House Bill 25-1320 Introduced

A Bill for an Act

• Page 1, Line 101Concerning the financing of public schools.

Bill Summary

(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)

Under current law, there are 2 total program formulas to finance public schools. Absent the satisfaction of a statutorily specified condition, the first formula is scheduled to stop determining total program after the 2024-25 budget year (expiring formula), and the second formula is scheduled to determine total program beginning in the 2030-31 budget year (new formula). For the 2025-26 budget year through the 2029-30 budget year (transition period), total program is scheduled to be determined by using figures that were calculated under both the expiring formula and the new formula.

The bill:

• Extends the transition period by one year, so that it is from the 2025-26 budget year through the 2030-31 budget year; and
• Postpones the exclusive use of the new formula to determine total program until the 2031-32 budget year.
• For the 2027-28 budget year, the amount calculated under the expiring formula plus an amount equal to 45% of the difference between the amounts calculated under the new formula and the expiring formula;
• For the 2028-29 budget year, the amount calculated under the expiring formula plus an amount equal to 60% of the difference between the amounts calculated under the new formula and the expiring formula;
• For the 2029-30 budget year, the amount calculated under the expiring formula plus an amount equal to 75% of the difference between the amounts calculated under the new formula and the expiring formula; and
• For the 2030-31 budget year, the amount calculated under the expiring formula plus an amount equal to 90% of the difference between the amounts calculated under the new formula and the expiring formula.
• For the 2025-26 budget year, a school district's funded pupil count is calculated by determining the greater of the school district's pupil enrollment for the applicable budget year or the average of the school district's pupil enrollment for the applicable budget year and the immediately preceding 3 budget years; and
• For the 2026-27 budget year and each budget year thereafter, a school district's funded pupil count is calculated by determining the greater of the school district's pupil enrollment for the applicable budget year or the average of the district's pupil enrollment for the applicable budget year and the immediately preceding 2 budget years.
• If a statutorily specified condition is satisfied, and consequently for the 2026-27 budget year, a district's total program is not determined as scheduled under the transition period, then for the 2026-27 budget year, and each budget year thereafter, funded pupil count will continue to be determined by the greater of the school district's pupil enrollment for the applicable budget year or the average of the school district's pupil enrollment for the applicable budget year and the immediately preceding 3 budget years; and
• If, for the 2027-28 budget year, the state education fund balance is projected to be less than $200 million, then the general assembly is required to implement a smoothing factor or the funded pupil count will be determined by the greater of the school district's pupil enrollment for the applicable budget year or the average of the school district's pupil enrollment for the applicable budget year and the immediately preceding budget year for the 2027-28 budget year and each budget year thereafter.
• Increases the statewide base per pupil funding for the 2025-26 budget year by $195.42 to account for inflation;
• Sets a new statewide base per pupil funding amount for the 2025-26 budget year at $8,691.80; and
• Sets the total program funding for the 2025-26 budget year for all school districts and institute charter schools to at least $10,035,615,917.80.

The bill changes how each school district's and institute charter school's annual total program is determined during the transition period. For the 2025-26 and 2026-27 budget years, each school district's and institute charter school's annual total program is the greater of the school district's or institute charter school's total program for the 2024-25 budget year or the amount calculated under the expiring formula plus an amount equal to 15% in 2025-26 and 30% in 2026-27 of the difference between the amounts calculated under the new formula and the expiring formula. For the 2027-28 budget year through the 2030-31 budget year, each school district's and institute charter school's annual total program is the greater of the district's or institute charter school's calculation under the expiring formula plus 1% of that calculation, or:

Under current law, there are specified conditions that apply to the transition period. If the joint budget committee determines that a specified condition occurs in a budget year during the transition period, then for the next budget year and each budget year thereafter, the transition is suspended, and each school district's total program is determined pursuant to the calculation and determination required for the budget year when the condition occurred. For one of the existing conditions, the bill specifies that an income tax deposit to the state education fund that was made to correct an error does not count toward determining whether the condition has been satisfied.

A school district's funded pupil count is a figure that is used as a part of determining a school district's total program. Under the expiring formula, a school district's funded pupil count is calculated by determining the greater of the school district's pupil enrollment for the applicable budget year or the average of the school district's pupil enrollment for the applicable budget year and the immediately preceding 4 budget years. Under current law, the new formula calculates a school district's funded pupil count by determining the greater of the school district's pupil enrollment for the applicable budget year or the average of the school district's pupil enrollment for the applicable budget year and the immediately preceding 3 budget years.

The bill changes the new formula so that:

However:

The bill changes the expiring formula so that starting in the 2027-28 budget year, the funded pupil count used in the expiring formula is the same funded pupil count that is used in the new formula to determine a district's total program during the transition period.

The bill determines total program for the 2025-26 budget year using the formula changes in the bill. The bill:

Under current law, a new at-risk measure is required to be implemented in the 2025-26 budget year. The bill postpones the implementation of this requirement to the 2026-27 budget year.

