Senate Passes Public School Finance Act Unanimously!

Bill restores cuts to vital programs; provides additional support for low-income students, English-language learners

DENVER, CO – The Colorado Senate today unanimously passed SB21-268, a bill that would reverse major cuts to education funding made last year due to the COVID-19 public health crisis and restore critical funding to a variety of educational programs. The bill, sponsored by Senator Rachel Zenzinger, also includes an additional $77 million to help Colorado students most affected by the pandemic. 

“Our students have experienced one of the most difficult periods of their lives over the last year as their school work has been disrupted and they have had to transition to remote forms of learning,” said Senator Rachel Zenzinger (D-Arvada), who also chairs the Senate Education Committee. “As we rebuild in a way that makes our school system stronger, we need to focus on lifting up our students, especially those most vulnerable. This year’s School Finance Act restores cuts made last year due to the pandemic, and it distributes additional money to provide students with the best educational experience in this environment.” 

The Legislature has already passed a $34.1 billion state budget with $7.8 billion in spending on K-12 education, which represents an 8.7% increase over the 2020-21 school year. The School Finance Act is a separate piece of legislation that explains how the money for education in the state budget will be distributed to schools, among many other provisions. 

The school finance formula starts with a base of $7,225 per student for next year, which represents a 2% increase. The average per-pupil spending for the 2021-22 budget, however, will be closer to $8,857, which is a 9.7% increase, due to the additional increase of funding included for at-risk students. 

Applying funding to reduce the budget stabilization factor is currently the most equitable way to help steer resources toward students in every classroom. Last year, lawmakers increased the budget stabilization factor by $601.1 million from $572.4 million, taking us up to a record $1.7 billion. Senate Bill 21-268 will restore the budget stabilization factor to pre-pandemic levels. 

In addition, the bill restores funding to a variety of grant programs that were cut last year due to the pandemic, such as money for dropout prevention programs and others that help increase enrollment in advanced coursework. The bill also increases funding for the Charter School Equalization Fund, the Local Accountability System Grant program, and the Counselor Corps Grant Program. 

SB21-268 now moves to the House for further consideration. Track the progress of the bill here.