Who Is In Charge

Bill could liven up higher ed discussions

This year was supposed to be a legislative session of sweetness, light and more money for Colorado’s colleges and universities.

Gov. John Hickenlooper proposed a $100 million increase for higher ed, both for institutions and financial aid, a significantly higher percentage increase than he suggested for K-12. (Total state dollar spending on school districts, of course, dwarfs higher ed budgets.)

Democratic lawmakers liked the idea so much they plucked it out of the governor’s budget and put it in its own bill, Senate Bill 14-001. That measure also includes a 6 percent cap on tuition increases in 2014-15.

A key part of the proposal is that all colleges will receive an 11 percent increase based on the current formula for distributing money to institutions. That formula is a combination of various old factors. Policymakers have been reluctant to tinker with that formula, which tends to disadvantage faster growing institutions, for fear of reigniting old intercollegiate battles over money.

While colleges are likely to get their money next year, those old feuds could be stirred by a bill being floated by House Speaker Mark Ferrandino, D-Denver. The speaker, a genuine budget wonk, is serving his last term.

A draft of that bill was circulated to colleges on Monday evening, and it could stir old disagreements about funding shares.

State aid comes to colleges and universities in two forms. One is called the College Opportunity Fund (COF), and it’s supposed to represent stipends paid to resident undergraduate students to reduce college costs. The second is called fees for service, and it’s supposed to represent money the state pays to institutions for such “services” as graduate education, providing remote areas of the state and enrolling underserved students.

In practice, the dual system is primarily a way for the state to avoid having to count tuition payments as revenue that would be subject to limits in the Taxpayer’s Bill of Rights.

Ferrandino’s proposal would more tightly define fees for service, and weight those payments based on such factors as institution size, research activity, graduate education, retention of students and degree completion. And it would set higher COF stipends for lower-income students who are eligible for federal Pell Grants.

There’s a lot of other complicated math in the bill, which wouldn’t go into effect until 2015-16, if it’s introduced and passed.

There isn’t much reaction yet to the bill draft. State colleges and universities, ever vigilant about protecting their financial interests, employ squads of analysts and lobbyists to scrutinize proposals like this, and you can be certain those folks are doing just that. A period of negotiation over the bill’s provisions is the likely next step.

The higher education system, which doesn’t have the same constitutional cushions as K-12, has been hit with two periods of significant budget cuts since 2000. But colleges, unlike public schools, can charge tuition, and those rates have steadily risen in recent years as institutions have tried to stay afloat. Tuition now provides roughly 75 percent of revenues.

Read the draft bill here.

Follow the money

In Denver school board races, incumbents outpacing challengers in campaign contributions

PHOTO: Melanie Asmar
Denver school board vice president Barbara O'Brien speaks at a press conference at Holm Elementary.
Donations to Denver school board candidates as of Oct. 12
    Barbara O’Brien, At-Large: $101,291
    Angela Cobián, District 2: $94,152
    Mike Johnson, District 3: $81,855
    Rachele Espiritu, District 4: $73,847
    Jennifer Bacon, District 4: $59,302
    Robert Speth, At-Large: $38,615
    “Sochi” Gaytán, District 2: $24,134
    Carrie A. Olson, District 3: $18,105
    Tay Anderson, District 4: $16,331
    Julie Bañuelos, At-Large: $7,737

Three Denver school board incumbents brought in more money than challengers seeking to unseat them and change the district’s direction, according to new campaign finance reports.

Board vice president Barbara O’Brien has raised the most money so far. A former Colorado lieutenant governor who was first elected to the board in 2013 and represents the city at-large, O’Brien had pulled in $101,291 as of Oct. 12.

The second-highest fundraiser was newcomer Angela Cobián, who raised $94,152. She is running to represent southwest District 2, where there is no incumbent in the race. The board member who currently holds that seat, Rosemary Rodriguez, has endorsed Cobián.

Incumbent Mike Johnson, who is running for re-election in central-east District 3, brought in far more money than his opponent, Carrie A. Olson. In a three-way race for northeast Denver’s District 4, incumbent Rachele Espiritu led in fundraising, but not by as much.

O’Brien, Cobián, Johnson and Espiritu had several big-money donors in common. They include former Denver Center for the Performing Arts chairman Daniel Ritchie, Oakwood Homes CEO Pat Hamill and Denver-based oil and gas company founder Samuel Gary. All three have given in past elections to candidates who support the direction of Denver Public Schools, which is nationally known for embracing school choice and collaborating with charter schools.

Meanwhile, teachers unions were among the biggest contributors to candidates pushing for the state’s largest school district to change course and refocus on its traditional, district-run schools. The Denver Classroom Teachers Association Fund gave the most money — $10,000 — to candidate Jennifer Bacon, a former teacher who is challenging Espiritu in District 4.

