The Final Stretch

Dear Melia,

With just a few weeks remaining in the legislative session, we wanted to share a timely snapshot of where things stand as key decisions come into focus: the state budget is nearing finalization, the School Finance Act has cleared its first committee, and our charter bond inclusion bill continues to build strong momentum in the legislature.

State Budget: 

The $46.8 billion state budget is nearing finalization after passing the Senate last week, following earlier approval in the House. As a reminder, lawmakers were forced to close a $1.2 billion deficit, doing so through a combination of drawing down the state reserve, significant Medicaid reductions, and more than $570 million in cuts across state departments and existing programs.

Despite this challenging fiscal environment, there are several important wins for the charter sector: Overall K–12 funding is set to increase, CSI Mill Levy Equalization received additional investment, and proposed cuts to charter capital construction were successfully prevented.

School Finance Act: 

Introduced as SB26-032, this year’s School Finance Act would, encouragingly, increase total program by $192M next year over FY26 levels. This investment enables the state to continue forward with a 30% phase-in of the new funding formula, and it increases the statewide average PPR next year to an estimated $12,314 per student (3.7% change, $438 per-student increase).

What remains to be determined, however, is how exactly this impacts charter schools. As you know, conversations have been continuing around how the new funding formula should apply in the charter context. Given its alignment with charter principles (backpack funding, money tied to students over systems), we’re headed to a place where each individual charter’s funding is ultimately based on the new formula, but how we get there matters. 

We’ve consistently been advocating that the same transition mechanisms districts negotiated for themselves (greater of either new formula – whatever percentage of it is being implemented in a given year – or some form of hold harmless) should apply to each individual charter throughout the years until the new formula is fully implemented. But it’s not entirely clear yet where negotiations related to this transition will land.

Consistent with our prior messaging on this topic, schools are still encouraged to continue budgeting conservatively and planning for a world where their ultimate funding is based on the new funding formula until this gets fully resolved. We know time is of the essence, and we’ll be sure to keep you posted as soon as we know more in the coming days.

Bond Equity Bill: 

Last week, SB26-145 passed the Senate with an overwhelming, bipartisan 34–1 vote. It now heads to the House Education Committee, where it could be heard as early as next week. If enacted, the bill will create a more inclusive and transparent process for how districts include charters in future bond measures.

Part-Time Enrichment: 

We have successfully protected the part-time enrichment program from cuts in both the budget and the School Finance Act, though there is still time for the legislature to act. The program remains at risk, with the legislature still considering changes, including a potential blanket reduction from 0.5 to 0.25 PPR. The League has consistently advocated for a path that ensures high-quality providers can continue to receive full 0.5 funding.

Stay Engaged: 

Our strength comes from the ongoing, active engagement of our members.

Legislative Lunches: In addition to the Bill Tracker, we have our legislative lunches from 12:00 to 12:30 each Friday during the session, an informal conversation where members get to hear the latest news from the Capitol, along with time for questions and answers. Sign up here. 

Legislative Updates: Stay informed with our regular email updates throughout the legislative calendar. Sign up here or access past newsletters here. 

Direct Contact: Have questions, ideas, or feedback? Reach out to our advocacy team or contact Prateek at [email protected] or text Prateek at (720) 440-1160.

The League Advocacy Team
Prateek, Kyle, and Anne