Budget Policies and Procedures

C.R.S. tit. 22, art. 44
in effect

C.R.S. § 22-44-101 Short title

22-44-101. Short title. This part 1 shall be known and may be cited as the "School District Budget Law of 1964".

C.R.S. § 22-44-102 Definitions

22-44-102. Definitions. As used in this part 1, unless the context otherwise requires: (1) "Appropriation" means the setting aside by resolution of a specified amount of money for a fund with an authorization to make expenditures and incur obligations for the purposes thereof. (2) "Board of education" or "board" means the governing body of a school district. (3) "Contingency" means an act of God or the public enemy, or some event which could not have been reasonably foreseen at the time of the adoption of the budget of a school district. (4) (a) and (b) Repealed. (c) Effective July 1, 1992, "fiscal year" means the period beginning on July 1 of each year and ending on the following June 30. (5) "Function" means a classification within a fund in accordance with a major purpose including, but not limited to, administration, instruction, operation, or maintenance of a physical plant. (6) "Fund" means a sum of money or other resource set aside for a specific purpose of a school district. The accounts thereof constitute a complete entity, and all of the financial transactions for a particular fund shall be recorded in said fund. (7) "Object" means a classification within a function in accordance with the article or service received in return for expenditures including, but not limited to, personal services, materials, supplies, or equipment. (7.3) "Ongoing deficit" means any negative amount reported in the annual financial audit or submitted through the department's financial data-collection process by the school district, board of cooperative services, charter school, or charter school institute in the unassigned fund balance for governmental funds or unrestricted net assets for proprietary funds as identified in the standard statewide chart of accounts. (7.5) "Pupil enrollment count day" has the same meaning as set forth in section 22-54-103 (10.5). (8) "School district" or "district" means a school district or a local college district organized and existing pursuant to law.

C.R.S. § 22-44-103 Budget and appropriation - required

22-44-103. Budget and appropriation - required. (1) The board of education of each school district shall adopt a budget and an appropriation resolution for each fiscal year, prior to the beginning of the fiscal year. The board shall ensure that the district uses the full accrual basis of accounting when budgeting and accounting for any enterprise funds included in the district budget. (2) If a new school district is organized during a fiscal year and the school districts included therein do not operate the schools until the end of the school year, the board of education of the newly organized district shall adopt a budget and appropriation resolution to cover only the remaining portion of the fiscal year. Such budget shall be based on the total of the amounts budgeted and appropriated by the board of education of any former district wholly included in the new district and the pro rata amounts budgeted and appropriated by the board of education of any district only partly included therein, to the respective funds, functions, and objects in the budget of the newly organized district.

C.R.S. § 22-44-103.5 Budget for 1992 transitional fiscal year - budget years thereafter

