed.

The committee came back to order, and the committee continued the discussion with the panel from EdBuild. Ms. Sibillia discussed the budget stabilization factor and how the simulation tool operates with the assumption that there is no budget stabilization factor in the current finance formula.  Mr. Richmond walked the committee through the simulation tool.

The committee continued the discussion of the simulation tool and each of the factors included in the funding formula.

Mr. Richmond gave an example of an option for a formula model that the committee can move forward with. Mr. Richmond and Ms. Sibillia discussed the variables in this particular model. The panel answered questions from the committee.

The committee recessed.

The committee came back to order.

Ms. Sibillia and Mr. Richmond returned to the table to provide a wrap up of the services EdBuild offered and the options that the committee has moving forward. Committee discussion ensued.

Representative Esgar and Senator Rankin, Joint Budget Committee (JBC) members, came to the table to provide an update on school finance issues. The JBC presentation can be found here: http://leg.colorado.gov/sites/default/files/images/committees/2017/tpml.jbcatsfincmte.10212019_1.pdf. Representative Esgar discussed mill levies assessed in school districts. Each district has its mill levy set each year in statute. She provided an overview of FY 2019-20 total program mill levies across the state and reviewed how the state has come to have so many local mill levy overrides.

Representative Esgar stated that the goal of the JBC is to improve equity between taxpayers and equity between school districts, through a uniform total program mill levy proposal. She discussed the decline in the local share of K-12 education costs versus the increase in the state share. Senator Rankin discussed the possibility of creating a uniform mill levy statewide and the constitutional provisions, such as the Taxpayer's Bill of Rights (TABOR) and the Gallagher Amendment, that constrain education funding. Senator Rankin and Representative Esgar responded to questions from the committee.

Craig Harper, JBC staff, came to the table to respond to committee questions regarding the proposal of creating a statewide uniform mill levy. The committee asked questions of Mr. Harper, Rep. Esgar, and Senator Rankin regarding how the mill levy equity proposal would impact certain types of districts.

Committee discussion continued.