BOE Update - 2026-27 Budget Development Process - 12-09-25.pdf (4,856 KB)

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Board of Education | December 9, 2025

2026-27 Budget Development Process And Budget Outlook

2026-27 Budget Development Process

The Fiscal Cycle

Fiscal Cycle and Budget Process

September

Audit presentation to Board of Education

Current Year First Quarter State Revenue Forecast

January 2025-26 Revised Budget Adoption

NOW

December

FY 26-27

FY 25-26

FY 24-25

28-month ﬁscal process spanning three ﬁscal years

December Budget Development Process and Budget Outlook for next ﬁscal year

2026-27 Budget Development Process

Timeline & Milestones

Last Year

FY 24-25

This Year

Next Year

FY 25-26

FY 26-27

Milestones 2026-27 Budget Development Process Milestones

1-Sep September 09-Sep

23-Sep

October 14-Oct

28-Oct

November 18-Nov

20-Sep: 2025-26 State Q1 Revenue Forecast

December 09-Dec

January 13-Jan

27-Jan

01-Nov: 2026-27 Governor’s Budget Released

09-Dec: 2025-26 Enrollment Update

07-Jan: Close 2026-27 Open Enrollment

15-Nov: BVSD First Quarter Financials

09-Dec: 2024-25 Financial Audit Update

14-Jan: Convene 2026 CO General Assembly

30-Nov: 2025-26 October Count Finalized

19-Dec: 2025-26 State Q2 Revenue Forecast

15-Jan: Initial 2026-27 Enrollment Projection

Board of Education Meeting

27-Jan: 2026-27 DAC Budget Recommendation

Board of Education Work Session

Stakeholder Input Options: •District Accountability Committee •District Parent Council •Latino Parent Advisory Council •Community Budget Input •School Leadership •Public Comments at BOE Meetings •Staff Communication

Data Input Feedback

27-Jan: Open Enrollment Lottery Results Jan 27: Meeting with Legislative Reps

February 10-Feb

24-Feb

March 10-Mar

April 14-Apr

28-Apr

February - April Staﬃng Allocations 01-Feb: Prior Year Consumer Price Index (CPI) Released

01-Mar: Workers’ Comp Premium Determined

14-Apr: Preliminary Budget to BOE

24-Feb: BOE Budget Work Session

01-Mar: Preliminary Unemployment Expense Estimation

15-Apr: Notice of Probable PARA FTE to be Affected

24-Feb: 2025-26 Mid-Year Financial Review

15-Mar: Notiﬁcation to BVEA of Potential Reduction in Force

28-Feb: Preliminary Health & Dental Insurance Rates

15-Mar: Review / Update Enrollment Projections

30-June May

12-May

June

26-May 09-Jun

23-Jun

13-May: Adjourn CO General Assembly

20-Jun: State 2025-26 Q4 Revenue Forecast

15-May: BVSD Third Quarter Financials

30-Jun: Deadline for 2026-27 Budget Adoption

15-May: Notiﬁcation to all Employees Affected by Reduction in Force 26-May: 2026-27 Proposed Budget to BOE

20-Mar: 2025-26 State Q3 Revenue Forecast

Action

The budget development process spans many months. There are numerous options for input, with relevant data and information coming in up until budget adoption in June.

2026-27 Budget Development Process

September State Revenue Forecast

Last Year

FY 24-25

This Year

FY 25-26

Next Year

FY 26-27

2025-26 September State Revenue Forecast Available General Fund collections data as a share of total ﬁscal year collections* The September forecast is built on only 14% of the available data

Last Year

FY 24-25

This Year

FY 25-26

Next Year

FY 26-27

2025-26 September State Revenue Forecast The upcoming December forecast will have over twice as much data as September and provide a better indication of the state’s ﬁnancial condition

State Budget Setting

The state budget setting in March is built on 62% of the available data

Both the state and BVSD budgets are built with projections containing imperfect and incomplete data. As the timeline progresses, the ﬁscal picture becomes more clear.

