DENVER — Addressing how Colorado schools will receive future funding was a key goal of this year’s legislative session, which wrapped up last week. At the beginning of the session, lawmakers faced a critical decision point as they grappled with a $1.2 billion budget shortfall while also implementing a new school financing formula passed the previous year.
Governor Jared Polis proposed a budget that increased overall funding, but changes to how schools count students raised concerns among many districts about potential funding losses.
Executive Director of the School Finance Project Tracie Rainey said compromise prevailed in the end.
"Districts experiencing declining enrollment, which represent the majority of districts in the state, will now have the opportunity to average the impact over four years instead of five,” Rainey said.
Additionally, the new finance formula will be implemented gradually over seven years instead of six. A last-minute addition to the School Finance Act by Repubublican State Senator Barb Kirkmeyer and Democratic State Senator Chris Kolker also established the Kids Matter Fund, which will redirect a portion of the state’s tax revenue to education.
Currently, the fund is estimated to generate around $200 million annually. However, Rainey noted it is not new funding, rather existing revenue that’s being diverted.
Rainey said, fundamental questions remain about the amount of funding Colorado should allocate to schools. Lawmakers agreed to fund two adequacy studies aimed at determining the actual cost of education and exploring ways to increase revenue. Working groups will convene this summer as lawmakers continue to address these challenges and consider uncertainties surrounding federal funding for education.
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