School Views: Bracing for budget shortfalls
Time and again, I’ve railed against the dysfunctional model used to fund Colorado public schools. The Budget Stabilization Factor, the Taxpayer Bill of Rights, and other issues compound to make Colorado one of the most underfunded states in the nation in regard to public education. Last year the state legislature attempted to improve the situation in two ways.
In 2024, the Colorado legislature passed a new school finance formula, the first in 30 years. It would have invested more in public schools over the next six years, but it can be paused if the state budget is in turmoil.
That is the case in 2025, so we don’t anticipate that the new finance formula will take effect. Also, after 15 years, the legislature finally ended the Budget Stabilization Factor, which withheld school funding to balance the state budget. With those changes, they were able to claim that Colorado schools were “fully funded,” but two recent adequacy studies commissioned by the state legislature agree that the state underfunds public education by at least $3.5 billion annually. So it is misleading to boast that schools are “fully funded,” — and we now face severe shortfalls as we plan for the 2025-2026 school year.
Today, the state of Colorado is facing a significant budget deficit of $1.1 billion. Due to declining tax revenue, rising Medicaid and health care costs, the end of federal pandemic relief funds, and constraints imposed by the Taxpayer’s Bill of Rights, the state is considering delaying the implementation of the new school finance formula, eliminating multi-year averaging for student enrollment calculations, and reinstating the Budget Stabilization Factor.
This will once again put schools across the state in the position of being grossly underfunded. Before I go on, I want to make one thing clear: this is happening to all public school districts across the state of Colorado, not just Eagle County School District.
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The effect is that school districts across the state are preparing for budget shortfalls. Preliminary estimates indicate that at best, Eagle County School District funding will be flat, but more likely reduced at the state level.
To prepare for these shortfalls, I have asked all schools and departments to review their budgets and look for ways to reduce spending. This is a difficult but necessary task to ensure our budget remains stable and we don’t jeopardize our mission.
Any cuts made will be shared proportionately between schools and operations. Meaning, we intend to reduce budgets at the district level at the same rate as school budgets, to distribute the effort fairly throughout the entire organization.
We strive to keep administrative and operations costs low. Eagle County School District ranks 28th lowest in administrative costs out of 178 Colorado districts. I encourage you to visit the Colorado Department of Education website and examine the ratio that Eagle County School District spends on Learning Environment compared to Operations. You will see Eagle County School District compares well against other districts, directing as much funding as possible to classrooms. The Colorado School Finance Project also shared comparison data on administrative spending, which can be viewed on our website.
We are beginning to work with the Eagle County Education Association — the local teachers’ union — on the negotiation process for next year. This is a team effort, and it takes all of us. And that extends to our community as well. The Mill Levy Override is one of the few things the district can do to increase funding and improve compensation for our entire staff, but that takes community support. We won’t have a Mill Levy Override on the ballot this November but will likely move in that direction in 2026 as the state continues to drop the ball on school funding.
Follow what is happening at the state Capitol, and if you ever have any questions about school finance or district priorities, reach out. I am always available to speak whether you are a parent in our district, a staff member, a student, or a resident who wants to know how their tax dollars are allocated. Eagle County School District is committed to financial transparency and collaboration with all.
Philip Qualman is the superintendent of Eagle County School District. Email him at philip.qualman@eagleschools.net.