• Page 4, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 4, Line 2SECTION 1.  Legislative declaration. (1)  The general assembly finds and declares that:

• Page 4, Line 3(a)  The state of Colorado is committed to ensuring that every

• Page 4, Line 4child, regardless of their socioeconomic background, geographic location,

• Page 4, Line 5or individual needs has access to a high-quality public education. In order

• Page 4, Line 6to achieve this, the state must distribute state and local funding through

• Page 4, Line 7a school finance system that is student-centered, equitable, and sustainable.

• Page 4, Line 8(b)  The general assembly reaffirms its commitment to upholding

• Page 4, Line 9the Colorado Constitution's mandate for a thorough and uniform system

• Page 4, Line 10of public education and to providing every child with the opportunity to

• Page 4, Line 11receive an adequate education. Furthermore, the general assembly

• Page 4, Line 12acknowledges the importance of continuing the increases in funding for

• Page 4, Line 13public education mandated by section 17 of article IX of the Colorado

• Page 4, Line 14Constitution, which ensures year-over-year adjustments to account for

• Page 4, Line 15inflationary pressures. This commitment is fundamental to the long-term prosperity and well-being of Colorado's future workforce and economy.

• Page 5, Line 1(c)  The new school finance formula, established by the general

• Page 5, Line 2assembly to begin in the 2025-26 school year, is designed to prioritize

• Page 5, Line 3students and equity by directing resources where they are most needed,

• Page 5, Line 4particularly toward students who face greater challenges in their academic

• Page 5, Line 5success, including those living in poverty, learning English, and who have

• Page 5, Line 6special needs. The formula recognizes the diverse needs of Colorado

• Page 5, Line 7students, including those who live in small, rural, and remote school

• Page 5, Line 8districts, who may require additional resources to overcome geographic,

• Page 5, Line 9economic, and logistical barriers to providing a world-class public education.

• Page 5, Line 10(2)  Therefore, it is the intent of the general assembly that this new

• Page 5, Line 11school finance formula is implemented in a manner that is responsive to

• Page 5, Line 12the needs of all students and school districts in Colorado while

• Page 5, Line 13maintaining the long-term financial health of the state education fund and ensuring continued funding stability for future generations of students.

• Page 5, Line 14SECTION 2.  In Colorado Revised Statutes, 22-54-103.2, amend (2)(a) and (2)(b) as follows:

• Page 5, Line 1522-54-103.2.  District total program formula report. (2)  In its

• Page 5, Line 16report described pursuant to subsection (1) of this section, the department of education shall report, at a minimum, data demonstrating:

• Page 5, Line 17(a)  The successes and challenges of determining a district's total

• Page 5, Line 18program pursuant to section 22-54-103.3 for reports concerning the

• Page 5, Line 192025-26 budget year through the 2029-30 2030-31 budget year, and the

• Page 5, Line 20successes and challenges of determining a district's total program

• Page 5, Line 21pursuant to section 22-54-103.5 for reports concerning the 2030-31

• Page 5, Line 222031-32 budget year and each budget year thereafter;

• Page 6, Line 1(b)  How district total program, determined pursuant to section

• Page 6, Line 222-54-103.3 for reports concerning the 2025-26 budget year through the

• Page 6, Line 32029-30 2030-31 budget year and determined pursuant to section

• Page 6, Line 422-54-103.5 for reports concerning the 2030-31 2031-32 budget year and

• Page 6, Line 5each budget year thereafter, is being used at the school level, including

• Page 6, Line 6traditional public schools, district charter schools, and institute charter

• Page 6, Line 7schools, and information currently reported by the department of education in district performance snapshots; and

• Page 6, Line 8SECTION 3.  In Colorado Revised Statutes, 22-54-103.3, amend

• Page 6, Line 9(1)(a), (1)(c), (2), (3), (4), (5)(b)(I) introductory portion, (5)(c)(I)(C), and (6) as follows:

• Page 6, Line 1022-54-103.3.  District total program - 2025-26 through 2030-31

• Page 6, Line 11budget years - definitions - repeal. (1) (a)  Notwithstanding any

• Page 6, Line 12provision of law to the contrary, for the 2025-26 budget year through the

• Page 6, Line 132029-30 2030-31 budget year, the department of education shall

• Page 6, Line 14determine each district's total program pursuant to this section. The

• Page 6, Line 15district's total program is available to the district to fund the costs of

• Page 6, Line 16providing public education, and, except as otherwise provided in section

• Page 6, Line 1722-54-105, the district has the discretion to determine the amounts and purposes for budgeting and expending its district total program money.

• Page 6, Line 18(c)  As used in this section, "for the 2025-26 budget year through

• Page 6, Line 19the 2029-30 2030-31 budget year" means the 2025-26 budget year, the

• Page 6, Line 202026-27 budget year, the 2027-28 budget year, the 2028-29 budget year, and the 2029-30 budget year, and the 2030-31 budget year.