22-44-103.5. Budget for 1992 transitional fiscal year - budget years thereafter. (1) In order to implement the change in the school district fiscal year on July 1, 1992, the six-month period beginning on January 1, 1992, and ending on June 30, 1992, shall be the 1992 transitional fiscal year. The board of education of each school district shall adopt a budget and an appropriation resolution for such transitional fiscal year in the manner provided by this part 1; except that the total amount that may be budgeted and appropriated from revenues in the general fund generated pursuant to the "Public School Finance Act of 1988", former article 53 of this title, for expenditure during such transitional fiscal year shall not exceed the equalization program funding of such district as determined pursuant to former section 22-53-107 (5), the preschool program funding as determined pursuant to former section 22-53-115.5 (1.5), if any, and the program funding for three- and four-year-old children with disabilities as determined pursuant to former section 22-53-116.5 (2), if any. (2) (a) Notwithstanding the provisions of section 39-1-112, C.R.S., revenues generated pursuant to the "Public School Finance Act of 1988" to fund the equalization program funding, the preschool program funding, and the program funding for three- and four-year-old children with disabilities of the district for the transitional fiscal year and any additional funds generated pursuant to the provisions of former section 22-53-114 (10) of said act, including property tax revenues collected during the 1992 calendar year which are in excess of the funding for such programs during such fiscal year, shall not be expended during such fiscal year but shall be carried forward in the general fund to the 1992-93 fiscal year. (b) (I) Except as otherwise provided in paragraph (c) of this subsection (2), the property tax revenue carried forward to the 1992-93 fiscal year and any property tax revenue collected during the first six months of the 1992-93 budget year shall be used to offset the state's share of the district's equalization program funding for said fiscal year. Any property tax revenue not used to offset state aid during the 1992-93 fiscal year shall not be expended in said fiscal year but shall be carried forward in the general fund to the 1993-94 fiscal year. (II) The property tax revenue carried forward to the 1993-94 fiscal year shall be used to offset the state's share of the district's equalization program funding for said fiscal year. (III) (A) Of the districts subject to the provisions of this paragraph (b), this subparagraph (III) shall only apply to those districts with property tax revenue carried forward which is not completely offset against the state's share of the district's equalization program funding in the 1992-93 and 1993-94 fiscal years. (B) The board of education of a district subject to the provisions of this subparagraph (III) shall reduce its mill levy for the 1993 property tax year so that the property tax revenue collected in 1994, assuming one hundred percent collection, equals the district's share of equalization program funding for the 1993-94 fiscal year plus any amount of categorical support funds the district is required to replace with property tax revenue during the 1993-94 fiscal year reduced by the amount of property tax revenue carried forward which was not offset against the state's share of equalization program funding for the 1992-93 and 1993-94 fiscal years. Any district that reduces its mill levy for the 1993 property tax year shall be subject to the provisions of former section 22-53-114 (9.2). required to replace with property tax revenue during the 1993-94 fiscal year reduced by the amount of property tax revenue carried forward which was not offset against the state's share of equalization program funding for the 1992-93 and 1993-94 fiscal years. Any district that reduces its mill levy for the 1993 property tax year shall be subject to the provisions of former section 22-53-114 (9.2). (C) In lieu of reducing the mill levy pursuant to the provisions of sub-subparagraph (B) of this subparagraph (III), the board of education of any district subject to the provisions of this subparagraph (III) may, by a two-thirds vote of the board, elect to keep the amount of property tax revenue carried forward which was not offset against the state's share of equalization program funding for the 1992-93 and 1993-94 fiscal years. Once such an election is made, the board of education may use its excess property tax revenue for any lawful purpose during the 1993-94 fiscal year and fiscal years thereafter. Notwithstanding the provisions of former section 22-53-114 (1) or section 22-54-106, no district which elects to keep its excess property tax revenue pursuant to the provisions of this sub-subparagraph (C) shall receive state aid or receive categorical support funds which the district would otherwise be eligible to receive from the state during the 1994-95 fiscal year and fiscal years thereafter until such time as the amount of state aid or categorical support funds the district would have received during said years equals the amount of the excess property tax revenue. (D) Notwithstanding the provisions of sub-subparagraph (C) of this subparagraph (III), for the 1995-96 fiscal year and fiscal years thereafter, the amount of property tax revenue carried forward shall be offset against any state aid or categorical support funds that the district would otherwise be eligible to receive from the state during the 1995-96 fiscal year and fiscal years thereafter. After the offset is made in each fiscal year, the board of education may use its excess property tax revenue for any capital projects and may use no more than ten percent of the excess property tax revenue remaining to be offset at the end of the fiscal year for any lawful purpose. The amount of excess property tax revenue remaining to be offset shall be reduced each year by ten percent and the amount of any capital projects on which the money is spent. By January 30 of each fiscal year, the board of education shall certify to the state department of education the total amount of excess property tax revenue spent or otherwise encumbered on capital projects for the fiscal year. Once the amount of excess property tax revenue remaining to be offset reaches zero, the district shall receive state aid or receive categorical support funds that the district would otherwise be eligible to receive from the state. shall certify to the state department of education the total amount of excess property tax revenue spent or otherwise encumbered on capital projects for the fiscal year. Once the amount of excess property tax revenue remaining to be offset reaches zero, the district shall receive state aid or receive categorical support funds that the district would otherwise be eligible to receive from the state. (c) (I) The provisions of this paragraph (c) shall only apply to districts that were eligible to receive only minimum state aid under former section 22-53-114 (1) of the "Public School Finance Act of 1988". (II) The board of education of a district subject to the provisions of this paragraph (c) shall reduce its mill levy for the 1992 property tax year so that the property tax revenue collected in 1993, assuming one hundred percent collection, equals the district's share of equalization program funding for the 1992-93 fiscal year plus any amount of categorical support funds the district is required to replace with property tax revenue during the 1992-93 fiscal year reduced by the amount of excess property tax revenue collected during the 1992 calendar year. (III) In lieu of reducing the mill levy pursuant to the provisions of subparagraph (II) of this paragraph (c), the board of education of any district subject to the provisions of this paragraph (c) may, by a two-thirds vote of the board, elect to keep its excess property tax revenue. Once such an election is made, the board of education may then use its excess property tax revenue for any lawful purpose during the 1992-93 fiscal year and fiscal years thereafter. Notwithstanding the provisions of former section 22-53-114 (1) or section 22-54-106, no district which elects to keep its excess property tax revenue pursuant to the provisions of this subparagraph (III) shall receive state aid during the 1992-93 fiscal year and fiscal years thereafter or receive categorical support funds which the district would otherwise be eligible to receive from the state for the 1993-94 fiscal year and fiscal years thereafter, until such time as the amount of state aid or categorical support funds the district would have received during said years equals the amount of the excess property tax revenue. (IV) Notwithstanding the provisions of subparagraph (III) of this paragraph (c), for the 1995-96 fiscal year and fiscal years thereafter, the amount of property tax revenue carried forward shall be offset against any state aid or categorical support funds that the district would otherwise be eligible to receive from the state during the 1995-96 fiscal year and fiscal years thereafter. After the offset is made in each fiscal year, the board of education may use its excess property tax revenue for any capital projects and may use no more than ten percent of the excess property tax revenue remaining to be offset at the end of the fiscal year for any lawful purpose. The amount of excess property tax revenue remaining to be offset shall be reduced each year by ten percent and the amount of any capital projects on which the money is spent. By January 30 of each fiscal year, the board of education shall certify to the state department of education the total amount of excess property tax revenue spent or otherwise encumbered on capital projects for the fiscal year. Once the amount of excess property tax revenue remaining to be offset reaches zero, the district shall receive state aid or receive categorical support funds that the district would otherwise be eligible to receive from the state.

C.R.S. § 22-44-103.7 Budget provisions for the 2021-22 budget year - repeal

22-44-103.7. Budget provisions for the 2021-22 budget year - repeal. (Repealed)

C.R.S. § 22-44-104 Failure to adopt budget or appropriation

22-44-104. Failure to adopt budget or appropriation. If a board of education fails or neglects to adopt a budget or an appropriation resolution prior to the beginning of the ensuing fiscal year as required by section 22-44-103, then ninety percent of the amounts budgeted and appropriated to the funds, functions, and objects by the last duly adopted budget and appropriation resolution shall be deemed to be budgeted and appropriated by operation of law for the fiscal year for which no budget or appropriation resolution was adopted prior thereto; but an amount of money sufficient to satisfy all obligations of bonded indebtedness which will be due and payable during said fiscal year shall be deemed to be budgeted and appropriated by operation of law.

