Source: L. 94: Entire article added with relocations, p. 789, � 2, effective April 27. L. 96: Entire section repealed, p. 1235, � 72, effective August 7.
22-54-104.6. Implementation of at-risk measure - legislative declaration - definitions. (1) (a) The general assembly finds and declares that implementing an improved at-risk measure for identifying students who are at risk of below-average academic performance because of socioeconomic disadvantages or poverty will benefit Colorado students by:
(I) Ensuring that public schools are able to participate in universal free meals programs and reducing the paperwork and administrative burden on public schools participating in those programs;
(II) Identifying at-risk students directly through their participation in certain public benefit programs without the need to collect forms or other verification of eligibility, which often leads to the undercounting of students in the public schools that need resources to serve these students; and
(III) Recognizing factors beyond household income that place a student at risk of below-average academic performance.
(b) Therefore, it is the intent of the general assembly to continuously improve the construction and implementation of the at-risk measure for use in the state's public school funding formula.
(1.5) (a) In order to account for students who are at risk of below-average academic performance and education outcomes because of socioeconomic disadvantages or poverty, but who may not qualify for free or reduced-price lunch, the department of education shall collect data necessary to identify individual student census block groups.
(b) Notwithstanding subsection (1.5)(a) of this section, the state board may promulgate rules that direct the department of education to suspend the collection of data pursuant to subsection (1.5)(a) of this section, if the collected data indicates that the student population identified in subsection (1.5)(a) of this section is substantially similar to the at-risk student population that is identified through free and reduced-price lunch and direct certification. The state board may also promulgate rules that direct the department of education to re-start the collection of data pursuant to subsection (1.5)(a) of this section, after a suspension of data collection.
(2) to (11.7) Repealed.
(12) Subsections (2) to (11.7) of this section are repealed, effective July 1, 2025.
Source: L. 2022: Entire section added, (HB 22-1202), ch. 150, p. 960, � 1, effective May 3. L. 2023: IP(3), (4), (10)(b), and (12) amended and (11.3), (11.5), and (11.7) added (SB 23-287), ch. 189, p. 927, � 13, effective May 15. L. 2024: IP(3) amended, (SB 24-188), ch. 235, p. 1473, � 6, effective May 23. L. 2025: IP(1)(a), (1)(b), and (12) amended and (1.5) added, (HB 25-1320), ch. 236, p. 1170, � 18, effective May 23.
Editor's note: Subsection (12) provided for the repeal of subsections (2) to (11.7), effective July 1, 2025. (See L. 2025, p. 1170.)
Cross references: For the legislative declaration in SB 23-287, see section 1 of chapter 189, Session Laws of Colorado 2023. For the legislative declaration in SB 24-188, see section 1 of chapter 235, Session Laws of Colorado 2024. For the legislative declaration in HB 25-1320, see section 1 of chapter 236, Session Laws of Colorado 2025.
22-54-104.7. Public school finance - task force - creation - duties - report - definitions - repeal. (Repealed)
Source: L. 2023: Entire section added, (SB 23-287), ch. 189, p. 928, � 14, effective May 15.
Editor's note: Subsection (10) provided for the repeal of this section, effective July 1, 2025. (See L. 2023, p. 928.)
22-54-105. Instructional supplies and materials - capital reserve and insurance reserve - at-risk funding - preschool funding. (1) (a) Prior to the 2009-10 budget year, every district shall budget the amount determined pursuant to paragraph (b) of this subsection (1) to be allocated, in the discretion of the board of education, to the instructional supplies and materials account, the instructional capital outlay account, or the other instructional purposes account in the general fund created by section 22-45-103 (1)(a)(II), or among such accounts. Moneys may be transferred among the three accounts. The moneys in such accounts shall be used for the purposes set forth in section 22-45-103 (1)(a)(II) and may not be expended by the district for any other purpose. Any moneys in such accounts which are not projected to be expended during a budget year shall be budgeted for the purposes set forth in section 22-45-103 (1)(a)(II) in the next budget year. Nothing in this subsection (1) shall be construed to require that interest on moneys in such accounts be specifically allocated to such accounts. Any moneys remaining in any such account that have not been expended prior to the 2009-10 budget year shall be budgeted for the purposes set forth in section 22-45-103 (1)(a)(II) in the 2009-10 budget year or any budget year thereafter.
(b) (I) The amount to be budgeted in any budget year prior to the 2009-10 budget year shall be the amount determined by multiplying one hundred thirty-four dollars by the district's funded pupil count minus the district's online pupil enrollment.
(II) (A) For the 1998-99 budget year through the 2007-08 budget year, the dollar amount required to be budgeted per pupil pursuant to this paragraph (b) shall be increased each year by the same percentage that the statewide base per pupil funding is increased pursuant to section 22-54-104 (5). For the 2008-09 budget year, the minimum dollar amount required to be budgeted per pupil pursuant to this paragraph (b) shall be increased by the rate of inflation. The amount of any increase pursuant to this paragraph (b) shall be rounded to the nearest dollar.
(B) Repealed.
(III) Repealed.
(IV) (Deleted by amendment, L. 2009, (SB 09-256), ch. 294, p. 1548, � 3, effective May 21, 2009.)
(c) For purposes of this subsection (1), instructional supplies and materials include, but are not limited to, supplies, textbooks, library books, periodicals, and other supplies and materials. Instructional capital outlay includes those expenditures which result in the acquisition of fixed assets for instructional purposes, or additions thereto, which the board of education anticipates will have benefits for more than one year. Other instructional purposes include expenses incurred in providing transportation for pupils to and from school-sponsored instructional activities which occur outside the classroom and costs incurred for repair or maintenance services for equipment which is directly used for instructional purposes. Instructional supplies and materials, instructional capital outlay, and other instructional purposes are limited to those functions accounts and objects accounts as prescribed by the state board of education.
(d) (Deleted by amendment, L. 2009, (SB 09-256), ch. 294, p. 1548, � 3, effective May 21, 2009.)