• Page 6, Line 21(2)  For the 2025-26 budget year through the 2029-30 2030-31

• Page 6, Line 22budget year, the department of education shall calculate each district's

• Page 6, Line 23total program pursuant to sections 22-54-103.5 and 22-54-104.

• Page 7, Line 1(3) (a)  For the 2025-26 budget year, through the 2029-30 budget

• Page 7, Line 2year a district's total program is the greater of the district's total program

• Page 7, Line 3calculation pursuant to section 22-54-104 plus one-half percent of the

• Page 7, Line 4district's total program calculation pursuant to section 22-54-104; or

• Page 7, Line 5determination for the 2024-25 budget year, or the amount

• Page 7, Line 6calculated pursuant to section 22-54-104 plus an amount equal

• Page 7, Line 7to fifteen percent of the difference between the district's total

• Page 7, Line 8program calculation pursuant to section 22-54-103.5 and the

• Page 7, Line 9district's total program calculation pursuant to section 22-54-104.

• Page 7, Line 10(a)  For the 2025-26 budget year, the amount calculated pursuant

• Page 7, Line 11to section 22-54-104 plus an amount equal to eighteen percent of the

• Page 7, Line 12difference between the district's total program calculation pursuant to

• Page 7, Line 13section 22-54-103.5 and the district's total program calculation pursuant to section 22-54-104;

• Page 7, Line 14(b)  For the 2026-27 budget year, the amount calculated pursuant

• Page 7, Line 15to section 22-54-104 plus an amount equal to thirty-four percent of the

• Page 7, Line 16difference between the district's total program calculation pursuant to

• Page 7, Line 17section 22-54-103.5 and the district's total program calculation pursuant

• Page 7, Line 18to section 22-54-104 For the 2026-27 budget year, a district's total

• Page 7, Line 19program is the greater of the district's total program

• Page 7, Line 20determination for the 2024-25 budget year or the amount

• Page 7, Line 21calculated pursuant to section 22-54-104 plus an amount equal

• Page 7, Line 22to thirty percent of the difference between the district's total

• Page 7, Line 23program calculation pursuant to section 22-54-103.5 and the

• Page 7, Line 24district's total program calculation pursuant to section

• Page 7, Line 2522-54-104.

• Page 8, Line 1(c)  For the 2027-28 budget year through the 2030-31 budget

• Page 8, Line 2year,the amount calculated pursuant to section 22-54-104 plus an

• Page 8, Line 3amount equal to fifty percent of the difference between the district's total

• Page 8, Line 4program calculation pursuant to section 22-54-103.5 and the district's

• Page 8, Line 5total program calculation pursuant to section 22-54-104 a district's

• Page 8, Line 6total program is the greater of the district's total program

• Page 8, Line 7calculation pursuant to section 22-54-104 plus one percent of

• Page 8, Line 8the district's total program calculation pursuant to section 22-54-104, or:

• Page 8, Line 9(c)  (I)  For the 2027-28 budget year, the amount calculated

• Page 8, Line 10pursuant to section 22-54-104 plus an amount equal to fifty forty-five

• Page 8, Line 11percent of the difference between the district's total program calculation

• Page 8, Line 12pursuant to section 22-54-103.5 and the district's total program calculation pursuant to section 22-54-104;

• Page 8, Line 13(d)  (II)  For the 2028-29 budget year, the amount calculated

• Page 8, Line 14pursuant to section 22-54-104 plus an amount equal to sixty-six sixty

• Page 8, Line 15percent of the difference between the district's total program calculation

• Page 8, Line 16pursuant to section 22-54-103.5 and the district's total program calculation pursuant to section 22-54-104; and

• Page 8, Line 17(e)  (III)  For the 2029-30 budget year, the amount calculated

• Page 8, Line 18pursuant to section 22-54-104 plus an amount equal to eighty-two

• Page 8, Line 19seventy-five percent of the difference between the district's total

• Page 8, Line 20program calculation pursuant to section 22-54-103.5 and the district's total program calculation pursuant to section 22-54-104; and

• Page 8, Line 21(IV)  For the 2030-31 budget year, the amount calculated

• Page 8, Line 22pursuant to section 22-54-104 plus an amount equal to ninety

• Page 8, Line 23percent of the difference between the district's total program

• Page 9, Line 1calculation pursuant to section 22-54-103.5 and the district's total program calculation pursuant to section 22-54-104.

