Why It Matters
Colorado legislators approved nearly $10.2 billion in K-12 education funding for the coming fiscal year, avoiding cuts despite facing a $1.5 billion state budget deficit. The spending plan continues the rollout of a new school funding formula adopted in 2024, though the full phase-in remains years away.
School districts that lost $10 billion in combined funding over 15 years during and after the Great Recession now face a protected baseline as lawmakers prioritized education amid fiscal constraints.
What Happened
The General Assembly passed its school finance bill after a 120-day legislative session marked by budget concerns. Lawmakers increased education spending while maintaining a phase-in schedule for the new funding formula, which will provide districts an additional $500 million once fully implemented in fiscal year 2031-32.
For the current school year, districts received an additional $75 million under the formula. Next year’s allocation will reach $150 million, representing 30 percent of the total planned increase.
State Sen. Chris Kolker, a Centennial Democrat who sponsored the legislation, said keeping education funding intact was a bipartisan priority. State Sen. Barbara Kirkmeyer, a Brighton Republican on the Joint Budget Committee, called K-12 funding a constitutional mandate and critical for economic mobility.
By The Numbers
Colorado’s K-12 education budget reached nearly $10.2 billion. The state faced a roughly $1.5 billion budget shortfall. Districts will receive $150 million in additional funding under the new formula next year, up from $75 million this year. School districts collectively lost $10 billion in funding over 15 years beginning during the Great Recession. The new formula’s full implementation is scheduled for fiscal year 2031-32.
What Got Cut
The Teacher Recruitment Education and Preparation program, which helped high school students pursue teaching careers, will end in 2027 after serving one more class of seniors. The program was among high-profile cuts lawmakers made to balance the budget.
Chuck Carpenter, chief of finance for Denver Public Schools, said the outcome was favorable given the fiscal environment. District officials acknowledged legislators’ efforts to shield education from deeper reductions.
Zoom Out
Colorado’s protected K-12 spending stands in contrast to cuts other states have made during budget shortfalls. The state previously used a budget stabilization factor to give schools less than constitutionally required amounts, a practice lawmakers began reversing with the 2024 funding formula overhaul.
Melissa Gibson, executive director of the Colorado Association of School Executives, said legislators recognized that education investment remains a priority after years of underfunding.
What’s Next
Lawmakers referred a November ballot measure asking voters to forgo tax refunds under the Taxpayer’s Bill of Rights to direct more money to education. A separate ballot initiative seeks signatures to establish a graduated income tax structure that would generate additional school funding.
If voters approve either measure, the state could accelerate implementation of the new funding formula and insulate districts from future cuts. Lawmakers anticipate another difficult budget year ahead.