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SB 1262 (Archuleta)
Title: Education Finance: Community Colleges: General Fund Balance
Status: Senate Education Committee
Position: Oppose
Summary:
This bill would place a cap on community college district (CCD) unrestricted General Fund reserves beginning in fiscal year 2027-28.
Specifically, the bill would prohibit a CCD from maintaining an annual unrestricted General Fund ending balance that exceeds 50% of that year’s unrestricted General Fund expenditures, unless the district satisfies all three of the following conditions:
- Participation in the Part-Time Community College Faculty Health Insurance Program;
- Participation in the Part-Time Faculty Office Hours Program; and
- At least 75% of credit instruction hours are taught by full-time faculty.
If a district exceeds the 50% cap and does not meet all three conditions, the amount above the cap would be required to be proportionally distributed to nonsupervisory and nonmanagement employees based on hours worked in the prior fiscal year, as determined through collective bargaining. The bill also includes language intended to prevent districts from circumventing the cap by transferring funds to other accounts if those transfers would cause the receiving fund to exceed 33% of unrestricted General Fund expenditures.
