Greetings, 

We’re now entering the final three weeks of the legislative session, and major decisions are on the horizon. In this update, we break down the latest on the state budget and School Finance Act, plus share progress on several high-impact bills. The good news: Despite a challenging budget environment and complex political dynamics, we believe charter schools are in a strong position as we near the end of the 2025 legislative session. 

Budget Update:

While the budget has passed both the House and Senate, the process isn’t over just yet. Because each chamber adopted different amendments, those differences must now be reconciled. Once a final version is agreed upon, it will need to pass both chambers again before heading to the Governor for a signature. However, we have some good news to report: 

1. Increased Funding for K-12 Education: The budget would increase funding for K-12 education to nearly $10 billion next year. How that money is distributed depends on the School Finance Act (see below). 
2. CSI Mill Levy Equalization: The state budget fully funds the CSI Mill Levy Equalization Fund, continuing Colorado’s commitment to funding all schools equitably. In a budget year where there was a nearly $1.2 billion shortfall, we increased CSI mill levy equalization by over $5 million, a remarkable feat. This means students in CSI charter schools will receive comparable mill levy funding to their peers in district schools. 
3. Charter Capital Construction: Although the state contribution will be slightly reduced next year, we remain on track to receive the entirety of our federal match. Taken together, charter schools in Colorado will secure nearly $100 million from state and federal sources for capital construction dollars over the next five years. 

The School Finance Act:

The School Finance Act passed the House Education Committee unanimously last week and passed House Appropriations 8-3 yesterday. As currently drafted, the School Finance Act will increase the statewide average PPR by over $400 per student (3.6%) in the 25-26 school year, adding $256.7 million more in education funding than what was allocated last year. 

Notably, two amendments the League advocated for have been included in the School Finance Act: 

1. Restoring the At-Risk Supplemental: The entire $7 million, which was cut by the Joint Budget Committee, has been restored via an amendment to the School Finance Act. The funding will still be phased out over the next two years as the new funding formula takes effect, but we won a more gradual step down. 

2. Increasing the Cap on the Moral Obligation Program: An additional amendment to the School Finance Act would increase the cap on the Moral Obligation Program—which helps charter schools access low-interest bonds for facilities—by $250 million, bringing the total to $1 billion. This expansion would open the door for more charter schools to finance facilities sustainably and affordably.

   

Sometimes, just as important as the things that do happen are those that don’t. For example, we did not see anything resembling last year’s HB 1363 or bills to limit the expansion of CSI schools. Other ideas, such as a proposal to cut funding for part-time enrichment programs in half, never even made it to the drafting stage. 

These wins didn’t happen by accident—they’re the result of relentless advocacy and strong, trusted relationships we maintain with the Governor, Senate President, Speaker of the House, and lawmakers across the political spectrum. Throughout the session, our north star has been the 2025 Legislative Agenda, and our team has worked with purpose and urgency to advance the bold objectives we set at the start of the year. We're proud to say we're delivering on those objectives.

Other bills we are monitoring: 

Data Reporting Requirements: A bipartisan bill we drafted passed the legislature unanimously and is now awaiting the Governor’s signature. While our original goal was a more comprehensive overhaul, the state’s current fiscal constraints made that unfeasible. Still, we achieved meaningful progress by cutting red tape—schools will now be allowed to use their own templates for portions of the Unified Improvement Plan process. Next year, we intend to go further by repealing additional costly and unnecessary regulations. 

Invest State Funds to Benefit Communities:  This bill strengthens the Public School Permanent Fund (PSPF) and creates the Educator-First Home Ownership Program, a groundbreaking initiative that offers down payment assistance and supports housing development specifically for Colorado’s teachers and public school staff, including those in charter schools. The League is proud to support this effort to help educators live in the communities they serve—and we worked hard to ensure that charter school educators are fully included in this opportunity. 

Communication Devices in Schools: This bill has passed both chambers and is awaiting the Governor’s signature. The League introduced an amendment that would allow charter school boards as well as local school boards to create a policy regarding cell phones, which has been adopted. 

There have been over 600 bills introduced this session. To keep you informed, we continue to provide regular updates to the Bill Tracker. 

Federal Developments: 

We are closely monitoring federal developments that could impact charter schools, including cuts to the Department of Education, the Supreme Court case on religious charter schools, and changes to Title IX regulations. Some of these issues have direct implications for charter schools in Colorado, and to keep our community informed, we are working with an attorney who has prepared a series of briefs outlining the potential effects. You can find them here. 

As new developments arise, we will continue to provide additional briefs and updates. 

Stay Engaged:

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. Access past newsletters here. 

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

Sincerely,
The League’s Policy and Advocacy Team