2023 Colorado Revised Statutes › Title 22 - EDUCATION (§§ 22-1-101 — 22-108-109) › FINANCIAL POLICIES AND PROCEDURES (§§ 22-40-101 — 22-45-113) › Article 44 - Budget Policies and Procedures (§§ 22-44-101 — 22-44-305) › Part 1 - SCHOOL DISTRICT BUDGET LAW (§§ 22-44-101 — 22-44-119) › Section 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Repealed.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
(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)
.
(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.)
(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.
(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.
Amended by 2021 Ch. 325, § 21, eff. 7/1/2021.
Amended by 2014 Ch. 243, § 10, eff. 5/21/2014.
L. 64: p. 619, § 5. C.R.S. 1963: § 123-32-5. L. 75: (1)(a) and (1)(b) amended, (1)(c) repealed, and (3) added, pp. 706, 708, §§ 1, 10, 2, effective July 14. L. 88: (1)(a.5) added, p. 814, § 19, effective May 24. L. 93: Entire section amended, p. 1873, § 1, effective June 6. L. 94: (1)(b) and (1)(c) amended and (4) added, p. 589, § 2, effective April 7; (1)(e)(I) and (1)(e)(III) amended, p. 817, § 36, effective April 27; (1)(e)(III) amended, p. 1634, § 41, effective May 31; (1)(c) amended, p. 1791, § 6, effective 1/1/1995. L. 96: (4)(d) amended, p. 1800, § 24, effective June 4. L. 97: IP(1) and (1)(d) amended, p. 948, § 3, effective August 6. L. 2003: IP(1) amended and (1)(c.5) and (1.5) added, p. 1283, §§ 1, 2, effective July 1. L. 2006: (4)(d) repealed, p. 610, § 34, effective August 7. L. 2007: IP(1) amended and (1)(c.7) and (5) added, p. 743, §§ 19, 20, effective May 9. L. 2008: (1.5)(c) added, p. 1216, § 27, effective May 22; (1)(c)(V) repealed, p. 1901, § 83, effective August 5. L. 2009: (1)(c.5) amended and (1)(c.6) added, (SB 09-256), ch. 1559, p. 1559, § 20, effective May 21. L. 2010: (1)(d.5) added, (HB 10-1013), ch. 1900, p. 1900, § 8, effective June 10. L. 2012: (1)(c.4) added, (HB 12-1240), ch. 1313, p. 1313, § 18, effective June 4. L. 2014: (4) amended and (6) added, (HB 14-1292), ch. 906, p. 906, § 10, effective May 21. L. 2021: (1)(c.5) amended, (HB 21-1316), ch. 2012, p. 2012, § 21, effective July 1.
Amendments to subsection (1)(c) in House Bill 94-1213 and House Bill 94-1298 were harmonized. Amendments to subsection (1)(e)(III) in House Bill 94-1001 and Senate Bill 94-206 were harmonized.
(1) For the legislative declaration contained in the 2008 act enacting subsection (1.5)(c), see section 1 of chapter 286, Session Laws of Colorado 2008. (2) For the short title ("Student Success Act") in HB 14-1292, see section 1 of chapter 243, Session Laws of Colorado 2014.