School Finance Mid-Year Adjustments

Plain English Breakdown

The official summary confirms the reduction amount and reasons but does not provide a specific calendar effective date beyond the fiscal year reference.

School Finance Mid-Year Adjustments for 2025-26

This law reduces the amount of state money sent to public schools because student counts are lower and local funding is higher than expected.

What This Bill Does

• Decreases the state share of districts' total program funding by $103,472,508 for the 2025-26 budget year.
• Clarifies that if the new formula calculation is lower than the old formula, a district's funding will be based on either last year's amount or this year's old formula calculation, whichever is higher.
• Reduces appropriations to the Department of Education by $103,472,508.

Who It Names or Affects

• Public school districts in Colorado
• The state Department of Education

Terms To Know

Total program funding

Money used to finance public schools, which includes both state and local shares.

Old formula

One of two methods currently in law for calculating school district funding amounts.

New formula

A second method currently in law for calculating school district funding amounts.

Limits and Unknowns

• The official summary does not list specific dollar amounts for individual school districts.
• The effective date is listed as blank in the provided metadata, though the bill applies to the 2025-26 budget year.

Official Summary Text

Compared to what was anticipated when appropriations were established in the 2025 regular legislative session for the 2025-26 budget year, the general assembly finds that for the 2025-26 budget year the actual funded pupil count and the at-risk pupil count are lower than anticipated; the local share of total program funding is higher than anticipated; and therefore, the general assembly intends to decrease the state share of districts' total program funding by $103,472,508 for the 2025-26 budget year.
Under current law, there are 2 total program formulas to finance public schools, commonly referred to as the old formula and the new formula. For the 2025-26 budget year, a district's total program is the greater of:
The district's total program amount for the 2024-25 budget year; or
The amount calculated for the 2025-26 budget year under the old formula plus an amount equal to 15% of the difference between the amounts calculated between the old formula and the new formula.
The act clarifies that for the 2025-26 budget year, if the calculation under the new formula is less than the calculation under the old formula, then that district's total program for the 2025-26 budget year is the greater of:
The district's total program amount for the 2024-25 budget year; or
The amount calculated for the 2025-26 budget year under the old formula.
The act reduces appropriations to the department of education for the 2025-26 budget year by $103,472,508.
(Note: This summary applies to this bill as enacted.)