School Finance Act

In Colorado, education is primarily funded through the School Finance Act. This law outlines that school districts receive a set amount of funding per student, or what’s called Per Pupil Revenue. This is our district’s main source of funding, accounting for approximately 82% of our General Fund revenue.

We anticipate receiving $11,045 per student for the 2025 - 2026 school year. If fulfilled, this amount is only a 2.3% increase, barely in line with inflation rates as required by law. Of the 178 school districts, we receive the lowest amount of in-school Per Pupil Revenue in the entire state of Colorado.

How is Per Pupil Revenue Calculated?

Revenue is based on a calculation determined by the state legislature. Each year, the legislature sets the foundational amount all districts receive, and then there are additions based on our district’s cost of living; size; locale; online / extended high school participants; and counts of students identified as at-risk, English Language Development Learners, and Special Education. Our district does not receive any funding for the locale factor and size factor, which negatively impacts our overall Per Pupil Revenue amount.

How is Per Pupil Revenue Funded?

Per Pupil Revenue is funded through two sources: 1) local property taxes at the maximum 27 mills and 2) state revenue. Whatever portion of the state-determined Per Pupil Revenue our local property taxes don’t cover, the state provides the additional funding. As our assessed values grow, the local funding source provides more and the state side provides less. The total funding received does not change.

New School Finance Formula

The Colorado Legislature passed a new school funding model at the end of the 2024 session that had a minimal impact on our district’s main source of revenue — Per Pupil Revenue. This legislation was supposed to go into full effect for the 2025 - 2026 school year, but full implementation was extended. Changes were made to the law again this session that will negatively affect our financial future, like eliminating a factor that reduced our Per Pupil Revenue by 0.5%.

While the new model is, in general, a step in the right direction, it does not address the significant inadequacies in Per Pupil Revenue base funding as identified as a critical need by two independent studies commissioned by the state. The new funding model does not benefit our district like it does our neighboring districts. For the 2025 - 2026 school year, we anticipate receiving the lowest amount of in-school Per Pupil Revenue in the entire state of Colorado.

Financial Transparency

As stewards of taxpayer investment, transparency and accountability are important to us.

In accordance with the Colorado Public School Financial Transparency Act, our budget, audit reports, salary schedules, and more can be found on our Financial Transparency page.

Each quarter the Board of Education receives updated financial reports, which are posted with the agenda and are publicly available on our website.

Last, but certainly not least, each year our annual budget is prepared with and approved by our Board of Education in work sessions and regular meetings. Typically, this process begins in the spring and is approved in June. Meetings are open to the public, both in person and via livestream. Learn more on the Board of Education page.

Developer Impact Fees

New housing developments in our district must provide land for a school location, pay a cash-in-lieu fee to help offset the growth, or both. The amount of land or fee is determined by a calculation, as outlined in Intergovernmental Agreements (IGAs) with our local municipalities.

Currently, the fee amount is set at $2,916 per single-family home. Changes to the calculation or fee amount can only be implemented through updates to the IGAs with each municipality and approvals by their respective governing boards. The funding received can only be used to purchase or prepare school sites. Revenue to build, operate, and maintain new schools is dependent upon taxpayer-approved funding.

Additional Funding Mechanisms

To address needs beyond what is provided by Per Pupil Revenue, there are two primary funding mechanisms available to school districts:

  1. Bonds - Typically used to fund capital projects (school construction). Bonds have a set payback period, similar to a home loan.
  1. Mill Levy Overrides - Typically used to fund operations (teacher salaries, operational costs, etc.). Mill levy overrides can be for a set period of time (sunset) or ongoing.

Both bonds and mill levy overrides are funding mechanisms supported by property taxes within our district boundaries, and require taxpayer approval to implement.

Budget Stabilization Factor

As a result of the Great Recession, the state legislature created the State Budget Stabilization Factor or the Negative Factor. This factor reduces the amount of funding school districts receive, as outlined by law, as a way to “balance” the state budget. In total, our district lost $64.2 million in funding since the Budget Stabilization Factor went into effect.

The 2024 - 2025 school year was the first year we did not see a reduction in our funding due to the Budget Stabilization Factor. With HB25-1320, the Budget Stabilization factor has been eliminated. However, there are no plans in the legislature to replace the lost funding from the last decade, and with the state budget issues, we are not optimistic that the Budget Stabilization Factor won’t return.

PROPERTY TAXES & VALUATIONS

How Are Property Taxes Calculated?

Property taxes are determined by using the following calculation:

Actual Value x Assessment Rate = Assessed Value 

(Assessed Value x Tax Rate [Mills]) / 1,000 = $ Taxes Owed

Note: Property values are revalued in odd years.

What Is a “mill”?

A “mill” is equal to one dollar per $1,000 of assessed value. 

Why Would the Mill Amount Reduce?

If a school district asks for a fixed number of mills, the actual funding it receives will increase if property values increase. Voters approved a dollar amount for the 2022 Bond and mill levy override, not a fixed number of mills. This means that we will receive the same funding through the 2022 Bond and mill levy override as originally requested, and the bottom line impact to tax payers is less than anticipated due to the increase in property values and growth of the area.