House Education panel advances School Finance Act to phase in new funding formula, shields districts from cuts

The Colorado House Education Committee on Tuesday advanced House Bill 13‑20, the School Finance Act, setting a phased pathway to implement the new school funding formula that the legislature approved last year. Sponsors said the bill will direct roughly $256 million in new funding to K‑12 schools for the 2025‑26 budget year and will ensure no district receives a cut next year despite a statewide budget shortfall.

Why it matters: HB13‑20 starts the multi‑year transition to the student‑centered funding model created in last year’s HB14‑48. The change shifts more dollars toward students with the greatest needs — those living in poverty, English learners and students with disabilities — and alters how districts’ per‑pupil funding is calculated. Sponsors and district leaders said the bill balances moving toward equity while protecting districts from abrupt funding losses during a period of fiscal uncertainty.

Sponsors and main provisions Representative Lukens, a co‑prime sponsor, told the committee that “13‑20 delivers on constitutional promises to fund public education and adjust base funding to account for inflation,” and described the bill as a measured step that “sets a new statewide base per pupil funding for the 2025‑26 budget year at $8,691.” Lukens and co‑sponsors said the bill funds a $256 million increase overall, with $150 million coming from general fund and the remainder from the State Education Fund; sponsors noted the general‑fund contribution this year is roughly $70 million less than what the state has typically contributed in prior years.

The bill keeps four‑year enrollment averaging for the 2025‑26 year and moves to three‑year averaging in later years only if implementation milestones are met. Sponsors described a seven‑year, phased implementation of the new formula (revising earlier six‑year timelines), and said the bill includes reporting and economic safeguards that would allow the legislature to slow or pause implementation if state revenues fall sharply.

How it affects districts and students Committee testimony from superintendents and district financial officers underscored two themes: districts that concentrate high‑need students will receive more funding under the new formula, and smaller or…