Colorado Schools Get a Boost, But Some Districts Lose Out

Colorado lawmakers pushed through a new education funding bill that raises the state’s total money for K‑12 schools by about $180 million. The plan adds $449 to each student’s budget, bringing the average to roughly $12, 325 for the 2026‑27 school year. Most districts will keep or grow their funding, helping to stop a long‑running shortfall in the state’s school budget. The bill was signed on May 28 by Governor Jared Polis. It follows a tough fiscal year in which the state cut programs such as Medicaid, teacher recruitment and clean‑energy incentives to cover a nearly $1. 5 billion gap. Because of those cuts, lawmakers had to decide how much money could still be sent to schools without further reductions. A key change in the law concerns the cost‑of‑living adjustment. Normally, a new study every two years updates how much money each district receives based on rising housing and living costs. The final version of the act keeps last year’s figures instead of using the latest data, to avoid sudden drops in funding for many schools. This decision was made after lawmakers learned that the new cost‑of‑living numbers would have cut money for about 43 districts, including some in rural areas that serve vulnerable students.The new rule also speeds up the timing of future studies: they must finish by January 1 and be sent to districts within 14 days. This should give schools enough notice before budgets are set. Western Slope districts feel the impact of this pause. Garfield’s Re‑2 district, for example, was set to gain more than $2. 3 million next year but will now receive about $225, 000 less because of the older cost‑of‑living factor. Aspen’s budget will shrink by roughly $13, 000. These adjustments mean that while the state overall is investing more in education, some communities see smaller increases. Another tweak changes how student numbers are averaged for funding calculations. Starting in 2027‑28, the state will use a three‑year average instead of four years. This gives recent enrollment declines—expected to reduce total student counts by about 16, 000 in 2026‑27—a greater influence on district budgets. The formula also caps the effect of a sudden drop in enrollment, ensuring that districts are not hit too hard by temporary changes. The law also outlines a phased plan to fully adopt a new school finance formula by 2030‑31. Colorado will spend about $150 million in the first year of this rollout, covering roughly 30% of the total estimated cost. Despite budget limits, lawmakers claim the act marks a significant step toward stronger funding for public schools.