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Colorado lawmakers approved a state budget for next year that has more money for colleges, universities, and K-12 schools. But the increase is less than what was promised or requested.
Lawmakers finalized the $43.9 billion spending plan for the 2025-26 year earlier this week after months of debate about how to close a $1.2 billion spending shortfall. The shortfall was caused by increased costs for programs such as Medicaid and voter-approved caps on state spending.
Lawmakers had promised more funding for K-12 schools through a school finance formula rewrite last year. But the shortfall means the increase will be about $16 million less than originally expected.
Colleges and universities will also get far less than higher education leaders requested. Instead, lawmakers will allow them more flexibility in raising tuition rates to cover expenses.
The budget also provides increases for the state’s early childhood initiatives.
Gov. Jared Polis will need to sign the budget bill to give it final approval.
Here’s what’s in the 2025-26 budget:
- The budget will bring total K-12 state and district spending to $10 billion next year and increase spending per student to an average of $11,852, or an increase of $412 over the $11,440 average this year. The budget includes about $256 million more in state spending than last year.
- Almost every school district, except for 21 that have declining enrollment, will get a funding increase. The state funds schools on a per-student basais, but a “hold harmless” provision means the 21 districts with declining enrollment won’t get less funding.
- Colorado will cap the Building Excellent Schools Today grant program, which helps districts fund construction projects, at $150 million, saving $45 million next year.
- The budget and an accompanying bill still under consideration propose to fund the Healthy School Meals for All program, which provides free school lunches for every student, for only half of the 2025-26 school year and decrease the number of eligible schools statewide. Lawmakers want to get a measure before voters in November to increase funding for the program, which would eliminate the need to scale it back.
- Lawmakers made cuts to school grant programs. For instance, the state will save $5 million by reducing high-impact tutoring program grants.
- Colleges and universities will get $38.4 million more next year for operations and student financial aid, bringing higher education general fund spending, which includes museums, to about $1.7 billion. The $38.4 million increase is less than the additional $95 million that school leaders said they need.
- Colleges and universities will be allowed to increase resident and non-resident tuition by 3.5% next year. Those increases would allow schools to collect about $3 billion total in tuition next year.
- The state will spend about $14 million more on the Department of Early Childhood, bringing total spending to $802 million. That includes $318 million more in general fund spending, or about $24 million more than last year.
- The state’s Universal Preschool Program, which offers free preschool to all 4-year-olds in the state, will get $6 million more next year for its operations.
- The budget also increases funding for the state’s Early Intervention program by $12.6 million. The program provides support services for babies and toddlers with disabilities or those at risk of developmental delays.
- And lawmakers preserved a pilot program that increases wages for some child care workers across the state. The state will spend $2.9 million to continue the program.
This story has been updated to reflect that state colleges and universities will be allowed to raise resident tuition by 3.5%. An earlier version of this story had an incorrect number due to an error in a state memo.
Jason Gonzales is a reporter covering higher education and the Colorado legislature. Chalkbeat Colorado partners with Open Campus on higher education coverage. Contact Jason at jgonzales@chalkbeat.org