Last Year

FY 24-25

This Year

FY 25-26

Next Year

FY 26-27

2025-26 September State Revenue Forecast ● Revenue ○ Signiﬁcant downward revisions in General Fund revenue from changes in federal H.R. 1 place the State below the TABOR cap in FY 2025-26. ○ Surpluses expected to return in FY 2026-27 and FY 2027-28.

● Inﬂation ○ 2025 projected at 2.8% — Up from the June OSPB forecast of 2.3% ○ The Governor’s budget is built on a 2.6% inﬂation rate

● Economy ○ The economic outlook has weakened and a near-term recession is possible 12

Last Year

FY 24-25

This Year

FY 25-26

Next Year

FY 26-27

2025-26 September State Revenue Forecast 2025-26 State Budget Outlook - Oﬃce of the State Controller and Legislative Council Staff

FY 2024-25 collections are preliminary.

Total available state General Fund revenue is ﬂat, while statutory increases in state budget areas, including K-12, are making it very diﬃcult for new programs or moving towards fully funding K-12 to meet educational expectations and mandates.

2026-27 Budget Development Process

Strategic Plan and Budget Development

All Together for All Students No Limits

All students experience grade-level, standards-based instruction.

Next Best Step

Deﬁne the Destination

Included & Valued

Educators and administrators implement & track tiered supports and instructional strategies to engage and grow all students, and monitor success in doing so.

Throughout their PK-12 career, all students access career exploration opportunities and earn at least one of the following: College Credit, Industry Certiﬁcation, Work-Based Learning Experience or Seal of Biliteracy.

All students feel included and valued in their learning environments, schools engage in restorative practices with students when appropriate, and schools consistently apply recommended resolutions for speciﬁc disciplinary events (i.e., discipline framework).

Strategic Investments No Limits

● 7 new standards-based curricula across all instructional levels ● Differentiated funding model to support highest needs students and schools ● Common instructional expectations to ensure consistent academic experiences for students

All students experience grade-level, standards-based instruction.

● Data-Driven Instruction to improve teaching and learning - 3 FTE instructional coaches ● Short cycle improvement planning implemented at all schools - “90-day Plans” 17

Strategic Investments Next Best Step

● Assessment framework and expanded availability of standards-based assessments and expectations for use ● Supports for implementing and monitoring tiered-supports for students - 2 FTE MTSS TOSAs

Educators and administrators implement & track tiered supports and instructional strategies to engage and grow all students, and monitor success in doing so.

● Strategic Plan Support Teams to accelerate the implementation of strategic plan initiatives

Strategic Investments Deﬁne the Destination

● Grad+ Framework - Grad+ TOSAs and CTE FTE at high schools ● Expanded dual-language programming at the middle level ● Expanded concurrent enrollment offerings for college credit

● Expanded career exploration opportunities K-12

Strategic Investments Included & Valued

● Established and implemented the Discipline Framework with State aligned guidance to ensure consistency in discipline practices across BVSD ● Implemented the application of Restorative Practices as an alternative to exclusionary discipline

2026-27 Budget Development Process

Budget Development Outlook & Challenges

Last Year

FY 24-25

This Year

FY 25-26

Next Year

FY 26-27

Governor’s 2026-27 K-12 Budget Request ● 2.6% inﬂation (projected CPI) funding increase ● Statewide enrollment decline of 0.7% (6,002 students) ● $315.6M increase in State Share support for K-12 schools ● Increases state average per pupil funding by $413 ● $14.5M increase for categorical programs

Last Year

FY 24-25

This Year

FY 25-26

Next Year

FY 26-27

Governor’s 2026-27 K-12 Budget Request ● Continues the implementation of the new school ﬁnance act — HB24-1448 ○ Implements 3-year averaging for declining enrollment ○ Implements the Act at the required 30%