• Page 9, Line 2(4)  For the 2024-25 budget year through the 2029-30 2030-31

• Page 9, Line 3budget year, the joint budget committee shall monitor the fiscal impact of

• Page 9, Line 4the district total program determinations pursuant to this section and the

• Page 9, Line 5fiscal impact of the transition to the total program formula pursuant to

• Page 9, Line 6section 22-54-103.5. At a minimum, the joint budget committee shall

• Page 9, Line 7consider immediate and forecasted economic conditions, the impact or

• Page 9, Line 8trend of the statewide total local share of total program funding, the

• Page 9, Line 9impact or trend of the state education fund, and any other data-driven

• Page 9, Line 10considerations necessary to ensure the sustainable transition to and

• Page 9, Line 11implementation of a new total program formula. The joint budget

• Page 9, Line 12committee and the general assembly may take action necessary to ensure

• Page 9, Line 13the sustainable transition to and implementation of a new total program

• Page 9, Line 14formula. On or after January 1, 2025, when the department of education

• Page 9, Line 15makes mid-year adjustments, the joint budget committee shall develop a

• Page 9, Line 16sustainability plan that makes findings and recommendations regarding

• Page 9, Line 17how the general assembly can fully fund total program determinations

• Page 9, Line 18pursuant to sections 22-54-103.3 and 22-54-103.5. On or after January 1,

• Page 9, Line 192026, and on or after January 1 each year thereafter, when the department

• Page 9, Line 20of education makes mid-year adjustments, the joint budget committee shall review the sustainability plan and update it as necessary.

• Page 9, Line 21(5) (b) (I)  Notwithstanding any provision of this article 54, for the

• Page 9, Line 222024-25 budget year through the 2029-30 2030-31 budget year, if the

• Page 9, Line 23joint budget committee determines that any one of the conditions described in subsection (5)(c) of this section occurred:

• Page 9, Line 24(c) (I)  The requirements described in subsection (5)(b) of this section are initiated if:

• Page 10, Line 1(C)  In either an assessment year or a non-assessment year, the

• Page 10, Line 2March revenue forecast relied on by the general assembly in setting the

• Page 10, Line 3budget for the next state fiscal year estimates that the income tax

• Page 10, Line 4diversion deposit to the state education fund, as required pursuant to

• Page 10, Line 5section 17 of article IX of the state constitution, will decrease by five

• Page 10, Line 6percent or more in either the current budget year or the next budget year.

• Page 10, Line 7If the joint budget committee determines based on forecast

• Page 10, Line 8estimates, as described in this subsection (5)(c)(I)(C), that the

• Page 10, Line 9income tax deposit to the state education fund will decrease by

• Page 10, Line 10five percent or more in either the current budget year or the

• Page 10, Line 11next budget year as a result of a correction to an error in the

• Page 10, Line 12total amount of state education fund revenues deposited as set

• Page 10, Line 13forth in section 22-55-103 (2), then this subsection (5)(c)(I)(C)

• Page 10, Line 14does not initiate the requirements of subsection (5)(b) of this section.

• Page 10, Line 15(6)  This section is repealed, effective July 1, 2031 July 1, 2032.

• Page 10, Line 16SECTION 4.  In Colorado Revised Statutes, 22-54-103.5, amend (1)(a), (1)(c)(I), (1)(c)(III), and (4); and add (3) and (14) as follows:

• Page 10, Line 1722-54-103.5.  District total program - rules - legislative

• Page 10, Line 18declaration - repeal. (1) (a)  For the 2030-31 2031-32 budget year and

• Page 10, Line 19each budget year thereafter, the department of education shall use this

• Page 10, Line 20section to determine each district's total program. The district's total

• Page 10, Line 21program is available to the district to fund the costs of providing public

• Page 10, Line 22education, and, except as otherwise provided in section 22-54-105, the

• Page 10, Line 23district has the discretion to determine the amounts and purposes for

• Page 10, Line 24budgeting and expending its district total program money.

• Page 11, Line 1(c) (I)  Notwithstanding any provision of law to the contrary, for

• Page 11, Line 2the 2025-26 budget year through the 2029-30 2030-31 budget year, the

• Page 11, Line 3department of education shall calculate each district's total program

• Page 11, Line 4pursuant to this section for the purpose of determining each district's total

• Page 11, Line 5program pursuant to section 22-54-103.3. The district's total program is

• Page 11, Line 6available to the district to fund the costs of providing public education,

• Page 11, Line 7and, except as otherwise provided in section 22-54-105, the district has

• Page 11, Line 8the discretion to determine the amounts and purposes for budgeting and expending its district total program money.

• Page 11, Line 9(III)  This subsection (1)(c) is repealed, effective July 1, 2031 July 1, 2032.

• Page 11, Line 10(3)  Statewide base per pupil funding. (a) (I)  For the 2025-26

• Page 11, Line 11budget year, the statewide base per pupil funding is eight

• Page 11, Line 12thousand six hundred ninety-one dollars and eighty cents

• Page 11, Line 13($8,691.80), which is an amount equal to eight thousand four

• Page 11, Line 14hundred ninety-six dollars and thirty-eight cents ($8,496.38),

• Page 11, Line 15supplemented by one hundred ninety-five dollars and forty-two cents ($195.42) to account for inflation.

