It’s hard to believe over a third of the Legislative session is already over (who’s counting?!). With the 75th General Assembly now in full swing and nearly 450 bills introduced, our team is keeping you informed on the major legislative developments that impact charter schools. 

Colorado Faces Serious Budget Challenges

Colorado’s budget crisis continues to deepen. 

A report last week revealed that the state must cut $1.1 billion to balance next year’s budget, with potential deficits extending through 2029-2030. 

These financial challenges could have a significant impact across K-12 education, including the charter sector.

First, there is growing debate over whether the new funding formula passed last year can be implemented as planned. Currently, the formula is set to phase in over the next six years, with an annual investment of approximately $90 million. However, budget writers at the Capitol are expressing concerns about whether this timeline is financially feasible.

Second, proposed adjustments to the BEST program are under consideration. The Governor’s budget plan – which is tied into full implementation of the new funding formula as originally planned – includes transferring a portion of BEST funding to the State Public School Fund, which covers a significant share of the state’s annual education spending.

Finally, a heated debate is underway regarding how school districts are funded. As mentioned in our last update, Colorado previously calculated district funding using a five-year average of student enrollment, which was then reduced to a four-year average last year. Now, Governor Polis has proposed eliminating enrollment averaging altogether, shifting to a model that funds schools based solely on their current-year enrollment.

The League is actively engaged in discussions with legislative leadership and the Governor’s office to ensure that charter school interests are protected in each of these budget debates. If cuts prove necessary, we will be fighting to ensure charter schools do not bear a disproportionate share compared to their traditional school counterparts.

Proactive policies

As members know, the League is not only monitoring legislation to safeguard our schools but also actively advancing proactive policies. We are currently

pursuing three distinct policy initiatives. However, given the ongoing budget uncertainty, any proposal with a financial impact will face significant challenges in the legislative process.

1. Increase in the Moral Obligation Cap: The Moral Obligation Program is reaching its limit, and we are working with the Treasurer’s Office to see if the cap can be increased so that more charter schools can continue to have access to the lower-interest financing that this program provides.
2. Freeing up time for our schools: A bipartisan bill we helped draft will require the Colorado Department of Education to audit its data reporting requirements for schools. Additionally, it will allow most schools to use their own templates for Unified Improvement Planning, reducing administrative burden and saving valuable time for school leaders. 
3. Strengthening our Alternative Education Campuses: Given the disproportionate percentage of Colorado Alternative Education Campuses (AECs) that are charter schools, we are leading on an initiative to ensure AECs receive greater support in areas ranging from student counts to grant access. 

Additionally, as many of you are aware, PERA came out with guidance last year stating that substitute teachers hired by third-party contractors must be PERA members, creating additional hiring challenges for many of our schools. In response, the League has filed an amicus brief in support of an appeal of this decision in Denver District Court. We will continue to provide updates as the case progresses through the legal system.

Increasing Volume of Education Bills

New education bills are being introduced daily. To keep you informed, we will provide continuous updates to the Bill Tracker. Many of these bills are now being scheduled for hearings, so be sure to check the tracker regularly for the latest developments.

Monitoring Legislation:

In addition to the bills mentioned above, we have our eyes on several other bills that we have actively engaged on: 

Communication Devices in Schools: HB 1135 initially required every school board to establish a district-wide cell phone policy that all schools under its jurisdiction must follow. Through our advocacy, we successfully added an amendment allowing local charter school boards to create their own policies separate from the local district board. The bill’s sponsors supported this amendment, and we are actively monitoring the legislation to ensure it remains intact.

Library Resource Decision Standards for Public Schools: Similar to the cell phone policy bill, this bill initially established a statewide process for the removal of library resources. It was later amended to grant local school boards the authority to make those decisions. With our advocacy, an additional amendment now ensures that local charter schools have the same autonomy in managing their library resources.

Financial Literacy Graduation Requirement: This bill adds successful completion of a financial literacy course to the requirements for high school graduation and requires students to complete the FAFSA unless an exemption is granted.

Stay Engaged:

Legislative Lunches: In addition to the Bill Tracker, we have our legislative lunches from 12:00 to 12:30, an informal conversation where members get to hear the latest news in an informal manner, including time for questions and answers from members. February 28th Legislative Lunch is canceled.

Legislative Updates: Stay informed with our regular email updates throughout the legislative calendar. 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. 

Sincerely,

The League’s Policy and Advocacy Team