Prosperity Denver Fund reports growth, outlines fund balance and reauthorization planning

Prosperity Denver Fund told the Denver City Council Health & Safety Committee that it has rapidly expanded distributions and partner work since its program expansion in 2023, and that its board is planning for reauthorization ahead of a statutory sunset.

Rebecca Arnault, chief executive of Prosperity Denver Fund, said the fund "maximizes the investment of Denver taxpayers to support nonprofits that help students with financial need pursue college and career opportunities." Arnault told the committee the fund operates three programs — college and technical school scholarships; career training, credentials and apprenticeships; and high school support services — funded by a 0.08% slice of Denver sales tax.

The fund has worked with 89 partner organizations and reported more than 15,000 scholarships, about 1,100 credential awards and services reaching roughly 47,000 high-school-aged students. Arnault said cumulative distributions total about $65,000,000 since the fund began in 2019, and that the fund distributed $16.3 million in 2023–24 and $16.6 million in the first 24–25 funding cycle.

On program shifts, Arnault said college scholarships rose about 12% year-over-year and credentials and apprenticeships climbed roughly 86%, driven in part by a partnership with Emily Griffith; high school support services were down about 26% because the board applied a 20% cap of annual revenue to that program.

The board has set aside a commitment reserve to ensure students who start college with fund support can complete their programs if the initiative sunsets. Arnault said the fund balance was "just shy of $30,000,000" in 2024, with $2.6 million spent in the prior year and projections indicating the balance could be fully expended by September 2027 absent reauthorization or policy changes.

Board chair Teresa Pena said she and staff are already preparing for reauthorization work well before 2030. Pena said she will roll off the board and a successor will chair a separate reauthorization committee; she indicated the group intends to gather data and make the case to Denver voters or, where possible, pursue council-based remedies depending on legal advice.

Council members asked for program detail and legal context. Paul Cashman asked about the high school support services and Arnault explained funded organizations must address at least three of five focus areas she listed: mentorship, financial-aid assistance (including FAFSA support), trade-pathway exploration, family engagement, and academic-completion supports; mental-health services are included among those supports. Arnault said about $15,000,000 in sales-tax revenue flows to the fund each year and that the high-school allocation at the 20% cap equates to roughly $3,000,000 annually.

Council President Rotem Romero Campbell asked whether reauthorization must go back to voters or could be handled by ordinance, citing Denver Preschool Program precedent. Arnault and board members said they would consult the city attorney and other legal resources before choosing a reauthorization path and pledged to "exhaust every single resource" and coordinate with existing expertise and counsel.

The fund told the committee it will prioritize expanding partner capacity to measure outcomes, including funded evaluation cohorts and an RFP for an economic impact study expected by summer, to better document student wage outcomes and program effectiveness.

The board plans to continue regular district-level outreach with council offices, provide communication materials for newsletters, and report results to council in future briefings.

The committee heard the briefing and moved to the next item; no formal motion or vote on Prosperity Denver Fund matters was recorded at this meeting.