• Page 11, Line 16(II)  This subsection (3)(a) is repealed, effective July 1, 2031.

• (b)  (Reserved)

• Page 11, Line 17(4)  Funded pupil count. Funded pupil count is:

• Page 11, Line 18(a) (I)  For the 2025-26 budget year, the district's online pupil

• Page 11, Line 19enrollment for the applicable budget year plus the district's supplemental

• Page 11, Line 20kindergarten enrollment for the applicable budget year plus the district's

• Page 11, Line 21extended high school pupil enrollment for the applicable budget year plus the greater of:

• Page 11, Line 22(I)  (A)  The district's pupil enrollment for the applicable budget year;

• Page 12, Line 1(II)  (B)  The average of the district's pupil enrollment for the

• Page 12, Line 2applicable budget year and the district's pupil enrollment for the immediately preceding budget year;

• Page 12, Line 3(III)  (C)  The average of the district's pupil enrollment for the

• Page 12, Line 4applicable budget year and the district's pupil enrollment for the two immediately preceding budget years; or

• Page 12, Line 5(IV)  (D)  The average of the district's pupil enrollment for the

• Page 12, Line 6applicable budget year and the district's pupil enrollment for the three immediately preceding budget years.

• Page 12, Line 7(b) (I)  (II)  Notwithstanding any provision of law to the contrary,

• Page 12, Line 8for purposes of this subsection (4)(a), of this section, a district's funded

• Page 12, Line 9pupil count includes the certified pupil enrollment and online pupil

• Page 12, Line 10enrollment of each operating institute charter school for which the district

• Page 12, Line 11is the accounting district, as provided pursuant to subsections (4)(b)(II)

• Page 12, Line 12and (4)(b)(III) subsections (4)(a)(III) and (4)(a)(IV) of this section. The

• Page 12, Line 13department of education shall add the institute charter school's certified

• Page 12, Line 14pupil enrollment and online pupil enrollment to the funded pupil count of

• Page 12, Line 15the district prior to calculating the district's total program pursuant to this section.

• Page 12, Line 16(II)  (III)  For purposes of subsection (4)(b)(I) subsection

• Page 12, Line 17(4)(a)(II) of this section, each operating institute charter school's certified pupil enrollment is the greater of:

• Page 12, Line 18(A)  The operating institute charter school's pupil enrollment for the applicable budget year;

• Page 12, Line 19(B)  The average of the operating institute charter school's pupil

• Page 12, Line 20enrollment for the applicable budget year and the operating institute

• Page 13, Line 1charter school's pupil enrollment for the immediately preceding budget year;

• Page 13, Line 2(C)  The average of the operating institute charter school's pupil

• Page 13, Line 3enrollment for the applicable budget year and the operating institute

• Page 13, Line 4charter school's pupil enrollment for the two immediately preceding budget years; or

• Page 13, Line 5(D)  The average of the operating institute charter school's pupil

• Page 13, Line 6enrollment for the applicable budget year and the operating institute

• Page 13, Line 7charter school's pupil enrollment for the three immediately preceding budget years.

• Page 13, Line 8(III)  (IV)  Notwithstanding any provision of law to the contrary,

• Page 13, Line 9for purposes of subsection (4)(b)(II) subsection (4)(a)(III) of this

• Page 13, Line 10section, an operating institute charter school's pupil enrollment includes

• Page 13, Line 11its online student enrollment, except for multi-district online school student enrollment.

• Page 13, Line 12(c)  (V)  The general assembly finds and declares that for the

• Page 13, Line 13purposes of section 17 of article IX of the state constitution, averaging a

• Page 13, Line 14district's pupil enrollment for the applicable budget year and the district's

• Page 13, Line 15pupil enrollment for the three immediately preceding budget years

• Page 13, Line 16pursuant to this subsection (4) subsection (4)(a), and averaging an

• Page 13, Line 17operating institute charter school's student enrollment and online pupil

• Page 13, Line 18enrollment pursuant to this subsection (4) subsection (4)(a), is a

• Page 13, Line 19program for accountable education reform and may therefore receive

• Page 13, Line 20funding from the state education fund created in section 17 (4) of article IX of the state constitution.

• Page 13, Line 21(d) (I)  (VI) (A)  Notwithstanding any provision of law to the

• Page 13, Line 22contrary, for the purposes of this subsection (4) subsection (4)(a), a

• Page 14, Line 1district's pupil enrollment for the applicable budget year and a district's

• Page 14, Line 2pupil enrollment for a preceding budget year do not include a pupil who

• Page 14, Line 3is or was enrolled in a charter school that was originally authorized by the

• Page 14, Line 4district but was subsequently converted, on or after July 1, 2010, to an

• Page 14, Line 5institute charter school or to a charter school of a district contiguous to the originally original authorizing district.