(2) (a) Except as otherwise provided in paragraph (c) of this subsection (2), prior to the 2009-10 budget year, every district shall budget the amount determined pursuant to paragraph (b) of this subsection (2) to be allocated, in the discretion of the board of education, to the capital reserve fund created by section 22-45-103 (1)(c), to a fund or an account within the general fund established in accordance with generally accepted accounting principles solely for the management of risk-related activities as identified in section 24-10-115, C.R.S., and article 13 of title 29, C.R.S., or among such allowable funds and accounts. Such moneys shall be used for the purposes set forth in section 22-45-103 (1)(c) and (1)(e) and may not be expended by the district for any other purpose. The board of education may transfer moneys among these allowable funds and accounts when such transfer is deemed necessary by the board. Any moneys remaining in any such fund or account that have not been expended prior to the 2009-10 budget year shall be budgeted for the purposes set forth in section 22-45-103 (1)(c) and (1)(e) in the 2009-10 budget year or any budget year thereafter.
(b) (I) The amount to be budgeted in any budget year prior to the 2009-10 budget year shall be the amount determined by multiplying two hundred sixteen dollars by the district's funded pupil count minus the district's online pupil enrollment. Such amount shall be the minimum required to be budgeted, and the district may elect to budget up to eight hundred dollars multiplied by the district's funded pupil count minus the district's online pupil enrollment.
(II) (A) For the 1998-99 budget year through the 2007-08 budget year, the minimum dollar amount required to be budgeted per pupil pursuant to this paragraph (b) shall be increased each year by the same percentage that the statewide base per pupil funding is increased pursuant to section 22-54-104 (5). For the 2008-09 budget year, the minimum dollar amount required to be budgeted per pupil pursuant to this paragraph (b) shall be increased by the rate of inflation. The amount of any increase pursuant to this paragraph (b) shall be rounded to the nearest dollar.
(B) Repealed.
(III) For the 2000-01 budget year through the 2008-09 budget year, the amount required to be budgeted pursuant to this paragraph (b) shall be reduced by an amount determined by multiplying the minimum dollar amount required to be budgeted for that budget year pursuant to subparagraph (II) of this paragraph (b) by the number of pupils enrolled in charter schools within the district.
(c) For the 1999-2000 budget year and any budget year thereafter, if a district has moneys in its capital reserve fund equal to or in excess of five times the minimum dollar amount required to be budgeted per pupil pursuant to paragraph (b) of this subsection (2) multiplied by the district's funded pupil count minus the district's online pupil enrollment for the applicable budget year, the board of education of the district may determine whether to budget the minimum dollar amount per pupil required by this subsection (2) in that budget year, budget a lesser amount, or budget no amount at all. Such determination shall be made by the board of education on an annual basis based upon the capital outlay expenditure requirements of the district.
(d) Repealed.
(e) (Deleted by amendment, L. 2009, (SB 09-256), ch. 294, p. 1548, � 3, effective May 21, 2009.)
(3) (a) Every district that receives at-risk funding pursuant to this article 54 shall expend in total at least seventy-five percent of the district's at-risk funding on direct instruction or staff development, or both, for the educational program of at-risk pupils in the district.
(b) to (d) Repealed.
(4) (Deleted by amendment, L. 2008, p. 1195, � 6, effective May 22, 2008.)
Source: L. 94: Entire article added with relocations, p. 789, � 2, effective April 27. L. 95: (1)(b) amended, p. 619, � 20, effective May 22. L. 96: (1)(b), (1)(c), and (2)(b) amended, p. 1792, � 5, effective June 4. L. 97: (1)(b), (1)(c), (2)(a), and (2)(b) amended and (3) added, pp. 580, 583, �� 4, 9, 10, effective April 30. L. 98: (1)(c) amended, p. 969, � 12, effective May 27. L. 99: (2)(a) amended and (2)(c) added, p. 179, � 12, effective March 30; (2)(b)(III) added, p. 174, � 2, effective March 30. L. 2001: (3) amended, p. 351, � 15, effective April 16; (4) added, p. 558, � 1, effective May 23; (1)(b)(III) added, p. 564, � 1, effective May 29. L. 2002: (1)(b)(I), (1)(b)(III), (2)(b)(I), and (2)(c) amended and (2)(d) added, p. 1736, � 6, effective June 7. L. 2003: (1)(b)(III)(A) and (1)(b)(III)(C) amended and (2)(d) repealed, pp. 516, 522, �� 5, 15, effective March 5; (1)(b)(II), (2)(b)(II), (3)(c), and (4) amended and (3)(d) repealed, pp. 2123, 2141, �� 12, 47, effective May 22. L. 2006: (1)(b)(IV) added and (4) amended, pp. 660, 699, �� 2, 43, effective April 28; (1)(b)(II)(B), (2)(b)(II)(B), and (3)(c) repealed, p. 624, � 46, effective August 7. L. 2007: (2)(e) added, p. 735, � 4, effective May 9. L. 2008: (1)(b)(II)(A), (2)(b)(II)(A), and (4) amended, p. 1195, � 6, effective May 22. L. 2009: (1) and (2) amended, (SB 09-256), ch. 294, p. 1548, � 3, effective May 21. L. 2024: (3)(a) amended and (3)(b) repealed, (HB 24-1448), ch. 236, p. 1515, � 17, effective May 23.
Editor's note: Subsection (1)(b)(III)(E) provided for the repeal of subsection (1)(b)(III), effective July 1, 2003. (See L. 2001, p. 564.)
Cross references: For the legislative declaration contained in the 2008 act amending subsections (1)(b)(II)(A), (2)(b)(II)(A), and (4), see section 1 of chapter 286, Session Laws of Colorado 2008.
22-54-106. Local and state shares of district total program - legislative declaration - definition - repeal. (1) (a) (I) For property tax years before the 2020 property tax year, every district shall levy the number of mills determined pursuant to subsection (2)(a) of this section, and the amount of property tax revenue that a district is entitled to receive from the levy, assuming one hundred percent collection, along with the amount of specific ownership tax revenue paid to the district, as defined in section 22-54-103 (11), is the district's share of its total program.
(II) Repealed.
(III) For the 2020 property tax year and property tax years thereafter, each district shall levy the number of mills determined pursuant to subsection (2.1) of this section. The amount of property tax revenue that a district is entitled to receive from the levy, less the amount of revenue attributable to the property tax credit described in subsection (2.1)(d) of this section, assuming one hundred percent collection, along with the amount of specific ownership tax revenue paid to the district is the district's share of its total program.
(b) (I) Except as provided in subsections (11) and (12) of this section, the state's share of a district's total program is the difference between the district's total program and the district's share of its total program.
