School Funding

Funding for school districts in Colorado is based on a complex formula that relies on a range of factors to determine how much money each district receives for its students.

CCSD Budget Overview

For FY 2023-24, CCSD’s total annual operating budget was $733 million. Of that, more than 90% goes to people by way of salaries and benefits, and more than 83% is spent on direct classroom instruction for students. Less than 3% of the total operating budget is spent on administration, which includes principals and assistant principals.

To learn answers to frequently asked questions about school funding issues, see below:

How does school funding work?

Funding for school districts across Colorado, including the Cherry Creek School District, is determined by the 1994 School Finance Act (“Total Program” and “Per Pupil Funding”).

Does an increase in property taxes mean more money for schools?

The funding is a mix of State and Local sources. An increase in local funding (i.e. rising property taxes) does NOT provide schools with more money, it just means the state contributes less.

Importantly, the School Finance Act does NOT provide any funding for facilities or capital construction needs of schools. The only way CCSD receives additional funding for capital construction needs or operating expenses like teacher pay is by voter-approved measures such as Bonds and Mill Levy Overrides.

Note: Local Share refers to School Finance Act funding only and Operating is not inclusive of Mill Levy Overrides which are tied to inflation and account for approximately $2700 per pupil.

I thought schools were “fully funded” now?

This year is the first time that state lawmakers have funded the School Finance Act since 2009. The Budget Stabilization Factor (BS Factor) was created in 2010 due to the fiscal challenges facing the state. The new factor was and is a state budget tool that proportionately reduces the amount of total funding for each school district. Colorado school districts have been negatively impacted by the BS factor, forcing districts to cut budgets and continue to make staffing reductions. Over the past 14 years, because of the BS factor, the State has withheld $675M from CCSD, and $11 billion from school districts across the state. Now, after more than a decade of cuts, the State plans to pay off the BS factor. This is welcome news; however it only brings funding to 1989 levels and does not make up for the significant cuts that CCSD and school districts across Colorado have faced.

Where does Colorado rank in the nation for K-12 education funding?

Colorado continues to fall behind other states in terms of funding for K-12 education, trailing the national average by $2,000 to $2,500 per student per year. Currently, Colorado ranks in the bottom third of states for K-12 education funding.

What about the marijuana money that was promised for schools?

In 2012, Colorado voters approved the legal sale of marijuana to adults 21 and older with a portion of the tax revenue going to education. The amount of tax revenue that comes from marijuana sales is minimal – around 1% of the state’s total education budget – and is directed to a variety of programs, including school construction, bullying prevention, and behavioral health.

The first $40 million generated each fiscal year from retail marijuana excise tax credits the Colorado Capital Construction Assistance Fund. Marijuana tax revenue is just one of four funding sources for the Fund, the total of which is only a fraction of what is needed to repair, maintain and construct Colorado’s public schools. The money is awarded through the BEST (Building Excellent Schools Today) grant program which prioritizes health, safety and security issues such as asbestos removal, new roofs, building code violations, and poor indoor quality. BEST grants are competitive and often must be supplemented with local district matching funds. To date, CCSD has not received any BEST grant funding.

This information was pulled from the Colorado Department of Education website. For more information, visit https://www.cde.state.co.us/communications/2021marijuanarevenue.