Colorado’s School Funding Plan: Big Numbers, Small Impact?

Colorado plans to give K-12 schools nearly $195 million more next year, but that might not go as far as it seems. Lawmakers agreed to boost per-student funding by $440, bringing the total to over $12, 000 per child. Still, many rural schools worry the increase won’t cover rising costs or plug budget holes caused by fewer students. The state divides K-12 money between local taxes and state funds, with most coming from property taxes. Rural districts, hit by shrinking enrollment, could actually lose funding even with the increase. Eagle County, for example, expects $60, 000 less than last year. Schools there have already cut teaching jobs and programs because costs keep climbing while student numbers drop.Colorado has underfunded schools for years, thanks to past budget tricks like the “budget stabilization factor, ” which slashed $10 billion from school funds. A 2023 study found schools need $3. 5 billion more just to meet basic needs. Now, lawmakers are changing how they count students—shifting to a three-year average instead of four—which means recent enrollment drops will hit funding harder. Some districts will still gain despite fewer students. Roaring Fork, for instance, expects $1. 5 million more next year but spends over $1 million extra just on health insurance hikes. Superintendent Anna Cole calls the increase temporary relief, not a fix. She points to a 2023 study showing her district is $18 million short every year—a gap the state hasn’t addressed. Others, like Garfield Re-2, use most of their budget on salaries and benefits. A 2% pay raise next year will eat up 90% of their funding boost. The superintendent admits Colorado still ranks near the bottom nationwide for school spending. “It’s good they’re trying, ” he said, “but inflation is eating everything up. ”