(II) Repealed.
(2) Repealed.
(2.1) (a) (I) The general assembly finds that, for property tax years 1994 through 2006, subsection (2)(a)(III) of this section, as it existed before May 9, 2007, was wrongly interpreted and applied to reduce several districts' property tax mill levies to the number of mills that a district could levy under the property tax revenue limitation imposed by section 20 of article X of the state constitution, even though the district had obtained voter approval to retain and spend revenue in excess of that property tax revenue limitation. The general assembly finds, therefore, that the reductions in district mill levies for property tax years 1994 through 2006 were not authorized by statute and are void for purposes of determining a district's correct mill levy pursuant to this subsection (2.1) for the 2020 property tax year and property tax years thereafter, and the determination and levy of the correct number of mills that a district is required to levy pursuant to this subsection (2.1) does not require action by the district other than to certify the mill levy.
(II) The general assembly further finds that immediately correcting the unauthorized reductions in mill levies by restoring the district total program mill levies to the correct numbers of mills without awarding a property tax credit would work an unacceptable hardship on district taxpayers. The general assembly finds, therefore, that it is appropriate to correct the unauthorized reductions in mill levies by requiring the department of education to adopt a correction schedule by which districts must reduce the property tax credit awarded pursuant to subsection (2.1)(d) of this section and thereby give full effect to the restoration of the correct number of mills.
(b) For the 2020 property tax year, except as otherwise provided in subsection (2.1)(e) of this section for reorganized districts:
(I) A district that has obtained voter approval to retain and spend revenue in excess of the property tax revenue limitation imposed on the district by section 20 of article X of the state constitution shall levy the lesser of:
(A) Twenty-seven mills;
(B) The number of mills that the district would have been required to levy under subsection (2)(a) of this section for the 2020 property tax year if not for the unauthorized reductions in the district's mill levy in property tax years following the property tax year in which the district obtained voter approval to retain and spend revenue in excess of the property tax revenue limitation imposed on the district by section 20 of article X of the state constitution, which reductions resulted from the unauthorized application of subsection (2)(a)(III) of this section as it existed before May 9, 2007; or
(C) The number of mills that will generate property tax revenue in an amount equal to the district's total program for the applicable budget year minus the amount of specific ownership tax revenue paid to the district. Regardless of the applicability of section 22-54-104 (5)(g), for the purposes of this subsection (2.1)(b)(I)(C), a district's total program is the amount calculated pursuant to section 22-54-104 (2).
(II) A district that has not obtained voter approval to retain and spend revenue in excess of the property tax revenue limitation imposed on the district by section 20 of article X of the state constitution shall levy the lesser of:
(A) Twenty-seven mills;
(B) The number of mills the district levied in the preceding property tax year; or
(C) The number of mills that the district may levy under the property tax revenue limitation imposed on the district by section 20 of article X of the state constitution. In calculating local growth for purposes of determining the property tax revenue limitation imposed on a district by section 20 of article X of the state constitution, a district's student enrollment is the district's funded pupil count.
(c) For the 2021 property tax year and each property tax year thereafter, except as otherwise provided in subsection (2.1)(e) of this section for reorganized districts, each district shall levy the lesser of:
(I) The number of mills that will generate property tax revenue in an amount equal to the district's total program for the applicable budget year minus the amount of specific ownership tax revenue paid to the district.
(II) For a district that has not obtained voter approval to retain and spend revenue in excess of the property tax revenue limitation imposed on the district by section 20 of article X of the state constitution, the number of mills that the district may levy under the property tax revenue limitation imposed on the district by section 20 of article X of the state constitution. In calculating local growth for purposes of determining the property tax revenue limitation imposed on a district by section 20 of article X of the state constitution, a district's student enrollment is the district's funded pupil count.
(III) The number of mills levied in the preceding property tax year; or
(IV) Twenty-seven mills.
(d) (I) For the 2020 property tax year, if a district, pursuant to this subsection (2.1), is required to levy a greater number of mills than it levied in the 2019 property tax year, the district board of education by resolution shall grant a temporary property tax credit equal to the number of mills levied in the applicable property tax year that exceeds the number of mills levied in the 2019 property tax year.
(II) Beginning in the 2021 property tax year and for each property tax year thereafter through the 2039 property tax year, if a district, pursuant to subsection (2.1)(c) of this section, is required to levy a greater number of mills than it levied in the 2019 property tax year, the school district board of education shall grant a temporary property tax credit equal to the number of mills required for the applicable property tax year by the correction schedule adopted by the department of education pursuant to subsection (2.1)(d)(III) of this section.
(III) The department of education shall adopt a correction schedule to incrementally reduce the temporary property tax credits required in this subsection (2.1)(d) beginning in the 2021 property tax year. The correction schedule must apply in the same manner to each district and must ensure that:
(A) Each district is required to reduce its temporary property tax credit as quickly as possible but by no more than one mill each property tax year; and
(B) By the 2040 property tax year, each district is levying the number of mills required in subsection (2.1)(c) of this section without granting a temporary property tax credit.
(IV) Beginning in the 2021-22 budget year and for each budget year thereafter until the general assembly determines that the stabilization of the state budget no longer requires a reduction in the amount of the annual appropriation to fund the state's share of total program, the general assembly shall ensure that any amount of savings to the state share of total program that occurs as a result of the decrease in the district property tax credits pursuant to subsections (2.1)(d)(II) and (2.1)(d)(III) of this section continues to be appropriated as a portion of the state share of total program pursuant to this section.
(e) Notwithstanding any other provision of this subsection (2.1) to the contrary, for the 2020 property tax year and each property tax year thereafter, if there is a reorganization pursuant to article 30 of this title 22 that results in the creation of a new district, then in the first year of operation the new district shall levy the lesser of:
(I) Twenty-seven mills; or
(II) The number of mills that will generate property tax revenue in an amount equal to the district's total program for the first year of operation minus the amount of specific ownership tax revenue paid to the district.
(3) The property tax revenue a district is entitled to receive from the levy made pursuant to subsection (2) or (2.1) of this section for the 1994 property tax year and property tax years thereafter must be used to fund the district's share of its total program for the budget year beginning on July 1 of such property tax year, and the total amount of such revenue, less the amount of revenue that would be attributable to any mill levy tax credit granted pursuant to subsection (2.1)(d) of this section, is considered to be collected during such budget year for purposes of determining the state's share of the district's total program.
