Telluride schools warn county commissioners of up to $3.5–$4 million funding hit from new state formula

Superintendent John Pandolfo told the San Miguel County Board of County Commissioners on Feb. 26 that changes to Colorado’s school funding formula enacted in HB 24‑1448 and additional state actions being discussed this spring could reduce the Telluride School District’s revenue by ‘‘between $3,500,000 and $4,000,000’’ of the district’s roughly $17–$18 million total budget.

Pandolfo, speaking during the meeting’s public-comment period, said the recently enacted law capped the district’s cost-of-living factor at 1.23 (down from 1.595 under the prior formula) and inserted a locale factor based on National Center for Education Statistics classifications that reclassified Telluride from a ‘‘rural’’ locale to a ‘‘town’’ designation after the town’s population was recorded at 2,522. He said those two changes together are projected to lower the district’s “total program funding” by about $1 million each from a starting point of approximately $13 million under the formula. Pandolfo also said a governor-proposed change to move to a single-year funded-student count (instead of multi-year averaging) could add a further $1 million-plus cut if implemented immediately.

Why it matters: Pandolfo said the district’s local 30% mill-levy override is calculated as a percentage of total program funding, so any reduction in total program funding would reduce the district’s capacity to collect local override revenue and magnify the budget impact. He told commissioners the combined effect, if protections are removed, could total $3.5–$4 million of lost funding in the district’s $17–$18 million budget.

Commissioners responded that the county could add its voice to district advocacy. Commissioner Lance Waring asked whether the district was asking the county to take specific action; Pandolfo said the district would welcome commissioners’ advocacy with state legislators and that district board members were already meeting with representatives in Denver. Commissioners agreed to add the topic to the March 5 agenda and discussed the potential for a joint letter between the county and the two towns (Telluride and Mountain Village). County attorney Maura Fahey advised placing the item on a future agenda before taking formal joint action.

Background and next steps: Pandolfo said a five-year ‘‘hold harmless’’ provision in HB 24‑1448 now protects districts from immediate impact, but state budget shortfalls have prompted discussion of removing or limiting that protection. He said Telluride’s local board is seeking to make the community and elected leaders aware and to pursue advocacy in Denver. Commissioners asked the district to return with a draft letter to consider for signature and to provide more detail at the March 5 meeting.

Officials and attendees: Pandolfo read prepared remarks and provided a hard copy to the county; commissioners present and discussing next steps included Chair Anne Brown, Commissioner Lance Waring and Commissioner Galena Gleason.

Ending: Commissioners directed staff to add the item to a future agenda and to coordinate with the district on timing and a draft letter for possible joint jurisdictional advocacy on state funding changes.