C.R.S. § 22-44-105 Budget - contents - mandatory

22-44-105. Budget - contents - mandatory. (1) The budget shall be presented in the standard budget report format established by the state board of education by rule pursuant to subsection (5) of this section. The standard budget report format established by the state board shall be substantially consistent from year to year and shall adhere to the following guidelines: (a) The budget shall be presented in a summary format which is understandable by any layperson reviewing such budget. (a.5) (Deleted by amendment, L. 93, p. 1873, § 1, effective June 6, 1993.) (b) The budget shall be presented in a summary format which will allow for comparisons of revenues and expenditures among school districts by pupil. (c) The budget shall be presented in a format that itemizes expenditures of the district by fund and by pupil. The budget shall: (I) Describe the expenditure; (II) Show the amount budgeted for the current fiscal year; (III) Show the amount estimated to be expended for the current fiscal year; and (IV) Show the amount budgeted for the ensuing fiscal year. (V) Repealed. (c.4) Upon review of the letter of intent submitted to the state treasurer and the department of education, the department of education will notify the board of education of the acceptance, if appropriate, of the use of real property for the establishment of a district emergency reserve pursuant to paragraph (c.5) of this subsection (1). (c.5) The budget shall ensure that the school district holds unrestricted general fund or cash fund emergency reserves in the amount required under the provisions of section 20 (5) of article X of the state constitution; except that, if a board of education provides for a district emergency reserve in the general fund for the budget year, established at an amount equal to at least three percent of the amount budgeted to the general fund, the board may: (I) Designate real property owned by the district as all or a portion of the reserve required by section 20 (5) of article X of the state constitution so long as the board has filed with the state treasurer and the department of education a letter of intent that expresses the intent of the board to increase the liquidity of such property upon the occurrence of a declared emergency within the meaning of section 20 (5) of article X of the state constitution by entering into one or more financed purchase of an asset or certificate of participation agreements with respect to such property or by other means acceptable to the state treasurer; or (II) Secure a letter of credit from an investment-grade bank as all or a portion of the reserve required by section 20 (5) of article X of the state constitution so long as the board has filed with the state treasurer and the department of education a letter of intent that expresses the intent of the board to satisfy its obligation to reimburse the bank for money drawn on the letter of credit upon the occurrence of a declared emergency within the meaning of section 20 (5) of article X of the state constitution that are not reimbursed to the bank within the same fiscal year by entering into financed purchase of an asset or certificate of participation agreements with respect to real property owned by the district. (c.6) If at any time the board of education expends any moneys from the district emergency reserve created pursuant to paragraph (c.5) of this subsection (1), the board shall restore the reserve to three percent of the amount budgeted to the general fund as follows: (I) If the board of education expends moneys from the district emergency reserve in a single fiscal year, the board shall restore the reserve pursuant to this paragraph (c.6) within thirty-six months of the first draw of the money from the reserve; and aragraph (c.5) of this subsection (1), the board shall restore the reserve to three percent of the amount budgeted to the general fund as follows: (I) If the board of education expends moneys from the district emergency reserve in a single fiscal year, the board shall restore the reserve pursuant to this paragraph (c.6) within thirty-six months of the first draw of the money from the reserve; and (II) If the board of education expends moneys from the district emergency reserve in two consecutive fiscal years, the board shall restore the reserve pursuant to this paragraph (c.6) by the end of the fiscal year following the second fiscal year in which the board expended moneys from the reserve. (c.7) The budget shall summarize revenues by revenue source and shall summarize expenditures by function, fund, and object. (d) (Deleted by amendment, L. 97, p. 948, § 3, effective August 6, 1997.) (d.5) The budget shall include a uniform summary sheet for each fund administered by the district that details the following for each fund: (I) The beginning fund balance and the anticipated ending fund balance for the budget year; (II) The anticipated fund revenues for the budget year, delineated by the program and source codes identified in the chart of accounts created pursuant to subsection (4) of this section; (III) The anticipated transfers and allocations that will occur to and from the fund during the budget year; (IV) The anticipated expenditures that will be made from the fund during the budget year, delineated by the program and object codes identified in the chart of accounts created pursuant to subsection (4) of this section; and (V) The amount of reserves in the fund. (e) (I) For the 1993-94 fiscal year, the budget format shall contain a provision under which any district which has a reduction in its 1993-94 per pupil funding, as defined in former section 22-53-107.3 (3)(a), of four and seven-tenths percent or more may declare an extreme emergency and may apply for additional funding from the contingency reserve pursuant to former section 22-53-124 (4). Such additional funding shall not result in a percentage reduction for an individual district which is less than the greater of four and five-tenths percent or four percent plus the percentage change in the district's per pupil funding from the 1992-93 budget year to the 1993-94 budget year which results from the application of former section 22-53-107 (5.5)(b)(II) or (5.5)(b)(III). (II) If a district which declares an extreme emergency pursuant to subparagraph (I) of this paragraph (e) has property tax revenue carried forward under the provisions of section 22-44-103.5, such district shall not be eligible to receive additional funding from the contingency reserve. However, the district may expend such property tax revenue in the 1993-94 budget year in response to such extreme emergency and, if the district advises the state board of education of such expenditure, the amount expended, not to exceed the amount of additional funding allowed the district pursuant to subparagraph (I) of this paragraph (e), shall be subtracted from the amount of excess property tax revenue of the district which must be offset against state aid and categorical support funds pursuant to section 22-44-103.5 (2)(b)(III)(B) and (2)(c)(III). ate board of education of such expenditure, the amount expended, not to exceed the amount of additional funding allowed the district pursuant to subparagraph (I) of this paragraph (e), shall be subtracted from the amount of excess property tax revenue of the district which must be offset against state aid and categorical support funds pursuant to section 22-44-103.5 (2)(b)(III)(B) and (2)(c)(III). (III) For purposes of determining the percentage change in the district's per pupil funding from the 1992-93 budget year to the 1993-94 budget year, the district's per pupil funding for the 1992-93 budget year shall be the amount derived by dividing the district's 1992-93 equalization program funding, as calculated pursuant to former section 22-53-107 (3), including the district's 1992-93 preschool program funding, if any, as calculated pursuant to former section 22-53-115.5, and the district's 1992-93 program funding for three- and four-year-old children with disabilities, if any, as calculated pursuant to former section 22-53-116.5, by the district's 1992-93 funded pupil count as defined in former section 22-53-107 (5.5)(c)(II). The