• Page 14, Line 6(II)  (B)  Notwithstanding any provision of this subsection (4)

• Page 14, Line 7subsection (4)(a) to the contrary, for the purposes of this subsection (4)

• Page 14, Line 8subsection (4)(a), if a district's funded pupil count calculated pursuant

• Page 14, Line 9to this subsection (4) subsection (4)(a), for a budget year is fewer than

• Page 14, Line 10sixty students, the district's funded pupil count for the budget year is sixty students.

• Page 14, Line 11(b) (I)  For the 2026-27 budget year, and each budget year

• Page 14, Line 12thereafter, the district's online pupil enrollment for the

• Page 14, Line 13applicable budget year plus the district's supplemental

• Page 14, Line 14kindergarten enrollment for the applicable budget year plus

• Page 14, Line 15the district's extended high school pupil enrollment for the applicable budget year plus the greater of:

• Page 14, Line 16(A)  The district's pupil enrollment for the applicable budget year;

• Page 14, Line 17(B)  The average of the district's pupil enrollment for the

• Page 14, Line 18applicable budget year and the district's pupil enrollment for the immediately preceding budget year; or

• Page 14, Line 19(C)  The average of the district's pupil enrollment for the

• Page 14, Line 20applicable budget year and the district's pupil enrollment for the two immediately preceding budget years.

• Page 14, Line 21(II)  Notwithstanding any provision of law to the

• Page 15, Line 1contrary, for purposes of this subsection (4)(b), a district's

• Page 15, Line 2funded pupil count includes the certified pupil enrollment and

• Page 15, Line 3online pupil enrollment of each operating institute charter

• Page 15, Line 4school for which the district is the accounting district, as

• Page 15, Line 5provided pursuant to subsections (4)(b)(III) and (4)(b)(IV) of this

• Page 15, Line 6section. The department of education shall add the institute

• Page 15, Line 7charter school's certified pupil enrollment and online pupil

• Page 15, Line 8enrollment to the funded pupil count of the district prior to

• Page 15, Line 9calculating the district's total program pursuant to this section.

• Page 15, Line 10(III)  For purposes of subsection (4)(b)(II) of this section,

• Page 15, Line 11each operating institute charter school's certified pupil enrollment is the greater of:

• Page 15, Line 12(A)  The operating institute charter school's pupil enrollment for the applicable budget year;

• Page 15, Line 13(B)  The average of the operating institute charter

• Page 15, Line 14school's pupil enrollment for the applicable budget year and

• Page 15, Line 15the operating institute charter school's pupil enrollment for the immediately preceding budget year; and

• Page 15, Line 16(C)  The average of the operating institute charter

• Page 15, Line 17school's pupil enrollment for the applicable budget year and

• Page 15, Line 18the operating institute charter school's pupil enrollment for the two immediately preceding budget years.

• Page 15, Line 19(IV)  Notwithstanding any provision of law to the

• Page 15, Line 20contrary, for purposes of subsection (4)(b)(III) of this section, an

• Page 15, Line 21operating institute charter school's pupil enrollment includes

• Page 15, Line 22its online student enrollment, except for multi-district online school student enrollment.

• Page 16, Line 1(V)  The general assembly finds and declares that for the

• Page 16, Line 2purposes of section 17 of article IX of the state constitution,

• Page 16, Line 3averaging a district's pupil enrollment for the applicable

• Page 16, Line 4budget year and the district's pupil enrollment for the two

• Page 16, Line 5immediately preceding budget years pursuant to this subsection

• Page 16, Line 6(4)(b), and averaging an operating institute charter school's

• Page 16, Line 7student enrollment and online pupil enrollment pursuant to

• Page 16, Line 8this subsection (4)(b), is a program for accountable education

• Page 16, Line 9reform and may therefore receive funding from the state

• Page 16, Line 10education fund created in section 17 (4) of article IX of the state constitution.

• Page 16, Line 11 (VI) (A)  Notwithstanding any provision of law to the

• Page 16, Line 12contrary, for the purposes of this subsection (4)(b), a district's

• Page 16, Line 13pupil enrollment for the applicable budget year and a district's

• Page 16, Line 14pupil enrollment for a preceding budget year do not include a

• Page 16, Line 15pupil who is or was enrolled in a charter school that was

• Page 16, Line 16originally authorized by the district but was subsequently

• Page 16, Line 17converted, on or after July 1, 2010, to an institute charter

• Page 16, Line 18school or to a charter school of a district contiguous to the original authorizing district.

• Page 16, Line 19(B)  Notwithstanding any provision of this subsection

• Page 16, Line 20(4)(b) to the contrary, for the purposes of this subsection (4)(b),

• Page 16, Line 21if a district's funded pupil count calculated pursuant to this

• Page 16, Line 22subsection (4)(b) for a budget year is fewer than sixty students,

• Page 16, Line 23the district's funded pupil count for the budget year is sixty

• Page 16, Line 24students.