(4) (a) The general assembly shall make annual appropriations to fund the state's share of the total program of all districts and to fund all institute charter schools.
(b) In the event that the appropriation for the state's share of the total program of all districts, including funding for institute charter schools, under this article for any budget year, as established in the general appropriation act, is not sufficient to fully fund the state's share including funding for institute charter schools, the department of education shall submit a request for a supplemental appropriation in an amount which will fully fund the state's share including funding for institute charter schools. Such request shall be made to the general assembly during the fiscal year in which such underfunding occurs.
(c) If a supplemental appropriation is not made by the general assembly to fully fund the state's share of the total program of all districts including funding for institute charter schools or a supplemental appropriation is made to reduce the state's share of the total program of all districts including funding for institute charter schools, the state aid of each district and the funding for each institute charter school shall be reduced in accordance with the provisions of this paragraph (c). The total program of each district that receives state aid shall be reduced by a percentage determined by dividing the deficit in the appropriation or the reduction in the appropriation, whichever is applicable, by the total program of all districts that receive state aid. The state aid of each district shall be reduced by the amount of the reduction in the district's total program or the amount of state aid, whichever is less. The funding for each institute charter school shall be reduced in proportion to the reduction in the total program of the district from which the institute charter school's funding is withheld. The department of education shall see that the reduction in state aid required by this paragraph (c) is accomplished prior to the end of the budget year.
(d) (Deleted by amendment, L. 2010, (HB 10-1013), ch. 399, p. 1902, � 12, effective June 10, 2010.)
(5) (a) Except as otherwise provided in sections 22-54-107, 22-54-108, and 22-54-108.5, no district may certify a levy for its general fund in excess of that authorized by this section.
(b) No district is authorized to seek voter approval to impose additional mill levies for its general fund in excess of that authorized by this section and sections 22-54-107, 22-54-108, and 22-54-108.5. Therefore, voter approval obtained by any district in order to be capable of receiving additional revenues within the limitations on the district's fiscal year spending for any budget year under section 20 of article X of the state constitution does not constitute voter approval for such district to certify a levy for its general fund in excess of that authorized by this section and sections 22-54-107, 22-54-108, and 22-54-108.5.
(6) If a district does not certify at least the mill levy required by subsection (2) or (2.1) of this section, the department shall determine what the state's percentage share of the district's total program would have been had the district certified the required mill levy. The department of education shall reduce the district's state aid in an amount that will result in the state's percentage share of the district's total program remaining the same as if the district had certified the required mill levy.
(7) For the 1994 property tax year and property tax years thereafter, all mill levies authorized or required by this section or sections 22-54-107, 22-54-108, and 22-54-108.5 shall be rounded to the nearest one-thousandth of one mill.
(8) (Deleted by amendment, L. 2010, (HB 10-1013), ch. 399, p. 1902, � 12, effective June 10, 2010.)
(9) If a district reduces or ends business personal property taxes through action taken pursuant to section 20 (8)(b) of article X of the state constitution, the state's share of the district's total program for the budget year in which such action is taken and any budget year thereafter shall be the amount by which the district's total program exceeds the amount of specific ownership tax revenue paid to the district and the amount of property tax revenue which the district would have been entitled to receive if such action had not been taken by the district.
(10) (a) If a new district is created through a deconsolidation as described in section 22-30-102 (2)(a), the specific ownership tax revenue payable to the new district in the first year of operation shall be an amount equal to the ratio of the total valuation for assessment of taxable property located in the new district to the total valuation for assessment of taxable property located in the old district multiplied by the specific ownership tax revenue payable to the old district.
(b) Commencing with the first July specific ownership tax payment due after the new district is established and continuing until the new district receives its first payment of specific ownership tax revenues from the county treasurer, the department of education shall:
(I) Increase the state's share of the new district's total program by an amount equal to the ratio of the total valuation for assessment of taxable property located in the new district to the total valuation for assessment of taxable property located in the old district multiplied by the specific ownership tax revenue payable to the old district; and
(II) Reduce the state's share of the old district's total program by the same amount.
(11) Pursuant to the provisions of section 22-54-115, for each institute charter school, the department of education shall withhold from the state share of the institute charter school's accounting district the lesser of:
(a) An amount equal to one hundred percent of the adjusted district per pupil revenues, as defined in section 22-30.5-513 (1)(b), multiplied by the number of pupils enrolled in the institute charter school who are not online pupils plus one hundred percent of the district per pupil online funding multiplied by the number of online pupils enrolled in the institute charter school; or
(b) The total amount of the state share payable to the district.
(12) Any district that has obtained voter approval to retain and spend revenues in excess of the property tax revenue limitation imposed on the district by section 20 of article X of the state constitution and that, after March 16, 2009, obtains voter approval to again become subject to such property tax revenue limitation shall receive an amount of state aid that shall be calculated as if the district levied the number of mills that it would have levied in the applicable budget year had the district maintained its authority to retain and spend revenues in excess of such property tax revenue limitation.
