Colorado Public School Finance

TOTAL PROGRAM FUNDING

Colorado public schools receive money from a variety of sources. However, most revenues to Colorado's 178 school districts are provided through the Public School Finance Act of 1994.

The total amount each school district receives under the School Finance Act is referred to as “total program,” which includes both the state share and local share. The local share is generated through property taxes and specific ownership taxes (vehicle ownership taxes).

Total program funding equals:

Colorado school funding formula for 2024-2025:

_{After the total program is calculated, the budget stabilization factor (formerly the negative factor) is applied. The budget stabilization factor was established in 2010-11 by the legislature as a way to reduce funding to districts to balance the state budget. Once}_total_{program is calculated per the School Finance Act, the budget stabilization factor is applied to district’s total program funding}

BASE PER PUPIL FUNDING AND FACTORS

Here are the factors that adjust base per pupil funding:

Cost of living: Determined by a legislative study every two years. Districts with higher costs of living have a higher factor. For example, Aspen has a higher cost of living factor than Center.
Personnel costs: Personnel costs vary by school district based on enrollment. For all districts, employee salaries and benefits represent the largest single expense. As such, the formula directs funding based on application of the above cost of living factor to estimated personnel costs.
Size of district: Similar to the personnel costs, the size factor is unique to each district and is determined using enrollment. Small districts have larger size factors than districts with higher enrollment.

DISTRICT EXAMPLE: TOTAL PROGRAM FUNDING

Below is an example of how the total program is calculated based on their final appropriation. There are many additional calculations. Each district has different calculations based on individual demographics and characteristics.

Each element of the formula has its own formula behind it. For example, the size factor is determined by a formula for each district. The at-risk funding has its own formula, etc.

The image shows a circle, a minus sign, and a square. The circle is labeled

This is the third section of the example school funding formula. It shows two groups separated by a plus sign. Group 1: Cost of Living (1.208), Personnel Costs (90.04%), Base Funding ($8,496.39), multiplied in order. Group 2: Non-Personnel Costs (1 minus 90.04%), Base Funding ($8,496.39), also multiplied together. The totals from each group are then added, with the entire equation in parentheses.

This is the fourth section of the example school funding formula. It shows a multiplication sign, yellow circle, plus sign, green rectangle, another plus sign, and blue rectangle. The yellow circle is labeled 1.0297 (size factor), which adjusts for purchasing power between larger and smaller districts. The green rectangle is labeled

This is the fifth and final step of the school funding formula example, showing an equal sign and two rectangular boxes with the word “OR” between them. The rectangle on the left is labeled “$248,429,663.20, total formula funding” and the rectangle on the right is labeled “$11,313.34, per-pupil funding”.