• Page 17, Line 1(c)  Notwithstanding subsections (4)(a) and (4)(b) of this

• Page 17, Line 2section, if, for the 2026-27 budget year, each district's total

• Page 17, Line 3program is not determined pursuant to section 22-54-103.3 (3)(b),

• Page 17, Line 4then funded pupil count is determined pursuant to subsection

• Page 17, Line 5(4)(a) of this section for the 2026-27 budget year and each budget year thereafter.

• Page 17, Line 6(d) (I)  Notwithstanding subsection (4)(b) of this section, if

• Page 17, Line 7the state education fund balance is projected to be less than

• Page 17, Line 8two hundred million dollars as of June 30, 2027, based on

• Page 17, Line 9information contained in the March 2027 revenue forecast

• Page 17, Line 10prepared by the legislative council staff, then for the 2027-28

• Page 17, Line 11budget year and each budget year thereafter, the general

• Page 17, Line 12assembly shall implement a smoothing factor or the funded

• Page 17, Line 13pupil count is the district's online pupil enrollment for the

• Page 17, Line 14applicable budget year plus the district's supplemental

• Page 17, Line 15kindergarten enrollment for the applicable budget year plus

• Page 17, Line 16the district's extended high school pupil enrollment for the applicable budget year plus the greater of:

• Page 17, Line 17(A)  The district's pupil enrollment for the applicable budget year; or

• Page 17, Line 18(B)  The average of the district's pupil enrollment for the

• Page 17, Line 19applicable budget year and the district's pupil enrollment for the immediately preceding budget year.

• Page 17, Line 20(II)  Notwithstanding any provision of law to the

• Page 17, Line 21contrary, for purposes of this subsection (4)(d), a district's

• Page 17, Line 22funded pupil count includes the certified pupil enrollment and

• Page 17, Line 23online pupil enrollment of each operating institute charter

• Page 18, Line 1school for which the district is the accounting district, as

• Page 18, Line 2provided pursuant to subsections (4)(d)(III) and (4)(d)(IV) of this

• Page 18, Line 3section. The department of education shall add the institute

• Page 18, Line 4charter school's certified pupil enrollment and online pupil

• Page 18, Line 5enrollment to the funded pupil count of the district prior to

• Page 18, Line 6calculating the district's total program pursuant to this section.

• Page 18, Line 7(III)  For purposes of subsection (4)(d)(II) of this section,

• Page 18, Line 8each operating institute charter school's certified pupil enrollment is the greater of:

• Page 18, Line 9(A)  The operating institute charter school's pupil enrollment for the applicable budget year; or

• Page 18, Line 10(B)  The average of the operating institute charter

• Page 18, Line 11school's pupil enrollment for the applicable budget year and

• Page 18, Line 12the operating institute charter school's pupil enrollment for the immediately preceding budget year.

• Page 18, Line 13(IV)  Notwithstanding any provision of law to the

• Page 18, Line 14contrary, for purposes of subsection (4)(d)(III) of this section, an

• Page 18, Line 15operating institute charter school's pupil enrollment includes

• Page 18, Line 16its online student enrollment, except for multi-district online school student enrollment.

• Page 18, Line 17(V) (A)  Notwithstanding any provision of law to the

• Page 18, Line 18contrary, for the purposes of this subsection (4)(d), a district's

• Page 18, Line 19pupil enrollment for the applicable budget year does not

• Page 18, Line 20include a pupil who is or was enrolled in a charter school that

• Page 18, Line 21was originally authorized by the district but was subsequently

• Page 18, Line 22converted, on or after July 1, 2010, to an institute charter

• Page 19, Line 1school or to a charter school of a district contiguous to the original authorizing district.

• Page 19, Line 2(B)  Notwithstanding any provision of this subsection

• Page 19, Line 3(4)(d) to the contrary, for the purposes of this subsection (4)(d),

• Page 19, Line 4if a district's funded pupil count calculated pursuant to this

• Page 19, Line 5subsection (4)(d) for a budget year is fewer than sixty students,

• Page 19, Line 6the district's funded pupil count for the budget year is sixty students.

• Page 19, Line 7(14)  Total program funding. (a) (I)  For the 2025-26 budget

• Page 19, Line 8year, the department of education and the staff of the

• Page 19, Line 9legislative council shall determine, based on budget

• Page 19, Line 10projections, the amount to ensure that for the 2025-26 budget

• Page 19, Line 11year, the sum of total program funding for all districts,

• Page 19, Line 12including funding for institute charter schools, is at least ten

• Page 19, Line 13billion thirty-five million six hundred fifteen thousand nine

• Page 19, Line 14hundred seventeen dollars and eighty cents ($10,035,615,917.80);

• Page 19, Line 15except that the department of education and the staff of the

• Page 19, Line 16legislative council shall make mid-year revisions to replace

• Page 19, Line 17projections with actual figures, including actual pupil

• Page 19, Line 18enrollment, assessed valuations, and specific ownership tax

• Page 19, Line 19revenue from the prior year, to determine any necessary

• Page 19, Line 20changes in the amount to maintain total program funding for the applicable budget year.

