2023 Colorado Revised Statutes › Title 26.5 - EARLY CHILDHOOD PROGRAMS AND SERVICES (§§ 26.5-1-101 — 26.5-6-103) › Article 4 - CHILD CARE AND EDUCATION (§§ 26.5-4-101 — 26.5-4-403) › Part 2 - COLORADO UNIVERSAL PRESCHOOL PROGRAM (§§ 26.5-4-201 — 26.5-4-211) › Section 26.5-4-208 - Preschool provider funding - per-child rates - local contribution - distribution and use of money - definitions - repeal

(1)
(a)
The department, in accordance with the intent specified in section
26.5-4-202 (3)
, shall annually establish the per-child rates for universal preschool services, for preschool services for children with disabilities, for preschool services for eligible children who are three years of age or younger as described in section
26.5-4-204 (3)(a)(III) and (3)(a)(IV)
, and for additional preschool services. In establishing the per-child rates, the department, at a minimum, shall ensure that the per-child rate for preschool services for children with disabilities is at least equal to the greater of the per-child rate for universal preschool services or the state per pupil preschool funding rate for children with disabilities for the 2022-23 budget year, as defined in subsection (6) of this section. The department shall adopt one or more formulas for annually setting the per-child rates, which formulas must, at a minimum, take into account:
(I)
The cost of providing preschool services that meet the quality standards established in department rule pursuant to section
26.5-4-205 (2)
;
(II)
The responsibilities of the state and administrative units to meet the special education funding maintenance of effort requirements specified in IDEA;
(III)
Variations in the cost of providing preschool services that result from regional differences and circumstances, which may include difficulties in achieving economies of scale in rural areas and in recruiting and retaining preschool educators; and
(IV)
Variations in the cost of providing preschool services that result from the characteristics of children, which must include a child's identification as a child in a low-income family, and may include, but need not be limited to, a child's identification as a dual-language learner.
(b)
In establishing the formulas described in subsection (1)(a) of this section and annually setting the per-child rates, the department must consider strategies to mitigate the effect of preschool funding on the availability of child care services for infants and toddlers within communities and areas in the state.
(c)
In establishing the formula for additional preschool services, in addition to the considerations specified in subsection (1)(a) of this section, the department may consider the amount of local funding available to assist families within a community based on the community plan or available within an area that does not have a local coordinating organization. A preschool provider is prohibited from charging a fee for additional preschool services to a family that participates in the preschool program that exceeds the amount charged to families that do not receive additional preschool services.
(d)
In addition to distributing funding based on the per-child rates established pursuant to subsection (1)(a) of this section, the department may by rule distribute funding to achieve a specified purpose, which may include funding for administrative units to provide special education services through the preschool program and funding for measures related to recruiting, training, and retaining preschool educators. The department may choose to distribute funding pursuant to this subsection (1)(d) only after the department allocates the amounts necessary to fund preschool services for eligible children who are three years of age or younger, up to the amounts described in subsection (3)(c) of this section, and to fully fund universal preschool services for all eligible children who enroll.
(e)
In establishing the formulas and other distribution amounts, the department shall consult with the rules advisory council, the early childhood leadership commission, and members of the early childhood community, including parents of preschool-age children, preschool educators, preschool providers, early childhood councils, school districts, charter schools, representatives of county departments of human or social services, local coordinating organizations, and individuals with financial expertise in public and private funding sources for early childhood services.
(2)
Before finalizing the per-child rates in a fiscal year, the department shall:
(a)
(I)
Ensure that the per-child rates for universal preschool services, for preschool services for children with disabilities, and for preschool services for eligible children who are three years of age or younger as described in section
26.5-4-204 (3)(a)(III) and (3)(a)(IV)
meet or exceed the constitutional compliance rate for the applicable fiscal year, as described in subsection (2)(a)(II) of this section.
(II)
For the 2023-24 fiscal year, the constitutional compliance rate is forty percent of the statewide base per pupil funding that the general assembly establishes in section
22-54-104 (5)(a)
for the 2023-24 fiscal year. For the 2024-25 fiscal year and each fiscal year thereafter, the constitutional compliance rate is the 2023-24 fiscal year constitutional compliance rate increased annually, beginning in the 2024-25 fiscal year, by the rate of inflation.
(b)
Compare the amount of funding that the per-child rates direct toward universal preschool services with the amount of funding the rates direct toward additional preschool services and prepare an analysis of the efficacy of the balance between funding for universal preschool services and additional preschool services in optimizing support for children in low-income families and children who meet qualifying factors while ensuring high-quality universal preschool services. The department shall make the analysis available to the public.