district's per pupil funding for the 1993-94 budget year shall be the amount derived by dividing the district's 1993-94 equalization program funding, as calculated pursuant to former section 22-53-107 (5.5)(b)(II) or (5.5)(b)(III), whichever is applicable, by the district's 1993-94 funded pupil count as defined in former section 22-53-107 (5.5)(c)(III). (1.5) (a) A budget adopted pursuant to this article shall not provide for expenditures, interfund transfers, or reserves, in excess of available revenues and beginning fund balances. If the budget includes the use of a beginning fund balance, the school district board of education shall adopt a resolution specifically authorizing the use of a portion of the beginning fund balance in the school district's budget. The resolution, at a minimum, shall specify the amount of the beginning fund balance to be spent under the school district budget, state the purpose for which the expenditure is needed, and state the school district's plan to ensure that the use of the beginning fund balance will not lead to an ongoing deficit. (b) Each school district shall annually prepare an itemized reconciliation between the fiscal year end fund balances based on the budgetary basis of accounting used by the school district and the fiscal year end fund balances based on the modified accrual basis of accounting. The reconciliation shall include, but need not be limited to, the liability for accrued salaries and related benefits. The reconciliation shall be included with the final version of the amended budget and the annual audited financial statements. (c) If at any time during the fiscal year following the adoption of a budget by a board of education the school district determines that the use of an additional portion of the school district's beginning fund balance is necessary, the board of education shall adopt a resolution that meets at least the minimum requirements specified in paragraph (a) of this subsection (1.5) before using the additional portion of the beginning fund balance. (2) The proposed expenditures and anticipated revenues in the budget shall be supported as needed by explanatory schedules or statements of sufficient detail to judge the validity thereof, including a statement which summarizes the aggregate of revenues, appropriations, assets, and liabilities of each fund in balanced relations. The budget shall disclose planned compliance with section 20 of article X of the state constitution. (3) (Deleted by amendment, L. 93, p. 1873, § 1, effective June 6, 1993.) anatory schedules or statements of sufficient detail to judge the validity thereof, including a statement which summarizes the aggregate of revenues, appropriations, assets, and liabilities of each fund in balanced relations. The budget shall disclose planned compliance with section 20 of article X of the state constitution. (3) (Deleted by amendment, L. 93, p. 1873, § 1, effective June 6, 1993.) (4) (a) The state board of education, with input from the financial policies and procedures advisory committee, shall establish, implement, and maintain a statewide financial, student management, and human resource electronic data communications and reporting system that is based on a standard chart of accounts, a standard information system, and a standard personnel classification system. The department of education, the state charter school institute, and all district charter schools, institute charter schools, school districts, and boards of cooperative services in the state shall use the system to report and obtain necessary financial information. (b) In implementing and maintaining the financial and human resource reporting system pursuant to paragraph (a) of this section, the state board of education shall adhere to, but is not limited to, the following guidelines: (I) The reporting system must be based on a standard chart of accounts that makes school-to-school and school district-to-school district comparisons accurate and meaningful; (II) The reporting system must provide standard definitions for employment positions such that full, accurate disclosure of administrative costs is made within the budgets and the financial statements of every school district; and (III) The reporting system must make it possible to collect comparable data by program and school site. (c) Nothing in this section shall be interpreted to require accounting of salary and benefit costs by school site. (d) The financial policies and procedures advisory committee shall consider and make a recommendation to the state board of education concerning whether the standard chart of accounts should include the reporting of revenues received at all levels, including public revenues received from private gifts, grants, and donations, and, if so, how the reporting of revenues would be included in the standard chart of accounts. (e) (I) The department shall issue a request for proposals and contract for the creation of a website view that, at a minimum, translates the expenditures for each of the major categories specified in the chart of accounts for school sites, school districts, the state charter school institute, and boards of cooperative services, as posted on the website maintained by each local education provider pursuant to section 22-44-304, into a format that is readable by a layperson. The department and the entity with which the department contracts, if any, shall work with the financial policies and procedures advisory committee and a representative from the office of state planning and budgeting in designing the presentation of data on the website view to ensure the greatest degree of clarity and comparability by laypersons of expenditures among school sites, school districts, the state charter school institute, and boards of cooperative services. (II) The department shall ensure that the website created pursuant to this paragraph (e) is available to the public no later than July 1, 2017, and is updated annually. (5) No later than July 1, 2008, the state board of education, with input and recommendations from the financial policies and procedures advisory committee created in the department of education, shall establish by rule the standard budget report format to be used by each board of education. suant to this paragraph (e) is available to the public no later than July 1, 2017, and is updated annually. (5) No later than July 1, 2008, the state board of education, with input and recommendations from the financial policies and procedures advisory committee created in the department of education, shall establish by rule the standard budget report format to be used by each board of education. (6) (a) There is created in the state treasury the financial reporting fund, referred to in this subsection (6) as the "fund". For the 2014-15 budget year, the state treasurer shall transfer three million dollars from the state education fund, created in section 17 (4) of article IX of the state constitution, to the fund to offset the costs incurred by the department in implementing paragraph (e) of subsection (4) of this section. The moneys in the fund are continuously appropriated to the department of education beginning in the 2014-15 budget year and continuing through the 2017-18 budget year, after which time any moneys remaining in the fund are subject to annual appropriation. (b) The state treasurer may invest any moneys in the fund not expended for the purpose of paragraph (e) of subsection (4) of this section as provided by law. The state treasurer shall credit all interest and income derived from the investment and deposit of moneys in the fund to the fund. Any unexpended and unencumbered moneys remaining in the fund at the end of a fiscal year remain in the fund and shall not be credited or transferred to the general fund or another fund. (c) The general assembly hereby declares that, for purposes of section 17 of article IX of the state constitution, creating and maintaining the website described in paragraph (e) of subsection (4) of this section is an important element in implementing accountability reporting and may therefore receive funding from the state education fund created in section 17 (4) of article IX of the state constitution.