Source: L. 94: Entire article added with relocations, p. 791, � 2, effective April 27; (8)(a) amended and (8)(d) added, p. 2832, � 2, effective January 1, 1995. L. 95: (1)(a)(I) and (2) amended, p. 617, � 18, effective May 22. L. 96: (1)(a)(I), (2)(a)(IV), (2)(b)(III), and (5) amended, pp. 1793, 1798, �� 6, 17, effective June 4; (2)(a) amended and (2)(c) and (10) added, pp. 64, 65, �� 20, 21, effective July 1. L. 97: (5) amended, p. 581, � 6, effective April 30. L. 2000: (5) amended, p. 485, � 7, effective April 28. L. 2003: (8)(a) amended, p. 2138, � 37, effective May 22. L. 2004: (1)(b) and (4) amended and (11) added, p. 1638, � 44, effective July 1. L. 2005: (4)(d) and (8)(e) added, p. 439, �� 16, 17, effective April 29. L. 2006: (1)(a)(II) and (2)(a)(IV) repealed, p. 625, � 47, effective August 7. L. 2007: (5) and (7) amended, p. 39, � 7, effective March 7; (2)(a) amended, p. 736, � 5, effective May 9. L. 2009: (1)(b) amended and (12) added, (SB 09-291), ch. 368, p. 1936, � 1, effective June 1. L. 2010: (1)(b) and (4)(c) amended, (HB 10-1318), ch. 34, p. 126, � 1, effective March 22; (2)(a)(II) amended, (HB 10-1369), ch. 246, p. 1099, � 5, effective May 21; (1)(b), (4)(d), and (8) amended, (HB 10-1013), ch. 399, p. 1902, � 12, effective June 10. L. 2011: (1)(b)(I) amended, (SB 11-238), ch. 300, p. 1446, � 2, effective June 8. L. 2015: (1)(b)(I), (2)(a)(II)(A), and (4)(c) amended and (1)(b)(II) repealed, (SB 15-267), ch. 295, p. 1201, � 2, effective June 5. L. 2020: (1)(a)(I), IP(2)(a), (3), and (6) amended and (1)(a)(III) and (2.1) added, (HB 20-1418), ch. 197, p. 950, � 33, effective June 30. L. 2021: (2.1)(a) and (2.1)(d) amended, (HB 21-1164), ch. 223, p. 1197, � 1, effective June 11. L. 2024: (2.1)(c)(I) and (2.1)(e)(II) amended and (2) repealed, (HB 24-1448), ch. 236, p. 1516, � 18, effective May 23.
Editor's note: Amendments to subsection (1)(b) by House Bill 10-1318 and House Bill 10-1013 were harmonized.
Cross references: For the legislative declaration in HB 20-1418, see section 1 of chapter 197, Session Laws of Colorado 2020.
22-54-106.5. Fiscal emergency restricted reserve - calculation of reserve amount. (1) For the 2009-10 budget year, the general assembly determines that a state financial crisis requires each district and the state charter school institute to budget an amount to a fiscal emergency restricted reserve pursuant to section 22-44-119. Using the total amount to be budgeted for the reserve as specified in subsection (3) of this section, the department of education shall calculate the amount to be budgeted to the fiscal emergency restricted reserve by each district and the state charter school institute. The amount budgeted by each district and the state charter school institute shall be released for expenditure by the district or for distribution to institute charter schools by the state charter school institute, as applicable, on January 29, 2010, if a negative supplemental appropriation to effect a recision of the total amount of restricted reserve as specified in subsection (3) of this section, or any portion thereof, has not been enacted and become law by said date.
(2) The department of education shall calculate the amount to be budgeted to the fiscal emergency restricted reserve for the 2009-10 budget year by dividing the total amount to be budgeted for the 2009-10 budget year, as specified in subsection (3) of this section, by the sum of the total program of all districts and institute charter school funding. The department shall calculate the amount to be budgeted by each district as an amount equal to the total restricted reserve multiplied by the district's total program as calculated pursuant to section 22-54-104 (2)(a)(VIII) or (2)(b), whichever is applicable. The department shall calculate the amount to be budgeted by the state charter school institute for each institute charter school based on the total restricted reserve multiplied by the total program of the accounting district for each institute charter school.
(3) For the 2009-10 budget year, the total amount of the restricted reserve shall be one hundred ten million dollars.
Source: L. 2009: Entire section added, (SB 09-256), ch. 294, p. 1551, � 4, effective May 21.
22-54-107. Buy-out of categorical programs - total program reserve fund levy. (1) (a) If a district levies the number of mills calculated pursuant to section 22-54-106 (2)(a)(II) for property tax years before the 2020 property tax year, or the number of mills calculated pursuant to section 22-54-106 (2.1)(c)(I) for the 2021 property tax year and property tax years thereafter, the district shall make an additional levy to generate property tax revenue in an amount equal to the amount of categorical support funds; except that the total of the two levies cannot exceed the lesser of the district's levy for the immediately preceding year, the district's allowable levy under the property tax revenue limitation imposed on the district by section 20 of article X of the state constitution if the district has not obtained voter approval to retain and spend revenues in excess of such property tax revenue limitation, or twenty-seven mills.
(b) If a district levies the number of mills calculated pursuant to section 22-54-106 (2.1)(b)(I)(C) for the 2020 property tax year, the district shall make an additional levy to generate property tax revenue in an amount equal to the amount of categorical support funds; except that the total of the two levies cannot exceed the lesser of twenty-seven mills or the number of mills described in section 22-54-106 (2.1)(b)(I)(B).
(2) When a district receives property tax revenue from the additional levy made pursuant to subsection (1) of this section or when a district has elected to keep excess property tax revenue collected during the 1992 calendar year pursuant to the provisions of section 22-44-103.5 (2)(b)(III)(C) or (2)(c)(III), the district shall use the property tax revenue to replace, on a pro rata basis, any categorical program support funds that the district would otherwise be eligible to receive from the state. The district shall replace the categorical program support funds by June 30 of the budget year in which the district collects the property tax revenue. The commissioner of education shall recover any unpaid categorical program support funds as provided in section 22-2-112 (6). The department of education shall use the amount of categorical program support funds replaced by property tax revenue pursuant to the provisions of this subsection (2) to make payments of categorical program support funds to eligible districts. If the appropriations for categorical programs are less than the total categorical program support funds to which districts are entitled under applicable provisions of law, the department of education shall apply the funds to categorical programs in the following order:
(a) First, transportation aid pursuant to article 51 of this title;
(b) Second, funds pursuant to the English Language Proficiency Act, article 24 of this title;
(c) Third, small attendance center aid pursuant to section 22-54-122; and
(d) Fourth, funds pursuant to the Exceptional Children's Educational Act, article 20 of this title.
(3) For purposes of this section, categorical program support funds that the district would otherwise be eligible to receive from the state means amounts that the district would have received from the state but that will be received instead from property tax revenues by reason of this section and includes funds pursuant to the Exceptional Children's Educational Act, article 20 of this title 22; funds pursuant to the English Language Proficiency Act, article 24 of this title 22; transportation aid pursuant to article 51 of this title 22; small attendance center aid pursuant to section 22-54-122; and career and technical education aid pursuant to part 1 of article 8 of title 23. Funds received by an administrative unit under the Exceptional Children's Educational Act, article 20 of this title 22, as reimbursement for services provided to children counted in the pupil enrollment of a district are considered as funds that a district would otherwise be eligible to receive for purposes of this subsection (3).