(c)
Consider the impact on the level of funding for preschool providers as a result of the per-child rates and the levels of enrollment as compared to previous state fiscal years, including state fiscal years preceding the 2023-24 state fiscal year. The department may consider a specified purpose distribution as described in subsection (1)(d) of this section to reduce any impact on the level of funding for preschool providers.
(3)
(a)
Beginning in the 2023-24 fiscal year and for each fiscal year thereafter, the department, working with local coordinating organizations as provided in each local coordinating organization's coordinator agreement with the department, shall distribute the funding appropriated to the department for preschool services from the preschool programs cash fund and any amount received pursuant to section
26.5-4-209 (2)
. The department and local coordinating organizations, as applicable, shall base the amounts distributed on the per-child rates and any special purpose distributions established for the applicable fiscal year pursuant to subsection (1) of this section. At the start of each fiscal year, the department, and local coordinating organizations as applicable, shall distribute a portion of the funding to preschool providers based on the numbers and types of eligible children expected to enroll in preschool as estimated in the community plans or as estimated by the department for an area that does not have a local coordinating organization. The department and local coordinating organizations, as applicable, shall continue distributing portions of the funding periodically throughout the school year and shall adjust the amounts distributed based on the actual numbers and types of eligible children enrolled by preschool providers.
(b)
The department shall ensure that funding is allocated for preschool services for eligible children who are three years of age or younger, as described in subsection (3)(c) of this section, for children with disabilities, and for all eligible children who enroll in universal preschool services before funding is allocated for additional preschool services or for specified purposes as described in subsection (1)(d) of this section. In allocating funding for additional preschool services for eligible children, the department shall first allocate funding for additional preschool services for eligible children who are in low-income families and meet at least one qualifying factor and then allocate funding for additional preschool services for the remaining eligible children who are in low-income families.
(c)
(I)
(A)
In distributing funding for preschool services pursuant to this section for the 2023-24 fiscal year and each fiscal year thereafter, the department shall ensure that the amount of funding required to provide preschool services to all three-year-old children with disabilities who enroll in the preschool program is annually distributed to the enrolling preschool providers and the amount described in subsection (3)(c)(I)(B) of this section is distributed to provide preschool services for eligible children who are three years of age or younger, as described in section
26.5-4-204 (3)(a)(III) and (3)(a)(IV)
.
(B)
To provide services for eligible children who are three years of age or younger, the department shall annually distribute the amount allotted for the 2022-23 fiscal year to provide preschool services for children three years of age or younger through the "Colorado Preschool Program Act", article
28
of title
22
, as it existed prior to July 1, 2023, calculated as an amount equal to the number of children three years of age or younger enrolled by each school district for the 2022-23 fiscal year multiplied by the per pupil funding, as described in section
22-54-104 (3)
or (3.5), whichever is applicable, for the enrolling school district for the 2022-23 fiscal year.
(II)
The department and local coordinating organizations, as applicable, shall distribute the funding for preschool services for children who are three years of age or younger as described in subsection (3)(c)(I)(B) of this section only to preschool providers that are school districts or charter schools for the eligible children who are three years of age and younger whom the school district or charter school enrolls in accordance with the preschool program; except that, in a fiscal year in which the general assembly specifically appropriates an amount to provide preschool services for children three years of age or younger who do not have disabilities that exceeds the amount described in subsection (3)(c)(I)(B) of this section, the department may distribute in accordance with the applicable community plans all or any portion of the excess appropriation amount to community-based preschool providers. A school district may distribute all or a portion of the amount received pursuant to this subsection (3)(c)(II) to a head start agency or community-based preschool provider that provides preschool services pursuant to a contract with the school district.
(III)
Notwithstanding any provision of subsection (3)(c)(I) of this section to the contrary, in a fiscal year in which the amount described in subsection (3)(c)(I)(B) of this section to fund preschool services for children who are three years of age or younger is more than is required to fully fund the number of said eligible children who actually enroll for preschool services, the department may distribute the excess amount to fund universal preschool services, additional preschool services, or special purpose distributions in accordance with this section.
(IV)
In a fiscal year in which the amount described in subsection (3)(c)(I)(B) of this section to fund preschool services for children who are three years of age or younger is less than is required to fully fund the number of said eligible children who actually enroll for preschool services, the department shall first provide funding for the eligible children with disabilities and eligible children who are in low-income families and meet at least one qualifying factor and then provide funding for the remaining eligible children who are in low-income families. If any amount of the appropriation described in subsection (3)(c)(I)(B) of this section remains, the department, working with the rules advisory council, the local coordinating organizations, and any other interested persons, shall establish the priority for distributing the funding among the remaining eligible children.