C.R.S. § 22-44-106 Contingency reserve - operating reserve

22-44-106. Contingency reserve - operating reserve. (1) Repealed. (2) A board of education may provide for an operating reserve in the general fund, which reserve shall not exceed fifteen percent of the amount budgeted to the general fund for the current fiscal year. Such operating reserve shall not be appropriated nor shall any moneys therein be expended during the fiscal year covered by the budget, but such moneys shall be a continuing reserve and be considered as a beginning general fund balance for the next following fiscal year.

C.R.S. § 22-44-107 Appropriation resolution - required

22-44-107. Appropriation resolution - required. (1) The board of education of each school district shall adopt an appropriation resolution at the time it adopts the budget. The appropriation resolution shall specify the amount of money appropriated to each fund; except that the operating reserve authorized by section 22-44-106 (2) shall not be subject to appropriation for the fiscal year covered by the budget and except that the appropriation resolution may by reference incorporate the budget as adopted by a board of education for the current fiscal year. (2) The amounts appropriated to a fund shall not exceed the amount thereof as specified in the adopted budget.

C.R.S. § 22-44-108 Preparation of budget

22-44-108. Preparation of budget. (1) (a) The board of education shall each year cause to be prepared a proposed budget for the ensuing fiscal year. A statement shall be submitted with the proposed budget describing the major objectives of the educational program to be undertaken by the school district during the ensuing fiscal year and the manner in which the budget proposes to fulfill such objectives. (b) Repealed. (c) The proposed budget shall be submitted to the board at least thirty days prior to the beginning of the next fiscal year. (2) Upon receipt of the proposed budget and statement, the board of education may change the proposed budget and statement prior to the publication of the notice of budget required by section 22-44-109.

C.R.S. § 22-44-109 Notice of budget - publication

22-44-109. Notice of budget - publication. (1) Within ten days after submission of the proposed budget, the board of education shall cause to be published a notice stating that the proposed budget is on file at the principal administrative offices of the school district; that the proposed budget is available for inspection during reasonable business hours; that any person paying school taxes in the district may file or register an objection thereto at any time prior to its adoption; and that the board of education of the school district will consider adoption of the proposed budget for the ensuing fiscal year on the date, time, and place specified in the notice. (2) Such notice shall be in substantially the following form: NOTICE OF PROPOSED SCHOOL BUDGET Notice is hereby given that a proposed budget has been submitted to the Board of Education of ........................................ (Name of school district) for the fiscal year beginning ........... and has been filed in the office of ........... where it is available for public inspection. Such proposed budget will be considered for adoption at a ........................................ (Regular or Special) meeting of the Board of Education of said District at ........... (Place) on .......... (Date) at ...... (Time). Any person paying school taxes in said district may at any time prior to the final adoption of the budget file or register his objections thereto. BOARD OF EDUCATION Dated........ .............................................. (Name of school district) .............................................. (Secretary) (3) Such notice shall be published at least once prior to the date specified for consideration of the budget in a newspaper having general circulation in the school district. If there is no newspaper having general circulation in the district, the secretary of the board of education shall cause the notice to be posted for at least fifteen days in the administrative offices of the district and in two other public places in the district.