(4) In a budget year in which the provisions of section 22-54-104 (5)(g) apply, the department of education shall use the amount of categorical program support funds replaced by property tax revenue pursuant to the provisions of section 22-54-104 (5)(g)(IV) and (5)(g)(V) to make payments of categorical program support funds to eligible districts as specified in subsection (2) of this section.
(5) (a) For the 2016-17 budget year through the 2024-25 budget year, if a district levies the number of mills calculated pursuant to section 22-54-106 (2)(a)(II), (2.1)(b)(I)(C), or (2.1)(c)(I), whichever is applicable, and the additional mill levy described in subsection (1) of this section for categorical support funds, and the combined total of the two levies is less than the number of mills that the district levied in the preceding budget year, the district, in addition to the two levies, shall assess a number of mills equal to the difference between the combined total of the two levies and the number of mills levied in the preceding budget year. The district shall deposit the property tax revenue collected from the mills levied pursuant to this subsection (5) in the total program reserve fund created in section 22-45-103 (1)(k).
(b) For the 2025-26 budget year and each budget year thereafter, if a district levies the number of mills calculated pursuant to section 22-54-106 (2.1)(c)(I) and the additional mill levy described in subsection (1) of this section for categorical support funds, and the combined total of the two levies is less than the number of mills that the district levied in the preceding budget year, the district, in addition to the two levies, shall assess a number of mills equal to the difference between the combined total of the two levies and the number of mills levied in the preceding budget year. The revenue collected from the mills levied pursuant to this subsection (5)(b) must be available to the district to fund the costs of providing public education, and, except as otherwise provided in section 22-54-105, the amounts and purposes for which the money is budgeted and expended must be in the district's discretion.
Source: L. 94: Entire article added with relocations, p. 793, � 2, effective April 27. L. 95: (1) amended, p. 619, � 19, effective May 22. L. 98: (2) and (3) amended, p. 971, � 14, effective May 27. L. 2007: (1) amended, p. 736, � 6, effective May 9. L. 2010: (4) added, (HB 10-1369), ch. 246, p. 1099, � 6, effective May 21. L. 2016: IP(2) amended and (5) added, (HB 16-1422), ch. 351, pp. 1430, 1432, �� 3, 6, effective June 10. L. 2017: (3) amended, (SB 17-294), ch. 264, p. 1397, � 53, effective May 25. L. 2020: (1) and (5) amended, (HB 20-1418), ch. 197, p. 955, � 38, effective June 30. L. 2021: (3) amended, (HB 21-1264), ch. 308, p. 1874, � 9, effective June 23. L. 2024: (5) amended, (SB 24-188), ch. 235, p. 1473, � 7, effective May 23.
Cross references: For the legislative declaration in HB 20-1418, see section 1 of chapter 197, Session Laws of Colorado 2020. For the legislative declaration in HB 21-1264, see section 2 of chapter 308, Session Laws of Colorado 2021. For the legislative declaration in SB 24-188, see section 1 of chapter 235, Session Laws of Colorado 2024.
22-54-107.5. Authorization of additional local revenues for supplemental cost of living adjustment. (1) Except as otherwise provided in subsection (6) of this section, notwithstanding any law to the contrary, effective July 1, 2001, any district that desires to raise and expend local property tax revenues in excess of the district's total program, as determined in accordance with section 22-54-104, and in addition to any property tax revenues levied pursuant to sections 22-54-107 and 22-54-108, may submit the question of whether the district should be authorized to raise and expend additional local property tax revenues, subject to the limitations of paragraph (a) of subsection (3) of this section, thereby authorizing an additional levy in excess of the levy authorized under sections 22-54-106, 22-54-107, and 22-54-108, to provide a supplemental cost of living adjustment for the district for the then current budget year and each budget year thereafter. The question authorized by this subsection (1) shall be submitted at an election held in accordance with section 20 of article X of the state constitution and title 1, C.R.S.
(2) Except as otherwise provided in subsection (6) of this section, notwithstanding any law to the contrary, effective July 1, 2001, upon proper submittal to a district of a valid initiative petition, the district shall submit to the eligible electors of the district the question of whether the district should be authorized to raise and expend additional local property tax revenues in excess of the district's total program, as determined in accordance with section 22-54-104, and in addition to any property tax revenues levied pursuant to sections 22-54-107 and 22-54-108, subject to the limitations of paragraph (a) of subsection (3) of this section, thereby authorizing an additional levy in excess of the levy authorized under sections 22-54-106, 22-54-107, and 22-54-108, to provide a supplemental cost of living adjustment for the district for the then current budget year and each budget year thereafter. The question authorized by this subsection (2) shall be submitted at an election held in accordance with section 20 of article X of the state constitution and title 1, C.R.S. An initiative petition under this subsection (2) shall be signed by at least five percent of the eligible electors in the district at the time the petition is filed.
(3) (a) The maximum dollar amount of property tax revenue that a district can generate pursuant to this section for any given budget year shall not exceed the difference between what would be the district's total program for the 2001-02 budget year if calculated using the district's adjusted cost of living factor for the 2001-02 budget year and the district's total program for the 2001-02 budget year calculated pursuant to section 22-54-104.
(b) For purposes of determining a district's total program for the 2001-02 budget year if calculated using the district's adjusted cost of living factor, per pupil funding under section 22-54-104 (2)(a.5)(IV), as said section existed prior to its repeal in 2003, shall be calculated using the size factor used in the calculation for the prior budget year or the size factor used in the calculation for the 2001-02 budget year, whichever is less, the cost of living factor for the prior budget year, and the at-risk factor calculated for the district using a base at-risk factor of eleven and one-half percent.
(c) For purposes of this subsection (3), adjusted cost of living factor means the district's cost of living factor determined by dividing the district's cost of living amount by the lowest cost of living amount of all districts in the state from the current cost of living study, rounded to the nearest one-thousandth of one percent.
(4) If the maximum dollar amount of property tax revenue allowed for any given budget year pursuant to paragraph (a) of subsection (3) of this section will not be generated by the levy of the total number of mills levied by the district pursuant to this section for the immediately preceding budget year, the total number of mills levied by the district pursuant to this section shall not be increased unless the district submits the question of the increase to the eligible electors in the manner provided in subsection (1) of this section or unless the question of the increase is submitted to the eligible electors by initiative in the manner provided in subsection (2) of this section.
