Dear Weld RE-4 Community,

In our commitment to transparency, we wanted to share a high-level overview of the 2025 - 2026 Budget with you as we begin this new school and fiscal year. Each year we work to align our budget with our strategic plan and our vision to Engage, Educate, and Empower our students and staff.

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.

Revenue

• Per Pupil Revenue — The state legislature increased our main source of funding, Per Pupil Revenue, from $10,791 to $11,045. If fulfilled, this amount is only a 2.3% increase, which is the required inflation rate for all districts. Many other districts received more funding than inflation due to the structure of the new School Finance Act.
• 2022 Bond and Mill Levy Override — We continue to collect locally-supported tax revenue in the “Debt Service Fund” to support bond debt repayment. Thank you to our community for investing in our schools. Your investment is coming to life across the district, and, as of this month, all projects outlined on the ballot measure will be substantially complete. 

Expenditures

• Instructional Support — The majority of our General Fund expenses continue to be in the form of staff salary and benefits (82%). Viewed through a different lens, we are proud to report that 68% of our total expenses are allocated directly to instruction and instructional support. 
• Recruitment & Retention — With the opening of the new middle school this fall, we have shifted staff across the district to serve students in alignment with the changes from the new school boundaries. We added the equivalent of 23 full-time positions across the district, the majority of which are non-transferable positions for the new schools, like front office staff, custodians, and more.
• Facility Projects — Projects for the 2022 bond measure are substantially complete. We continue to work through additional repair and replacement projects as approved by the Bond Oversight with contingency funds. The bond website is updated monthly with the status of each project. 

The district is utilizing $1,000,000 of fund balance, our reserves, to balance the budget after building in savings from discretionary reductions, retirees, and lease terminations. We recognize this is not a long-term solution. Our Finance team is working to understand the comprehensive impact of the new School Finance Act and future growth on our financial future. We will share more in the coming months.

For complete information on our budget and school funding, visit our Financial Transparency or School Funding pages.

Sincerely,

Michelle Scallon

Superintendent

Nikki Schmidt Chief Financial Officer