(4)
(a)
Notwithstanding any provision of this section to the contrary, if the funding that a preschool provider that is a school district or a charter school receives pursuant to this section for eligible children enrolled in the preschool program for the 2023-24 fiscal year, calculated as the per-child rates for the 2023-24 fiscal year multiplied by the number of eligible children the preschool provider enrolls for the 2023-24 fiscal year, is less than the amount of funding allotted for the 2022-23 fiscal year for the children the preschool provider enrolled through the Colorado preschool program, as it existed prior to July 1, 2023, calculated as fifty percent of the preschool provider's per pupil funding, as described in section
22-54-104 (3)
or (3.5), whichever is applicable, for the 2022-23 fiscal year multiplied by the number of preschool positions the preschool provider enrolled through the Colorado preschool program and directly served for the 2022-23 fiscal year, the department shall distribute to the preschool provider for the 2023-24 fiscal year an amount equal to the difference in said amounts.
(b)
Notwithstanding any provision of this section to the contrary, if the funding that a community-based preschool provider receives pursuant to this section for eligible children enrolled in the preschool program for the 2023-24 fiscal year, calculated as the per-child rates for the 2023-24 fiscal year multiplied by the number of eligible children the preschool provider enrolls for the 2023-24 fiscal year, is less than the amount of funding the community-based preschool provider received for the 2022-23 fiscal year pursuant to a contract with a school district or charter school to indirectly serve children the school district or charter school enrolled through the Colorado preschool program, as it existed prior to July 1, 2023, for the 2022-23 fiscal year, the department shall distribute to the preschool provider for the 2023-24 fiscal year an amount equal to the difference in said amounts.
(c)
Any amount distributed pursuant to this subsection (4) is in addition to the amount calculated for the preschool provider for the 2023-24 fiscal year pursuant to this section.
(d)
The department shall collect, and preschool providers shall provide, the information required to implement this subsection (4), which may include but need not be limited to:
(I)
A school district's per pupil funding amount calculated for the 2022-23 fiscal year pursuant to section
22-54-104 (3)
or (3.5), whichever is applicable;
(II)
The number of pupils that a preschool provider enrolled through the Colorado preschool program, as it existed prior to July 1, 2023, for the 2022-23 fiscal year; and
(III)
The amounts paid by school districts and charter schools to community-based preschool providers pursuant to contracts entered into for the 2022-23 fiscal year in accordance with the Colorado preschool program, as it existed prior to July 1, 2023.
(e)
This subsection (4) is repealed, effective July 1, 2024.
(5)
A preschool provider that receives funding distributed pursuant to this section shall use the money only to pay the costs of providing preschool services directly to eligible children enrolled by the preschool provider or by a subcontracted preschool provider as authorized for a school district in subsection (3)(c)(II) of this section. Costs of providing preschool services include:
(a)
Teacher and paraprofessional salaries and benefits;
(b)
The cost of providing to teachers and paraprofessionals any professional development activities associated with the preschool services;
(c)
The costs incurred in purchasing supplies and materials used in providing the preschool services;
(d)
Any additional costs that a preschool provider would not have incurred but for the services provided in conjunction with the preschool services; and
(e)
A reasonable allocation of overhead costs as provided by department rule.
(6)
As used in this section, unless the context otherwise requires:
(a)
"District extended high school pupil enrollment" has the same meaning as provided in section
22-54-103
.
(b)
"Funded pupil count" means the funded pupil count as determined pursuant to article 54 of title 22.
(c)
"Online pupil enrollment" has the same meaning as provided in section
22-54-103
.
(d)
"State average per pupil funding amount" means the total of the per pupil funding amounts, as described in section
22-54-104 (3)
or (3.5), for all school districts in the state as calculated for the 2022-23 budget year divided by the total number of school districts, then multiplied by fifty percent.
(e)
"State per pupil preschool funding rate for children with disabilities for the 2022-23 budget year" means an amount equal to the state's share percentage of statewide total program funding for all school districts calculated pursuant to the "Public School Finance Act of 1994", article
54
of title
22
, for the 2022-23 budget year multiplied by the state average per pupil funding amount for the 2022-23 budget year.
Amended by 2024 Ch. 236,§ 62, eff. 5/23/2024.
Amended by 2023 Ch. 303,§ 61, eff. 8/7/2023.
Added by 2022 Ch. 123, §3, eff. 7/1/2022.
2023 Ch. 303, was passed without a safety clause. See Colo. Const. art. V, § 1(3).