(5) Notwithstanding the provisions of section 20 of article X of the state constitution which allow districts to seek voter approval for spending and revenue increases, the provisions of subsection (3) of this section shall limit a district's authority to raise and expend local property tax revenues in excess of the district's total program as determined in accordance with section 22-54-104.
(6) On and after June 7, 2002, no question shall be submitted to the eligible electors of a district pursuant to subsection (1) or (2) of this section.
Source: L. 2001: Entire section added, p. 364, � 34, effective April 16. L. 2002: (1), (2), (3)(a), and (3)(b) amended and (6) added, p. 1740, � 13, effective June 7. L. 2004: (3)(b) amended, p. 1199, � 56, effective August 4.
22-54-107.7. Override mill levy match - working group - creation - report - repeal. (1) There is created by the legislative council staff an override mill levy match working group to meet during the 2024 interim and make recommendations concerning modifying the override mill levy match, created pursuant to section 22-54-107.9, to ensure more equitable funding distributions and greater access to funding for eligible districts and eligible institute charter schools, make recommendations concerning which eligible districts and eligible institute charter schools will receive a distribution from the mill levy override match fund pursuant to section 22-54-107.9 for the 2024-25 budget year, and to identify and analyze inequities between neighboring districts that have differing mill levy overrides, levels of property tax bases, or demonstrated levels of local effort.
(2) (a) The override mill levy match working group must include:
(I) Seven nonlegislative members who are chief financial officers appointed as follows:
(A) The speaker of the house of representatives shall appoint one member who is a chief financial officer of a rural district, one member who is a chief financial officer of a small rural district, one member who is a chief financial officer of a suburban district, and one member who is a chief financial officer of an urban district located in or near the Denver metropolitan area; and
(B) The senate minority leader shall appoint one member who is the chief financial officer of a rural district, one member who is the chief financial officer of a suburban district, and one member who is the chief financial officer of an urban district that is not located in or near the Denver metropolitan area.
(II) One member of the majority party in the house of representatives, appointed by the speaker of the house of representatives, who shall serve as the chair; and
(III) One member of the minority party in the senate, appointed by the minority leader of the senate, who shall serve as the vice-chair.
(b) Legislative council staff shall assist the override mill levy match working group in fulfilling its duties required pursuant to this section.
(3) (a) The override mill levy match working group shall not submit bill drafts as part of its recommendations.
(b) Meetings of the override mill levy match working group are subject to the open meetings provisions contained in part 4 of article 6 of title 24. Except as otherwise provided in part 2 of article 72 of title 24, or other applicable state or federal law, records of the override mill levy match working group are subject to part 2 of article 72 of title 24.
(4) The override mill levy match working group must meet at least three times but no more than five times during the 2024 legislative interim, unless additional meetings are authorized by the executive committee of the legislative council.
(5) On or before December 31, 2024, the override mill levy match working group shall submit a report to the executive committee of the legislative council, the education committees of the house of representatives and the senate, or any successor committees, and the joint budget committee concerning its recommendations to modify the override mill levy match.
(6) This section is repealed, effective July 1, 2026.
Source: L. 2024: Entire section added, (HB 24-1448), ch. 236, p. 1518, � 19, effective May 23.
22-54-107.9. Override mill levy match - calculation - distribution - fund created - definitions. (1) As used in this section, unless the context otherwise requires:
(a) Additional mill levy revenue per pupil amount means the amount of an eligible district's additional mill levy revenue, as defined in section 22-32-108.5, for a budget year, divided by the eligible district's funded pupil count for that budget year.
(b) Applicable budget year means the budget year in which the department distributes money pursuant to this section to a district.
(c) Applicable property tax year means the property tax year that ends during the applicable budget year.
(d) Department means the department of education created pursuant to section 24-1-115.
(e) Eligible district means a district for which the override mill capacity is less than the maximum number of override mills calculated for the district.
(f) Eligible institute charter school means an institute charter school that is located within the geographic boundaries of an eligible district.
(g) Maximum number of override mills means the number of override mills calculated for a district pursuant to subsection (3) of this section.
(h) Override mill capacity means the number of override mills calculated pursuant to subsection (4) of this section that a district may be expected to levy toward the district's maximum number of override mills.
(i) Override mill per pupil match amount means the amount of the override mill match amount that the department distributes to an eligible district pursuant to subsection (5)(a) of this section for a budget year, divided by the eligible district's funded pupil count for that budget year.
(j) Override mills means property tax mills that a district levies pursuant to section 22-54-108.
(k) Small rural district has the same meaning as provided in section 22-54-108.
(l) Repealed.
(2) (a) Beginning in the 2022-23 budget year and for each budget year thereafter, the department, in June of each budget year, shall calculate and distribute as a lump sum to each eligible district and each eligible institute charter school an override mill match amount as provided in this section. The department shall distribute the override mill match amount from money annually appropriated from the mill levy override match fund created in subsection (6) of this section. In a budget year in which the general assembly does not appropriate a sufficient amount to fully fund the distributions calculated pursuant to this section, the department shall reduce the amount of each eligible district's and each eligible institute charter school's distribution by the same percentage that the deficit bears to the amount required to fully fund the distributions calculated pursuant to this section.
(b) The override mill match amount that an eligible district receives pursuant to this section is deemed to be additional mill levy revenue that is subject to distribution to the charter schools of the district in the same manner that the district distributes other additional mill levy revenue that it collects to the charter schools of the district pursuant to section 22-32-108.5.
(3) (a) For the 2022-23 budget year and for each budget year thereafter, the department shall annually determine each district's maximum number of override mills, which is equal to the number of mills that a district may levy for the applicable property tax year to generate property tax revenue equal to twenty-five percent, or thirty percent in the case of a small rural district, of the district's:
(I) Total program for the applicable budget year, if ten percent or less of the district's funded pupil count for the applicable budget year is attributable to the district's online pupil enrollment; or
(II) Adjusted total program for the applicable budget year calculated pursuant to subsection (3)(b) of this section, if more than ten percent of the district's funded pupil count for the applicable budget year is attributable to the district's online pupil enrollment.