C.R.S. § 22-44-110 Budget - consideration - adoption

22-44-110. Budget - consideration - adoption. (1) Any person paying school taxes in the school district is entitled to attend the meeting of the board of education at which the proposed budget for the district will be considered. At such meeting, the board shall review the functions and objects of the proposed budget. Any taxpayer or his representative is entitled to file or register objections to the proposed budget prior to its final adoption. (2) It is not necessary for a board of education to formally adopt the budget on the date specified in the notice of consideration of the proposed budget, but if the budget is to be adopted at a future meeting, the date, time, and place of such meeting shall be entered in the minutes of the meeting of the board held for consideration of the proposed budget as specified in such notice. (3) After the board of education has considered the objections of taxpayers, it may change the proposed budget in any manner deemed advisable. If a board increases the total expenditures, it shall provide also for increased revenues at least equal to or greater than the proposed increased expenditures. (4) Prior to the beginning of the ensuing fiscal year, the board of education shall formally adopt the budget by appropriate resolution duly recorded. The words "Adopted Budget", the name of the school district, the date of adoption, and the signature of the president of the board shall be entered upon the adopted budget. (5) After the adoption of the budget, the board may review and change the budget, with respect to both revenues and expenditures, at any time prior to January 31 of the fiscal year for which the budget was adopted. After January 31, the board shall not review or change the budget except as authorized by this article; except that, where money for a specific purpose from other than ad valorem taxes subsequently becomes available to meet a contingency, the board may adopt a supplemental budget for expenditures not to exceed the amount of said money and may appropriate said money therefrom. (6) Effective July 1, 1992, if a school district is authorized to raise and expend additional local property tax revenues at an election held in November of any fiscal year pursuant to former section 22-53-117 or section 22-54-108 or 22-54-108.5, the board of education may adopt a supplemental budget and supplemental appropriation resolution to cover that portion of the fiscal year following such election. Such supplemental budget shall be based on the additional dollar amount authorized to be raised and expended at such election.

C.R.S. § 22-44-111 Budget - filing

22-44-111. Budget - filing. (1) The board of education shall cause the adopted budget and the appropriation resolution to be placed on file at the principal administrative office of the school district, where they shall remain throughout the fiscal year and be open for inspection during reasonable business hours. (2) and (3) Repealed.

C.R.S. § 22-44-112 Transfer of moneys

22-44-112. Transfer of moneys. (1) A board of education shall not transfer moneys from one fund to another, except as authorized and in the manner prescribed by this part 1. (2) (a) A board of education may transfer by resolution any unencumbered moneys from one fund to another, except the transportation fund, the special building and technology fund, or the bond redemption fund. (b) Repealed. (3) (a) and (b) Repealed. (c) If the resolution authorizes expenditures in excess of the amount budgeted and appropriated to a particular function, and there is no unencumbered appropriation available in another function to transfer to the function wherein additional expenditures are needed, the board of education may issue warrants to be registered, in order to provide for such excess expenditures. The total amount of warrants which may be issued and registered pursuant to this paragraph (c) during any one fiscal year shall not exceed an amount equal to that which could be raised by a two mill levy for the calendar year in which the second half of such fiscal year is included on the valuation for assessment of the taxable property located within the territorial limits of the school district. Transfers and excess expenditures pursuant to this paragraph (c) shall be deemed to be budgeted and appropriated for the purpose specified in the resolution upon the effective date of the resolution. (4) Proceeds from the sale of bonds remaining after the completion of the project for which such bonds were authorized may be transferred to the bond redemption fund or, in the event all bonds have been redeemed, to the general fund. Moneys remaining in the bond redemption fund after all obligations of bonded indebtedness have been satisfied shall be transferred to the general fund. Any moneys remaining in a particular account in the bond redemption fund, after all obligations of bonded indebtedness of that particular account have been satisfied, shall be transferred to another account within said bond redemption fund which still has outstanding obligations of bonded indebtedness. (5) Repealed. (6) Notwithstanding the provisions of this section, a local district college board of trustees may transfer moneys from the student activity fund and the food-service fund, or moneys from any other auxiliary enterprise fund, to the general obligation or revenue bond fund.

C.R.S. § 22-44-113 Borrowing from funds

22-44-113. Borrowing from funds. (1) A board of education may borrow unencumbered moneys from any one fund, except the bond redemption fund, for the use of another fund at any time. All moneys borrowed from a fund pursuant to this subsection (1) shall be repaid to said fund when needed to meet the obligations of said fund, and all revenues credited to the borrowing fund shall be used first to repay the loan. Any such loan shall be repaid not later than three months after the beginning of the following budget year. In the event moneys are not forthcoming from designated sources, an amount equal to the outstanding liability shall be expended from the general fund and used to repay the loan. Such amount from the general fund shall be recorded as revenue in the receiving fund. (2) Borrowing moneys from a fund pursuant to subsection (1) of this section shall be evidenced by a resolution duly adopted by the board of education authorizing such borrowing and shall be recorded in the minutes of the meeting of the board at which adopted. A copy of said resolution shall be filed with the employee or officer who issues checks, warrants, or orders on said school district. (3) The provisions of this section shall apply to all funds created by law or regulation or by action of a school district.

C.R.S. § 22-44-114 Record of expenditures

22-44-114. Record of expenditures. Each board of education shall maintain a complete set of books of account as required by law.

C.R.S. § 22-44-115 No obligation in excess of appropriation

22-44-115. No obligation in excess of appropriation. (1) A board of education of a school district shall not expend any moneys in excess of the amount appropriated by resolution for a particular fund. (2) Repealed. (3) Except as provided otherwise by this section, any obligation of a contract, verbal or written, which requires expenditures contrary to the provisions of subsection (1) of this section shall be void, and no school district moneys shall be paid thereon. (4) Notwithstanding any provisions of this section to the contrary, the board of education of a school district may enter into a contract for administrative services with a term not to exceed five years, for capital outlay purposes in accordance with articles 32, 42, 43, and 45 of this title, or for the purchase of real property by local college districts in accordance with section 23-71-122 (1)(c), C.R.S. Such a contract shall be valid and enforceable between parties to the contract. The provisions of this subsection (4) shall be subject to annual appropriation by the general assembly, the board of education, or the governing board.

