Colorado Gov. Jared Polis put his signature on a sweeping school finance bill Thursday, changing the formula that funds the state’s public schools for the first time in decades and providing more than $80 million to districts in the next year.
That cash influx will gradually increase over the next six years to half a billion dollars annually.
“I am thrilled that today we have updated the school finance formula for the first time in 30 years, ensuring that Colorado schools and students have the resources they need to succeed,” the governor said in a statement. “With this new formula, we are ensuring that students of all backgrounds can thrive in our schools, strengthening Colorado’s future.”
Polis signed the bipartisan bill, House Bill 1448, at Virginia Court Elementary in Aurora. The new law generally will give rural school districts more money and will prioritize funding based on the number of students who live in poverty, are English language learners or have special education needs.
“This law is a monumental step forward for public education in Colorado and a breakthrough achievement for how we fund our schools,” House Speaker Julie McCluskie said in a news release. “For far too long, our school finance formula has not invested in the students with the greatest needs, underfunding rural districts and those serving more children in poverty.”
Rep. Jennifer Bacon and Sen. Rachel Zenzinger, who like McCluskie are Democrats, joined her and Republican Sen. Paul Lundeen, that chamber’s minority leader, in sponsoring the bill.
School education funding comes from a mix of state and local dollars. The state uses a complicated formula to determine how much each district needs, what the local funding share should be per district and the necessary amount of state aid to fill the remaining gap.
State money makes up just over half of total school funding this fiscal year.
Most of the local money comes from property taxes, and most of the state money comes from its general fund. Assuming future lawmakers keep the share of general fund dollars proportional to overall budget growth, the state education fund should remain at a balance exceeding $1 billion, state officials have said.
But if it doesn’t keep up, the bill’s opponents warned, the new formula would quickly drain the fund.
“This is the best opportunity we’ve had in decades to direct additional dollars to the districts and classrooms serving students with the greatest needs,” Bacon said in the release Thursday. “When we invest in high-quality public education, we’re investing in our future and I’m beyond proud to be championing a law that prioritizes student outcomes and opportunity for every child in our state.”
The funding changes will take effect for the 2025-2026 school year and will be phased in gradually over six years.
On Thursday, Polis also signed House Bill 188, which raises the base level of per-pupil funding and buys down the budget stabilization factor. That is the mechanism by which funding for schools was diverted from required levels to other needs in the state budget over the last 15 years. The governor and lawmakers celebrated that milestone earlier this year as they completed negotiations over the state budget.
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