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I_SFinance_2021A 11/05/2021 09:34:39 AM Committee Summary

PUBLIC
STAFF SUMMARY OF MEETING
INTERIM COMMITTEE  LEGISLATIVE INTERIM COMMITTEE ON SCHOOL FINANCE
Date 11/05/2021
Attendance
Baisley X
Coleman X
Kipp X
Larson X
Lundeen X
Zenzinger X
Kirkmeyer X
McCluskie X
Time 09:34:39 AM to 12:26:19 PM
Place SCR 357
This Meeting was called to order by McCluskie
This Report was prepared by Annie Kitch
Hearing Items Action Taken
Update on Poverty Study Committee Discussion Only
Update on Cost of Living Study Committee Discussion Only
Bill Draft Requests Committee Discussion Only

Update on Poverty Study - Committee Discussion Only


09:35:26 AM  

Kristen Blagg and Emily Gutierrez, representing the Urban Institute, provided an update on the Poverty Study. Ms. Blagg shared the project timeline, an explanation of the important terms included in the study, and an overview of the survey results. She shared that the team conducting the study received survey responses from many perspectives, including school and district leaders, advocates, and government stakeholders. The results showed that 62 percent of those who responded were “strongly” or ”somewhat” dissatisfied with the current at-risk measure (27 percent “strongly”). A total of 25 percent were “strongly” or “somewhat” satisfied (5 percent “strongly”). Respondents also addressed key challenges of the at-risk measure. The team also shared that during the interview process, most interviewees voiced that the current at-risk measure, and other measures, may still be an undercount or under-assessment of student need.



Ms. Blagg and Ms. Gutierrez responded to questions from the committee regarding the study's survey sample size, how the survey was administered and the definition of at-risk.




The materials for this presentation have been shared with committee members and can be found, here: http://leg.colorado.gov/content/isfinance2021acommdocs  

10:00:27 AM  

Ms. Blagg continued the presentation by sharing that the study revealed that universal free lunch provides benefits such as an increase in test scores and a reduction of suspension rates. The team examined how different states use different at-risk/poverty measures for allocating funding. She also shared that proposed federal changes could make universal free lunch more accessible for districts and for Colorado.



Ms. Blagg also provided an overview of the alternative at-risk measures that will be included in the final report. Some of the alternative measures include household tax data, alternative income forms, and census poverty estimates. She discussed the benefits and challenges of each alternative at-risk measure.



Ms. Blagg responded to questions from the committee regarding income qualifications for public services such as Medicare.    

10:35:16 AM  

Ms. Blagg shared the team's suggestions for next steps which include incorporating alternative measures into the formula and how to support school districts as they provide data for a new measure. Ms. Blagg responded to questions from the committee.

10:42:05 AM  

Committee questions and discussion ensued.



Update on Cost of Living Study - Committee Discussion Only


11:01:26 AM  

Representative McClusksie provided an overview on the cost of living factor.

A memo on the cost of living factor was shared with committee members and can be found, here: http://leg.colorado.gov/content/isfinance2021acommdocs



Bill Draft Requests - Committee Discussion Only


11:03:07 AM  

Brita Darling, Julie Pelegrin, and Alana Rosen, Office of Legislative Legal Services, provided an overview on the process for requesting bill drafts.

11:04:59 AM  

Senator Coleman requested a bill to focus on redefining at-risk parameters for students. The bill will establish a new definition for at-risk. The bill will incorporate data provided from the poverty study.



The committee discussed the potential bill draft. Representative McCluskie shared that because the final results of the poverty study will not be released until the beginning of January, the committee may need more time to work on the bill. Representative McCluskie stated that the committee can review the provery study during their meeting on January 10, 2022 and vote to approve the bill a couple of weeks later during the 2022 Legislative Session.  

11:27:21 AM  

Committee discussion ensued.



11:39:33 AM
Motion Create a bill draft that would focus on redefining at-risk parameters for students.
Moved Larson
Seconded Lundeen
Baisley
Coleman
Kipp
Larson
Lundeen
Zenzinger
Kirkmeyer
McCluskie
YES: 0   NO: 0   EXC: 0   ABS:  0   FINAL ACTION:  Pass Without Objection
11:39:47 AM  

Senator Kirkmeyer requested a bill draft that would increase the state share of special education funding. The bill would require the special education funding tiers to be reviewed and updated.  

11:45:00 AM  

Committee discussion ensued.



11:52:02 AM
Motion Create a draft bill to increase the state share of special education funding.
Moved Kirkmeyer
Seconded Larson
Baisley
Coleman
Kipp
Larson
Lundeen
Zenzinger
Kirkmeyer
McCluskie
YES: 0   NO: 0   EXC: 0   ABS:  0   FINAL ACTION:  Pass Without Objection
11:52:18 AM  

Representative McCluskie proposed a draft for a bill that would create a Mill Levy Override (MLO) match fund.  



The bill would create an MLO override match fund for purposes of incentivizing lower wealth communities to pass local MLOs so school districts may benefit from additional local funding support.



Representative McCluskie responded to questions from the committee.    

11:57:00 AM  

Committee discussion and questions ensued.



12:21:23 PM
Motion Create a draft bill to create a Mill Levy Override match fund.
Moved McCluskie
Seconded Zenzinger
Baisley No
Coleman Yes
Kipp Yes
Larson No
Lundeen No
Zenzinger Yes
Kirkmeyer No
McCluskie Yes
YES: 4   NO: 4   EXC: 0   ABS:  0   FINAL ACTION:  FAIL
12:21:36 PM  

According to House Bill 21-1325, if a vote conducted in the School Finance Committee results in a tie, then the Committee Chair can break the tie with an additional vote. Because the vote for Bill 3 resulted in a tie, Representative McCluskie casted an additional vote for the bill. The bill passed on a vote of 5 to 4.

12:23:42 PM  
Rep McCluskie made
a request for a bill that would aim to improve financial outcomes for school
trust assets.The bill will address the ongoing viability/sustainability
of the Permanent Fund, modernize the distribution formula and create more
flexible investment strategies through a new asset allocation model.  


12:25:28 PM
Motion Create a bill to improve financial outcomes for school trust assets.
Moved McCluskie
Seconded Kirkmeyer
Baisley
Coleman
Kipp
Larson
Lundeen
Zenzinger
Kirkmeyer
McCluskie
YES: 0   NO: 0   EXC: 0   ABS:  0   FINAL ACTION:  Pass Without Objection


12:26:19 PM   The committee adjourned.






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