• Page 19, Line 21(II)  This subsection (14)(a) is repealed, effective July 1, 2031.

• Page 19, Line 22(b)  (Reserved)

• Page 19, Line 23SECTION 5.  In Colorado Revised Statutes, 22-54-104, amend (1)(c)(I) and (8); and add (7)(i) as follows:

• Page 20, Line 122-54-104.  District total program - legislative declaration -

• Page 20, Line 2definitions - repeal. (1) (c) (I)  Notwithstanding any provision of law to

• Page 20, Line 3the contrary, for the 2025-26 budget year through the 2029-30 2030-31

• Page 20, Line 4budget year, the department of education shall calculate each district's

• Page 20, Line 5total program pursuant to this section for the purpose of determining each

• Page 20, Line 6district's total program pursuant to section 22-54-103.3. The district's total

• Page 20, Line 7program is available to the district to fund the costs of providing public

• Page 20, Line 8education, and, except as otherwise provided in section 22-54-105, the

• Page 20, Line 9district has the discretion to determine the amounts and purposes for budgeting and expending its district total program money.

• Page 20, Line 10(7) (i)  Notwithstanding any provision of this subsection

• Page 20, Line 11(7), for the 2027-28 budget year and each budget year

• Page 20, Line 12thereafter, when calculating each district's total program

• Page 20, Line 13pursuant to this section for the purpose of determining a

• Page 20, Line 14district's total program pursuant to section 22-54-103.3, the

• Page 20, Line 15department of education shall use the same funded pupil count

• Page 20, Line 16that it uses pursuant to section 22-54-103.5 (4) for the purpose of

• Page 20, Line 17determining a district's total program pursuant to section 22-54-103.3.

• Page 20, Line 18(8)  This section is repealed, effective July 1, 2031 July 1, 2032.

• Page 20, Line 19SECTION 6.  In Colorado Revised Statutes, 22-54-104.6, amend (3) introductory portion and (12); and repeal (4) and (11.5) as follows:

• Page 20, Line 2022-54-104.6.  Implementation of at-risk measure - working

• Page 20, Line 21group - creation - department duties - reports - legislative declaration

• Page 20, Line 22- definitions - repeal. (3)  Beginning in the 2025-26 2026-27 budget

• Page 20, Line 23year, there is created a new at-risk measure in the public school funding

• Page 21, Line 1formula for identifying students who are at risk of below-average

• Page 21, Line 2academic outcomes because of socioeconomic disadvantage or poverty.

• Page 21, Line 3The new at-risk measure replaces the at-risk measure in effect for the

• Page 21, Line 42024-25 2025-26 budget year. The new at-risk measure is designed to

• Page 21, Line 5allocate financial resources to public schools to serve the needs of at-risk students. The new at-risk measure includes:

• Page 21, Line 6(4)  On or before August 15, 2022, the commissioner shall

• Page 21, Line 7convene a working group to prepare for the implementation in the

• Page 21, Line 82024-25 budget year of the new at-risk measure created in subsection (3) of this section.

• Page 21, Line 9(11.5) (a)  In order to prepare for the implementation of the new

• Page 21, Line 10at-risk measure for the 2024-25 budget year, the department of education

• Page 21, Line 11shall conduct pre-implementation modeling and testing of the new at-risk

• Page 21, Line 12measure. At a minimum, the department shall simulate 2024-25 budget

• Page 21, Line 13year total program calculations, including the new at-risk measure

• Page 21, Line 14recommended by the working group instead of the at-risk measure in effect for the 2023-24 budget year.

• Page 21, Line 15(b)  Not later than January 5, 2024, the commissioner of education

• Page 21, Line 16shall submit a report to the education committees of the senate and house

• Page 21, Line 17of representatives, or any successor committees, and the joint budget committee, including:

• Page 21, Line 18(I)  A summary of the outcomes of the modeling and testing using

• Page 21, Line 19the new at-risk measure, and the anticipated effects on the cost of total program funding;

• Page 21, Line 20(II)  An identification of issues encountered in the modeling and testing using the new at-risk measure; and

• Page 21, Line 21(III)  Recommendations for any legislation necessary to implement

• Page 22, Line 1the new at-risk measure for the 2024-25 budget year, as well as financial resources needed to administer the new at-risk measure.

• Page 22, Line 2(12)  Subsections (4) to (11) Subsections (5)to (11) of this section are repealed, effective July 1, 2025 July 1, 2026.

• Page 22, Line 3SECTION 7.  Safety clause. The general assembly finds,

• Page 22, Line 4determines, and declares that this act is necessary for the immediate

• Page 22, Line 5preservation of the public peace, health, or safety or for appropriations for

• Page 22, Line 6the support and maintenance of the departments of the state and state institutions.