● Maintains Budget Stabilization Factor at $0M

Last Year

FY 24-25

This Year

FY 25-26

Next Year

FY 26-27

Joint Budget Committee Brieﬁng - K-12 Finance ● The Governor’s budget request suggests a likely implementation pause in FY 2027-28, cutting $90M. ● “LCS staff is conﬁdent the General Assembly should prepare to implement cost savings measures in FY 2027-28 to reduce the cost of the school ﬁnance formula.” ● LCS economists will provide a detailed school ﬁnance analysis in their FY26 Dec quarterly revenue forecast and the Governor will submit a revised FY26 school funding proposal on Jan. 2nd. 24

Last Year

FY 24-25

This Year

FY 25-26

Next Year

FY 26-27

Joint Budget Committee Brieﬁng - K-12 Finance ● LCS staff identiﬁed two options to cut the school ﬁnance formula ○ Requiring districts to contribute all speciﬁc ownership tax (SOT) to their local share of total program, thereby cutting the state share by $219M. ■ $6M-$7M for BVSD ○ Changing the rate used to fund part-time enrichment students from 0.5 to 0.25 25

By adjusting for 2.6% inﬂation, reducing averaging for declining enrollment districts, implementing the new school ﬁnance act and maintaining the Budget Stabilization Factor at $0, the state is increasing per pupil funding by a greater percentage (3.5%) than total funding (2.7%). Future years indicate funding reductions. 26

Last Year

FY 24-25

This Year

FY 25-26

Next Year

FY 26-27

2026-27 BVSD Budget Pressures ● Legislative Council School Finance Act Projections ○ 337 decline in funded FTE ■ 337 non-charter ■ 0 charter ○ $5.6M total funding growth - +1.8% ■ $4.8M non-charter - +1.7% ■ $0.8M charter - 3.1%

Last Year

FY 24-25

This Year

FY 25-26

Next Year

FY 26-27

2026-27 BVSD Budget Pressures ● Rightsize staﬃng in 2026-27 ○ Staff currently on 1X resources ○ Adjustments for projected declining enrollment

● Limited options for new ongoing expenditures ● Long-term funding concerns relative to declining enrollment and elimination of the Budget Stabilization Factor ● 2026-27 budget focused on continuation of current Strategic Plan priorities 28

Last Year

FY 24-25

This Year

FY 25-26

Next Year

FY 26-27

2026-27 BVSD Budget Pressures

Staﬃng ●

Continued use of 1X funds for staﬃng

●

Employee recruitment and retention in a tight labor market

●

Ineﬃciencies with smaller schools and classes

Enrollment ●

Shifting/declining enrollment patterns

●

Enrolling smaller elementary classes and graduating larger classes

●

Mirroring state and national trends

Inﬂation ●

September 2025 CO CPI forecast at 2.8% - up from 2.3% in June

●

Governor’s 2026-27 Nov 1 budget uses 2.6%

●

Operational costs and continued wage pressures 29

2026-27 Budget Development

Last Year

FY 24-25

This Year

FY 25-26

Next Year

FY 26-27

2026-27 BVSD Budget Development Property Tax and the School Finance Act When inﬂation and pupil count increase less than inﬂation and property values, local share increases and state share decreases as seen in FY 2025-26.

Last Year

FY 24-25

This Year

FY 25-26

Next Year

FY 26-27

2026-27 BVSD Budget Development ● Dec 19, 2025 - 2025-26 Q2 State Revenue Forecast ● Jan/Feb, 2026 - 2025-26 State Supplemental Budget ● Jan 13, 2026 - 2025-26 BVSD Revised Budget Study ● Jan 13, 2026 - 2026-27 Draft Strategic Financial Plan ● Jan 27, 2026 - 2025-26 BVSD Revised Budget Action ● Feb 10, 2026 - 2025-26 BVSD Midyear Analysis ● Apr 14, 2026 - 2026-27 BVSD Preliminary Budget 32

Questions?