Greeley School District 6 faces $10–12 million budget gap as new school-finance formula phases in

GREELEY, Colo. — The Greeley School District No. 6 board heard a budget briefing at its work session in which CFO Megan Sponsler said the district expects per-pupil funding under the proposed School Finance Act to be $12,174 on average but still faces a multi‑million-dollar shortfall once rising costs are accounted for.

Sponsler told the board that the new funding formula (enacted as House Bill 1448 last year and described in the briefing as the School Finance Act/Senate Bill 23) sets a base amount the district projects at $8,909 per pupil and projects total per-pupil funding — after additions for students who are English-language learners, special education and at-risk — at $12,174. She said extended-high-school and multi-district online students have a separate statutory rate of $10,007.21.

The nut of the district’s problem, Sponsler said, is that while total revenue tied to the School Finance Act is expected to rise from about $260,800,000 this year to roughly $268,800,000 next year (an increase of about $8 million), charter passthroughs reduce that gain, leaving about $5.5 million in new discretionary money for the district.

At the same time, Sponsler listed large cost pressures: a reported $4.4 million increase in health insurance, a roughly $3 million certificate‑of‑participation (COP) payment, a planned $3 million IT refresh (Chromebooks, laptops, smart boards) and approximately $500,000 needed to continue positions that had been grant-funded (notably social workers). She summarized the combined range of expense increases at about $14.9 million to $18.4 million, leaving the district to identify roughly $10 million to $12 million in additional reductions or to draw on reserves.

"We have 260,800,000 coming in through the School Finance Act this year; for next year, we are expecting 268,800,000," Sponsler said during the presentation. "That leaves about 5,500,000 of new money for us to spend. So that's good news. Right? It is good, but we also are experiencing expenses going up much faster than revenue coming in." (Attribution: CFO Megan Sponsler.)

Board members and district leaders said some measures already are underway: staffing was "right-sized" to current enrollment, and some central administrative positions are being eliminated. The district also plans to work department by department to identify further reductions. Sponsler said the district may recommend using some fund-balance dollars for one-time needs such as the health-insurance spike.

Directors pressed for detail on how compensation changes would affect employees. Sponsler said the budget line for step and lane increases (experience and education-related raises) is substantial — the cost of a step was estimated in discussion at roughly $2.5 million to $3 million, and comparable adjustments for classified and administrative employees were estimated at about $1.5 million.

Superintendent Dr. Pilch and board members emphasized an attempt to protect early-grade class sizes where possible and to weigh tradeoffs between classroom staffing and supports such as social workers and counselors. "We always try to keep K–3 class sizes more manageable," Sponsler said; district staff described such protections as a priority when making section- and staffing decisions.

The district is also monitoring state-level developments that could affect revenue. Board discussion referenced two prospective statewide ballot measures and other legislative changes that could alter the long-term funding picture.

Next steps: the compensation committee and negotiations will continue this spring; district leaders said they hope to present negotiated terms to staff for ratification before the May board meeting and return a budget for formal consideration in June. Staff also said cabinet will meet immediately following the session to continue identifying savings.

The board did not take any formal votes during the work session; members described the presentation as an early-stage, informative briefing that will guide decisions this spring. (Attribution: multiple board members and district staff.)

Ending — The board thanked staff for the presentation and for the clarity of the materials; President Masch adjourned the work session after directors reiterated concern about the district’s need to find roughly $10–$12 million in offsets for next year.