(b) If more than ten percent of a district's funded pupil count for the applicable budget year is attributable to the district's online pupil enrollment, the department shall calculate the district's adjusted total program as follows:
(I) The department shall reduce the district's online pupil enrollment in accordance with the following formula:
District online pupil enrollment - (((district funded pupil count - district online pupil enrollment) � .9) x .1)
(II) The department shall subtract from the district's total program for the applicable budget year an amount equal to the district's reduced online pupil enrollment, calculated pursuant to subsection (3)(b)(I) of this section, multiplied by the per pupil online funding amount for the applicable budget year as described in this article 54.
(3.5) (a) For the 2023-24 budget year, the department shall:
(I) Calculate for each district an amount equal to the district's assessed value of real property for the property tax year commencing on January 1, 2023, divided by the district's pupil enrollment divided by two thousand; and
(II) Determine the median amount of all calculations made pursuant to subsection (3.5)(a)(I) of this section.
(b) For each district, the department shall determine if:
(I) The district's amount calculated pursuant to subsection (3.5)(a)(I) of this section is less than the amount determined pursuant to subsection (3.5)(a)(II) of this section;
(II) The number of mills the district is authorized by its eligible electors to levy pursuant to section 22-54-108 is greater than zero; and
(III) The district has an amount that is greater than 0.9 after calculating the maximum number of mills the district is authorized to levy pursuant to section 22-54-108 (3)(b)(V) minus the number of mills the district is authorized by its eligible electors to levy pursuant to section 22-54-108.
(c) For each district that satisfies every condition described pursuant to subsection (3.5)(b) of this section, the department shall calculate for each district an amount equal to:
(Median amount determined pursuant to subsection (3.5)(a)(II) of this section - District amount calculated pursuant to subsection (3.5)(a)(I) of this section) x District's pupil enrollment.
(d) Notwithstanding any provision of this section, for the 2023-24 budget year, each district must receive the greater of the amount determined pursuant to subsection (3.5)(c) of this section or the amount determined pursuant to subsection (3) of this section.
(e) No later than June 10, 2024, the state treasurer shall transfer nine million one hundred thirty-five thousand six hundred ninety-eight dollars ($9,135,698) from the state education fund to the mill levy override match fund.
(4) (a) For the 2022-23 budget year and each budget year thereafter, the department shall identify the five-year average median household income for each district in the state, referred to in this section as the average median income, using the information reported by the United States census bureau's American community survey for the applicable budget year. The department shall determine the amount of the difference between the highest average median income and lowest average median income among all districts in the state, referred to in this section as the median income gap.
(b) Using the average median income for each district, the department shall annually determine for each district the district's override mill capacity, which is the number of override mills the district may be expected to levy toward the district's maximum number of override mills, using the following formula:
(((District average median income - lowest district average median income) � median income gap) x 20) + 15
(5) (a) For the 2022-23 budget year and each budget year thereafter, the department shall calculate the state match percentage for each eligible district by subtracting the eligible district's override mill capacity from the eligible district's maximum number of override mills, then dividing the remainder by the eligible district's override mill capacity. The department shall annually distribute to each eligible district an override mill match amount equal to the eligible district's state match percentage multiplied by the amount of property tax revenue generated by the number of override mills that the eligible district levies for the applicable property tax year.
(b) For the 2022-23 budget year and each budget year thereafter, the department shall distribute to each eligible institute charter school an override mill match amount equal to the override mill per pupil match amount for the eligible institute charter school's accounting district multiplied by the eligible institute charter school's pupil enrollment for the applicable budget year; except that the department shall ensure that the total per pupil amount distributed to an eligible institute charter school pursuant to this section and section 22-30.5-513.1 in a single budget year does not exceed the combined total of the additional mill levy revenue per pupil amount and override mill per pupil match amount of the eligible institute charter school's accounting district for the applicable budget year.
(6) (a) The mill levy override match fund is created in the state treasury. The fund consists of money appropriated or transferred to the fund by the general assembly. The state treasurer shall credit to the fund all interest and income derived from the deposit and investment of money in the fund. Subject to annual appropriation by the general assembly, for the 2022-23 budget year and each budget year thereafter, the department shall distribute money from the fund as described in this section. In addition, the department may expend a portion of the amount appropriated from the fund to pay the direct costs that the department incurs in implementing this section.
(b) On July 1, 2022, the state treasurer shall transfer ten million dollars from the general fund to the mill levy override match fund.
(7) (a) On July 1, 2023, the state treasurer shall transfer twenty-three million three hundred seventy-six thousand five hundred thirty-six dollars from the state education fund to the mill levy override match fund.
(a.5) On July 1, 2024, the state treasurer shall transfer fifteen million seven hundred fifteen thousand five hundred thirty-nine dollars ($15,715,539) from the state education fund to the mill levy override match fund.
(b) The general assembly finds and declares that for the purposes of section 17 of article ix of the state constitution, providing eligible school districts and eligible institute charter schools an override mill match pursuant to this section is a program for accountable education reform and may therefore receive funding from the state education fund created in section 17 (4) of article IX of the state constitution.
(8) Notwithstanding any provision of this section to the contrary, for the 2022-23 budget year and budget years thereafter, the department of education shall not calculate and distribute to an eligible district or an eligible institute charter school an override mill match amount as provided in this section if the sum of the district's override mills is equal to or greater than the district's override mill capacity.
Source: L. 2022: Entire section added, (SB 22-202), ch. 238, p. 1760, � 1, effective May 26. L. 2023: (7) and (8) added, (SB 23-287), ch. 189, p. 922, � 6, effective May 15. L. 2024: (1)(l) and (3)(b)(II) amended and (7)(a.5) added, (SB 24-188), ch. 235, p. 1474, � 8, effective May 23; (1)(l) repealed, (3)(b)(II) amended, and (3.5) added, (HB 24-1448), ch. 236, p. 1519, � 20, effective May 23.
Editor's note: (1) Amendments to subsection (3)(b)(II) by SB 24-188 and HB 24-1448 were harmonized.
(2) Subsection (1)(l) was amended in SB 24-188. Those amendments were superseded by the repeal of subsection (1)(l) in HB 24-1448.
Cross references: For the legislative declaration in SB 23-287, see section 1 of chapter 189, Session Laws of Colorado 2023. For the legislative declaration in SB 24-188, see section 1 of chapter 235, Session Laws of Colorado 2024.