C.R.S. § 22-44-115.5 Fiscal emergency - effect on budget

22-44-115.5. Fiscal emergency - effect on budget. (1) During any budget year, if the board of education of the school district determines that the anticipated revenues specified in the budget and the amounts appropriated in the budget for expenditure exceed the actual revenues available to the school district due, in whole or in part, to action by the general assembly or the governor relating to the state appropriation for the district's total program pursuant to article 54 of this title, the board may declare a fiscal emergency in such budget year. A declaration of fiscal emergency may only occur upon an affirmative vote of two-thirds of the members of the board at a public meeting. Prior to any vote taken pursuant to this subsection (1), the board of education shall hold at least one public hearing within the district after full and timely notice to the public. (2) If a fiscal emergency is declared by the board of education pursuant to subsection (1) of this section, the board may implement a reduction in salaries for all employees of the school district on a proportional basis or may alter the work year of such employees. Such reduction in salaries may be made notwithstanding the provisions of section 22-63-401 (3).

C.R.S. § 22-44-116 Malfeasance - removal

22-44-116. Malfeasance - removal. Any school director, officer, or employee of a school district who knowingly and willfully violates any provision of this part 1 or fails to perform any duty required by this part 1 is guilty of malfeasance in office or position of employment and, upon conviction thereof, the court shall order that such school director, officer, or employee be removed from his office or position of employment.

C.R.S. § 22-44-118 Full-day kindergarten reserve - tracking of expenditures - preschool programs - rules

22-44-118. Full-day kindergarten reserve - tracking of expenditures - preschool programs - rules. (Repealed)

C.R.S. § 22-44-119 Fiscal emergency restricted reserve

22-44-119. Fiscal emergency restricted reserve. For the 2009-10 budget year, each school district and the state charter school institute shall budget a total dollar amount determined by the department of education to a fiscal emergency restricted reserve in the general fund. The amount budgeted by each school 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 the restricted reserve as specified in section 22-54-106.5 (3), or any portion thereof, has not been enacted and become law by said date.

C.R.S. § 22-44-201 Short title

22-44-201. Short title. This part 2 shall be known and may be cited as the "Financial Policies and Procedures Act".

C.R.S. § 22-44-202 Legislative declaration

22-44-202. Legislative declaration. It is the purpose of this part 2 to develop for the public schools a program-oriented budget format which will relate anticipated costs and actual costs to designated programs.

C.R.S. § 22-44-203 Adoption and compatibility of handbook

22-44-203. Adoption and compatibility of handbook. (1) The state board of education shall have the authority to adopt a financial policies and procedures handbook that will meet the needs of the existing statutes and of such other rules and regulations as may be necessary to fulfill the intent of this part 2. (2) Repealed.

C.R.S. § 22-44-204 Use of handbook by school districts

22-44-204. Use of handbook by school districts. (1) and (2) Repealed. (3) The financial policies and procedures handbook adopted by the state board of education shall be used by every school district in this state in the development of the budget for the district, in the keeping of financial records of the district, and in the periodic presentation of financial information to the board of education of the district.

C.R.S. § 22-44-206 Administration

22-44-206. Administration. This part 2 shall be administered by the state board of education. The state board of education has the authority to adopt reasonable rules and regulations for the administration of this part 2.

C.R.S. § 22-44-301 Short title

22-44-301. Short title. This part 3 shall be known and may be cited as the "Public School Financial Transparency Act".

C.R.S. § 22-44-302 Legislative declaration

22-44-302. Legislative declaration. The general assembly finds that members of the public, as taxpayers and parents, have a strong interest in how public moneys are expended in Colorado in the pursuit of a quality education for all of Colorado's public school students. The general assembly further finds that educators and administrators, as education innovators and stewards of these public moneys, are eager to learn from one another and evaluate best practices that may result in efficiencies and potential cost savings for their schools. While achieving these important ends through the statewide dissemination of public school financial information may have been cumbersome in the past, new technologies and the ease with which the public can access electronic information now make greater transparency in public school finances not only important but practical. Therefore, it is the intent of the general assembly to ensure public access to public school financial information through the adoption of the "Public School Financial Transparency Act", which directs public schools to post financial information online, in a downloadable format, for free public access.

C.R.S. § 22-44-303 Definitions

22-44-303. Definitions. As used in this part 3, unless the context otherwise requires: (1) "Board of cooperative services" or "BOCES" means a board of cooperative services created pursuant to article 5 of this title 22. (2) "Charter school" means a district charter school authorized pursuant to part 1 of article 30.5 of this title 22 or an institute charter school authorized pursuant to part 5 of article 30.5 of this title 22. (3) "Department" means the department of education created and operating pursuant to section 24-1-115. (4) "Institute" means the state charter school institute established pursuant to section 22-30.5-503. (5) "School district" means a school district, other than a local college district, organized and existing as provided by law.

