CU DENVER SCHOOL FINANCE

PANEL

Tracie Rainey

February 6, 2026

WHO WE ARE

Our Mission: To compile, collect and distribute research-based, non-partisan information and data on topics related to school finance for state and local policymakers.

CSFP also supports school districts by providing expertise, technical assistance and capacity building related to best practices in school finance.

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Non-profit, non-partisan�Supported by school district contributions�School Finance analysis for local and state policy makers since 1995�Governed by a board comprised of national and state experts on school finance

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SCHOOL FINANCE TASK FORCE

SCHOOL FINANCE TASK FORCE

• SB23-287 created a Public-School Finance Task Force for the purpose of examining and making recommendations concerning making the school finance formula simpler, less regressive, and more adequate, understandable, transparent, equitable and student-centered.
• 9 meetings, 17 task force members appointed by legislative leadership.
• Two main charges
• Adequacy studies – parameters to be set by task force,  the studies to be completed by January 2025
• Formula changes – task force to make recommendations which could be implemented in FY24-25

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February 2026

SCHOOL FINANCE TASK FORCE - Recommendations

• Increase the base funding levels for student education in Colorado by $500.
• Increase At-Risk weight to at least 0.31
• Rebasing the cost-of-living factor utilizing 2021 as a base
• Rebasing the cost-of-living factor should occur at minimum every 2 years while accounting for the historical average of districts.
• Explore establishing additional or alternative factors, including a potential Colorado based “cost of doing business” factor, that reflects the additional costs of districts to hire and retain staff and account for the increasing basic business needs.

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February 2026

SCHOOL FINANCE TASK FORCE - Recommendations

• Increase ELL weight in total program funding to at least .5 with removing the time limit
• Utilize categorical funding to address Gifted and Talented Students with a weight of at least .25
• Include additional Special Education Tier A and B student weights in the formula. Tier A students' weight would be at least 0.5. Tier B students would be at least 0.85.
• Utilize categorical funding to address students with complex or higher special needs, sometimes referred to as Special Education Tier C.

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February 2026

SCHOOL FINANCE TASK FORCE - Recommendations

• Recommend utilizing the current size factor calculation, but remove the size factor benefit for districts educating 1,027 students or more and incorporating a remoteness weight having districts receive weights based on their NCES classification:
• Rural: Remote = 0.25
• Rural: Distant = 0.2
• Rural: Fringe = 0.15
• Town: Remote = 0.1
• Town: Distant = 0.05
• Town: Fringe = 0.025

February 2026

ADEQUACY STUDIES

WHAT IS AN ADEQUACY STUDY?

• An Adequacy Study works to understand the resources necessary for students, teachers, schools, districts and states to meet education standards and requirements.
• Studies have been done in well over 20 states and they have been commissioned by Governors, Legislatures, Departments of Education and advocacy groups.
• This is first time the State has commissioned this study – studies were released in January of 2025
• These studies do not include facilities or transportation

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February 2026

THREE APPROACHES, TWO CONSULTANTS

• Colorado required that two separate vendors undertake separate studies
• One vendor had to use input-based approaches (evidence-base and professional judgment approaches output-based and one vendor had to use an output-based approach (cost function)
• Both studies were required to look at all of the same parameters

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February 2026

ADEQUACY STUDIES CONT’D

• Education performance has been stagnant or decreasing for our students who need supports for Special Education, English Language Learners and At-Risk.
• Both studies highlight the need to make adjustments for district size and cost of doing business and support a wage index be implemented.

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February 2026

COMMON THEMES

• Colorado’s current funding is billions below what is needed to adequately serve students
• Teacher compensation is below what is needed
• Higher need districts/schools have lower performance and lower resources available
• Neither study recommends specific adjustments using the locale factor

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February 2026

NATIONAL STATISTICS

• Colorado has the lowest teacher pay when compared to like degreed candidates
• Colorado has larger student to staff ratio than the national average
• Colorado puts less of its personal income toward public education than the national average
• Colorado has less instructional time than many states
• Colorado is about $1700 below national average in per pupil spending (excluding capital)

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February 2026

February 2026

SCHOOL FINANCE

FORMULA

CURRENTLY

• In May of 2025 - we ended the session with the passage of SFA with 15% implementation and 4-year averaging (a reduction from 5-year)

February 2026

Buena Vista School District

Find individual districts here

GOVERNOR’S PROPOSAL

February 2026

• Governor's proposed budget - implement SFA at 30% and three averaging
• This is how SB26-023 was introduced for 26-27
• Changes to residential assessment rate 7.06% and non-residential 25% (this is a reduction of local share contribution).
• 2027-28 recommendations
• Implement at 50% versus statute at 45%
• Two-year averaging
• Sweep all the Specific Ownership Taxes that are currently going to school districts outside of total program funding - this equates to $170-$220 million loss for districts

GOVERNOR’S PROPOSAL AND �Specific Ownership Taxes

February 2026

East Grand School District

Governor’s proposal impact by District

SOT loss by District

ON THE HORIZON

POTENTIAL BALLOT MEASURES and Legislation

• Graduated Income Tax – Citizen’s initiative
• De-Brucing – Referred Measure
• Other measures that could reduce funding by making changes in income tax.
• By late spring a much better idea of what measures signatures are being collected and by August what signatures that get turned in.
• GET IT DONE – K-12 working with legislators to adopt legislation for implementation of adequacy studies – creating a long-term plan

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February 2026

FEDERAL FUNDING

FEDERAL FUNDING FOR CONSIDERATION

• Funding maybe impacted with changes to Medicaid and SNAP
• These changes may impact FRL count
• With the layoff of Federal Employees, this may impact operations and timing.
• Special Education teacher training dollars have been halted and uncertainty around HeadStart dollars
• It will be important to stay diligent regarding what is proposed in the 26-27 Federal budget to determine whether these funds will continue in the future
• Implementation of a national voucher program to be determined at the state level
• Uncertainty over dismantling of Department of Education

February 2026

CONTACT US

Phone

303-941-1633

Email

t.rainey@cosfp.org

Website

www.cosfp.org

Tracie Rainey – Executive Director