District 49 projects higher student counts but shortfall, to use $9 million of reserves

Rebecca Brooks, presenting the student count and budget update to the El Paso County Colorado School District 49 Board of Education on Aug. 27, said the district’s per-pupil revenue assumption and fund-balance figures have changed and that those updates will factor into the midyear amended budget.

Brooks said, “We built our budget off of $11,185 per pupil based on the school finance act spread amended budget. So it's actually 11,178 per student,” and that the district has already planned to spend $9,000,000 of its fund balance for 2025–26. She told the board the district now expects a 2024–25 ending fund balance closer to $17,200,000, down from a prior projection of $22,800,000, and that this will be the beginning fund balance for 2025–26.

The presentation showed district-operated student counts trending above the budget line in the early weeks of the school year. Brooks explained the charting conventions and projection method: solid lines indicate actual counts, dotted lines are projections and the projections are based on a three-year historical average. She emphasized that the district-operated portfolio figure excludes charter schools and BOCES and that much of the extra revenue tied to higher counts will “pass through” to charters or BOCES rather than remain at the district level.

Brooks also called attention to a staffing assumption change: the district changed a prior personnel-expenditure assumption from 97% to 98% of positions filled. She said the district is “at an all time high for a percentage” of staffing and that the 98% assumption will be handled in the midyear budget amendment.

Brooks warned of external uncertainty at the state level: she summarized recent reporting that Colorado’s special legislative session reduced an initial $1.2 billion shortfall estimate to about $800 million and that Governor Polis has authority to make cuts. “A rescission is unlikely, but it's always possible,” she said.

Brooks combined these items into a warning about structural budget pressure: using the district’s planned $9,000,000 of fund balance and current expenditure plans, she said it would take 13,187 students “just to cover the expenditures we already have budgeted,” while district projections for the year stand at 12,517.

Board members asked for clarifications about charts and trends. Director Hile asked why some trend lines dip near the end of the year; Brooks responded that the dotted projections are a three‑year average and that the late-year dip reflects historically funded-count adjustments. Board discussion also clarified that charter count data are sometimes provided directly to the district and that not all charters are on the district’s student information system.

Brooks concluded that while projections currently show district-operated counts above the budgeted line overall, most of the apparent revenue increase will be passed through to charter schools or BOCES and therefore will not fully offset the district’s planned usage of fund balance.

The board did not take a formal vote on the budget presentation at this work session; members requested further detail for the midyear amendment and directed staff to bring follow-up data to future meetings.