C.R.S. § 22-44-304 Financial reporting - online access to information

22-44-304. Financial reporting - online access to information. (1) (a) Commencing July 1, 2010, and on a continuing basis thereafter, the institute and each school district, board of cooperative services, and charter school shall post the following information online, in a downloadable format, for free public access: (I) The institute's, school district's, BOCES's, or charter school's annual budget, adopted pursuant to section 22-44-110 (4), commencing with the budget for the 2009-10 budget year; (II) The institute's, school district's, BOCES's, or charter school's annual audited financial statements, prepared pursuant to section 22-32-109 (1)(k), commencing with the audits prepared for the 2009-10 budget year; (III) Repealed. (IV) The institute's, school district's, BOCES's, or charter school's salary schedules or policies, adopted pursuant to sections 22-32-109.4 and 22-63-401, commencing with those applicable to the 2010-11 budget year. (b) and (c) Repealed. (d) (I) Additionally, commencing July 1, 2015, the institute and each school district, board of cooperative services, and charter school shall post in a format that can be downloaded and sorted, for free public access, the institute's, school district's, BOCES's, or charter school's actual expenditures, including but not limited to actual salary expenditures and actual benefit expenditures reported by job category specified in the standard chart of accounts, at the institute, school district, and BOCES level and at the school-site level. (II) Notwithstanding any provision of subsection (1)(d)(I) of this section to the contrary, a school district that the department determines is rural, based on the geographic size of the school district and the distance of the school district from the nearest large, urbanized area, and that enrolls fewer than one thousand students in kindergarten through twelfth grade is not required to report expenditures at the school-site level except for those school-site level expenditures that the school district charges any portion of to a district charter school. (e) Additionally, commencing July 1, 2018, the institute and each school district, board of cooperative services, and charter school shall post on its website for free public access an easily accessible link to the federal form 990, 990-EZ, or 990-PF and any associated schedules that the institute, school district, board of cooperative services, or charter school files, if any. (f) Additionally, commencing July 1, 2018, and on a continuing basis thereafter, each school district, if required in section 22-32-108.5, shall: (I) Post a copy of the school district's plan for distributing the additional mill levy revenue collected by the school district; or (II) For the 2018-19 budget year, post a statement of intent to distribute the additional mill levy revenue to the charter schools and innovation schools of the school district on a per-pupil basis and, for the 2019-20 budget year and for each budget year thereafter, a statement of the total amount of additional mill levy revenue collected by the school district for each property tax year, the amount distributed to support specific student populations as described in section 22-32-108.5 (5)(b), and the total amount distributed for said student populations and on a per-pupil basis to each charter school and innovation school of the school district, as a percentage and as a dollar amount. (2) This section does not direct or require the institute or a school district, board of cooperative services, or charter school to post online, pursuant to subsection (1) of this section, personal information relating to payroll, including but not limited to payroll deductions or contributions, or any other information that is confidential or otherwise protected from public disclosure pursuant to state or federal law. not direct or require the institute or a school district, board of cooperative services, or charter school to post online, pursuant to subsection (1) of this section, personal information relating to payroll, including but not limited to payroll deductions or contributions, or any other information that is confidential or otherwise protected from public disclosure pursuant to state or federal law. (3) (a) The institute and each school district, board of cooperative services, and charter school shall update the information specified in subsections (1)(a) to (1)(c) and subsection (1)(e) of this section within sixty days after the institute's, school district's, BOCES's, or charter school's completion or receipt of the applicable report, statement, or document. The institute and each school district, BOCES, and charter school shall update the information specified in subsection (1)(d) of this section annually by a date specified by the financial policies and procedures advisory committee. Each school district shall update the information specified in subsection (1)(f) of this section within thirty days after the school district board of education adopts a new or updated plan for distribution of additional mill levy revenue or, if the school district distributes the additional mill levy revenue on a per-pupil basis to the charter schools and innovation schools of the school district, within thirty days after the end of each budget year. (b) The institute and each school district, BOCES, and charter school shall maintain the prior two budget years' financial information online, in a downloadable format, for free public access, until the end of the institute's, school district's, BOCES's, or charter school's current budget year. (4) No later than July 1, 2015, the financial policies and procedures advisory committee of the department shall create a template that the institute and school districts, BOCES, and charter schools must use to post all of the information specified in subsection (1) of this section, including but not limited to the site-level reporting requirements. The template may include both the type of electronic file posted as well as the information to be included in the posting. (5) In addition to the information required in subsection (1) of this section, the institute and each school district, BOCES, and charter school shall provide a link to the department's website or the location information for the department's website where a member of the public may access information or reports that are submitted directly to the department.

C.R.S. § 22-44-305 Waivers of state statute - reporting

22-44-305. Waivers of state statute - reporting. (1) (a) Commencing July 1, 2017, and on a continuing basis thereafter, each school district and charter school shall post, in a location and format that can be easily accessed and downloaded, for free public access on its website maintained pursuant to this part 3 a list of the statutes for which the school district or charter school has received a waiver from the state board of education and, for each waiver that is not an automatic waiver, a copy of the plan that explains the manner in which the school district or charter school will meet the intent of the waived statute. (b) Commencing July 1, 2018, each charter school shall post, in a location and format that can be easily accessed and downloaded, for free public access on its website the standardized description and rationale created pursuant to subsection (2) of this section for each of the automatic waivers that it invokes. Each charter school shall post with the list of automatic waivers the name of and contact information for a person employed by the charter school and available during regular school hours who can provide additional information concerning the charter school's automatic waivers. (c) In listing its waivers, a school district shall include waivers granted to the school district as a whole and waivers granted to one or more schools of the school district, other than a charter school. The school district shall list separately each waiver granted to an innovation school or to schools in an innovation school zone, as defined in section 22-32.5-103. (2) By July 1, 2018, the department and the institute, working with a statewide association that represents charter schools, shall develop a standardized description for each statute that the state board of education includes in the list of automatic waivers for charter schools pursuant to section 22-30.5-104 (6) and the rationale for including the statute on the list of automatic waivers. (3) Each school district and charter school shall update the information provided pursuant to subsection (1) of this section within thirty days after a waiver is revoked or a new waiver is granted.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-22.docxFetched: 10/6/2026

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