It gave smaller amounts to Xóchitl “Sochi” Gaytán, who is running against Cobián in District 2; Olson, who is challenging Johnson in District 3; and Robert Speth, who is running in a three-person race with O’Brien. Speth narrowly lost a race for a board seat in 2015. A supplemental campaign filing shows Speth loaned himself $17,000 on Oct. 13.

The two candidates who raised the least amounts of money also disagree with the district’s direction but were not endorsed by the teachers union and didn’t receive any union money. Tay Anderson, who is running against Espiritu and Bacon in District 4, counts among his biggest donors former Denver mayor Wellington Webb, who endorsed him and gave $1,110.

In the at-large race, candidate Julie Bañuelos’s biggest cash infusion was a $2,116 loan to herself. As of Oct. 11, Bañuelos had spent more money than she’d raised.

With four seats up for grabs on the seven-member board, the Nov. 7 election has the potential to shift the board’s balance of power. Currently, all seven members back the district’s direction and the vision of long-serving Superintendent Tom Boasberg. Mail ballots went out this week.

The new campaign finance reports, which were due at midnight Tuesday and cover the previous year, show that several of this year’s candidates have already raised more money than the candidate who was leading the pack at this time in the 2015 election.

O’Brien’s biggest contributor was University of Colorado president Bruce Benson, who gave $10,000. Other notable donors include Robin Hickenlooper, wife of Colorado Gov. John Hickenlooper; Lieutenant Governor Donna Lynne; and billionaire Phil Anschutz.

Several Denver charter school leaders, including Rocky Mountain Prep CEO James Cryan and KIPP Colorado CEO Kimberlee Sia, donated to O’Brien, Johnson, Espiritu and Cobián.

Political groups are also playing a big role in the election. The groups include several backed by local and state teachers unions, as well as others funded by pro-reform organizations.

Following the money

Douglas County slate that favors continuing school voucher court case is ahead in early fundraising, records show

Former State Board of Education member Debora Scheffel at a campaign event in 2016. Scheffel is now running for the Douglas County school board. (Photo by Nic Garcia/Chalkbeat)

A group of candidates that largely supports the direction of the Douglas County School District, especially its embrace of school choice policies, has raised nearly $100,000 in campaign contributions, new financial records show.

The group, which calls itself “Elevate Douglas County,” topped its competition, the “Community Matters” slate, by more than $30,000 in monetary contributions to committees for individual candidates.

A lot is at stake in the south suburban Denver school board contest. A majority of seats on the seven-member school board are up for grabs, putting the philosophical direction of the state’s third largest school district on the line.

For eight years, the school board has pushed a conservative education reform agenda that included developing a voucher program that would allow parents to use tax dollars to send their children to private school and establishing a market-based pay system for teachers.

While the Elevate slate has promised to reconsider and tweak many of the board’s most controversial decisions, such as teacher pay, the Community Matters slate has promised to roll back many of the previous board’s decisions.

The contrast between the two groups is most stark on the issue of the school district’s voucher program. Created in 2011, the voucher program has been tied up in courts ever since. The Elevate slate supports continuing the court case and reinstating the program. The Community Matters slate staunchly opposes vouchers and would end the court case.

According to records, the Elevate slate raised a total of $98,977 during the first campaign reporting period that ended Oct. 12. Grant Nelson raised the most, $34,373. The three other candidates — Ryan Abresch, Randy Mills and Debora Scheffel — each raised about $21,000.

All four candidates received $6,250 from John Saeman, a Denver businessman and the former chairman of the Daniels Fund. The foundation has financially supported the school district’s legal battle over the voucher program.

Other major contributors to the Elevate team are Ed McVaney, the founder of JD Edwards, and businesswoman Chrystalla Larson.

The Community Matters slate raised a total of $66,692 during the same period. Candidate Krista Holtzmann led the pack, raising more than $21,000. Her teammates — Anthony Graziano, Chris Schor and Kevin Leung — raised between $13,000 and $15,000 each.

Among the major donors to the Community Matters slate are Clare Leonard and Herschel Ramsey. Both Parker residents gave $1,000 each to all four candidates.

The campaign finance reports that were due Tuesday tell only part of the story. Earlier this week, special interest groups working to influence the election were required to report their spending.

The American Federation of Teachers, the nation’s second largest teachers union, has pumped $300,000 into the race in an effort to support the Community Matters slate.

Meanwhile, Americans For Prosperity, a conservative political nonprofit, is running a “social welfare” issue campaign promoting school choice. Because the nonprofit is not directly supporting candidates, it is not required to disclose how much it is spending. However, the organization said in a statement the campaign would cost six-figures.