Governor Signs New School Funding Formula Into Law
In a significant move for education funding in Colorado, Governor Jared Polis has officially enacted a new school finance formula, which is expected to channel an additional $500 million to schools over the next seven years. The historic signing took place on May 23, 2025, at Lukas Elementary School in Westminster, witnessed by students and several state lawmakers.
“Investments in education lead to better results for our students,” said Polis during the event, emphasizing the implications of the new funding on teacher salaries, classroom resources, and professional development.
A New Approach to School Funding
For almost thirty years, Colorado has seen minimal changes in the financial resources allocated to its schools. However, with this new formula, the state is poised to inject over $10 billion into education for the upcoming year, with a focus on districts that support high numbers of students facing socio-economic challenges, such as those from low-income families and English language learners.
The updated funding formula was influenced by a challenging state budget, which reported a deficit of approximately $1.2 billion. Despite these fiscal hurdles, lawmakers prioritized education, with the Joint Budget Committee allocating $150 million from the state’s general fund specifically for public schools. Moreover, a newly established “Kids Matter Fund” is set to ensure future protections against funding reductions, projected to accumulate around $230 million for educational operations in the 2026-27 school year.
Adjustments and Impacts
Although the new funding structure means districts will receive approximately $16 million less than initially anticipated for the 2025-26 school year, it avoids the more drastic cuts initially proposed by Polis. The previous funding reliance on a five-year student enrollment average will transition to a four-year average, thus phasing out the outdated averaging mechanism while still protecting districts from sudden financial losses.
“Every child deserves the opportunity to succeed,” stated Jeff Bridges, a Greenwood Village Democrat and sponsor of the legislation, underscoring the law’s aim to address inequities in school funding. The revised formula is intended to ensure equitable resource distribution across districts, acknowledging that varied student needs result in differing educational costs.
Funding Summary
| Funding Element | 2025-26 Amount | Projected Increase |
|---|---|---|
| State Funding for Education | $10 billion+ | +$500 million over 7 years |
| Base Amount Per Student | $8,692 | +$195 from previous |
| Kids Matter Fund | $230 million (2026-27) | N/A |
Polis and other leaders aim for this reform to result in more equitable funding and improved educational outcomes for all students in Colorado, affirming a commitment to educational progress and instilling hope for a more equitable future.
