Poudre School District unveils proposed 2025–26 budget, sets aside reserve for funding uncertainty

Poudre School District officials presented a proposed fiscal year 2026 budget to the Board of Education, outlining revenue from Colorado’s new school‑finance formula, negotiated compensation increases, and contingency planning for uncertain state and federal funding streams.

Chief Finance Officer Dave Montoya and Superintendent Brian (last name not specified in transcript) highlighted the new school‑finance formula that yields an estimated per‑pupil amount of about $11,248 based on the district’s funded pupil count (a four‑year average). The proposed general‑fund budget plans for compensation increases across employee groups—licensed, classified and administrative—totaling roughly $21.8 million, including a move to a $58,000 base teacher salary for step‑1, column‑1 licensed staff and other negotiated adjustments.

Montoya described net reductions and additions: a reduction in some school‑based and zero‑based budgets, a $700,000 district general‑fund impact related to the Ascent funding change, and a $1.3 million explicit district contribution to early‑childhood non‑federal share that will be placed in the FY26 budget rather than using restricted funds later. The budget anticipates a health‑insurance premium increase of approximately 5% for employer and employee shares.

To manage risk, the proposed budget creates an assigned reserve of about $4.3 million labeled for “funding uncertainty.” Montoya said this reserve is intended to provide agility in the face of uncertain federal and state appropriations (for example, Healthy School Meals for All changes or federal grants such as Head Start). The district’s targeted unassigned contingency remains in the 3–5% policy range; combined with the assigned reserve, available reserves approximate the policy target.

Board members asked clarifying questions about reserve levels, federal funding exposure (federal funds approximate $30 million annually across grants, including IDEA special‑education funds), and next steps. The proposed budget will return for board action on June 10; district staff said audited FY25 results and updated projections will inform final adoption.