Poudre School District warns of steep budget shortfall, outlines possible staff reductions

Poudre School District R‑1 officials told the Board of Education on Feb. 10 that a combination of declining enrollment and uncertainty in state and federal funding could force multimillion‑dollar budget reductions and possible staffing cuts.

Chief Finance Officer Dave Montoya said district projections finalized Jan. 30 show “we are currently estimated to decline another 654 students,” a loss that, when combined with the statutory inflation increase in the school finance formula, largely offsets expected new revenue. Montoya warned that additional state proposals under discussion could deepen the impact, and staff estimated a plausible range of $8 million to $17 million in general‑fund reductions depending on legislative outcomes.

Dr. Lauren Hooten, chief of staff, said the administration is preparing to follow Article 14 of the employee agreement if reductions become necessary. “This does not mean that a reduction in force will happen,” Hooten said, but she outlined required timelines, seniority and endorsement lists, and a RIF committee (three administrators and three licensed staff) that would review placements and recommend actions to the superintendent and board.

Board members were briefed on the district’s fund‑balance policy (DBAA) and reserve thresholds; Montoya said reserves have eroded and that falling below the board’s 3% minimum would require immediate reductions. He reminded the board of prior experience during the Great Recession when roughly $12 million in cuts required eliminating positions.

Directors pressed staff for specificity about which programs are essential to preserve if cuts are required. Superintendent Brian Kingsley and the cabinet framed a set of “core universal” investments — such as curriculum and tier‑1 literacy work — that they said produced measurable student gains and should be prioritized. Montoya and Hooten said the district will present recommended contract cancellations if necessary at an April board meeting, with any final actions required before statutory staffing deadlines in June.

Several board members urged transparency and compassion in communications to employees and the public. Director comments emphasized advance notice, community engagement and exploring every legislative and local option to reduce the scale of cuts.

Next steps: the board signaled support for administration to draft a resolution authorizing the RIF process if required and to return with specific recommendations in April, recognizing that precise numbers may shift as the state legislative session proceeds.