Declining enrollment drives budget reductions

Adams 12 Five Star Schools saw enrollment for the current school year decline by 1,365 students. That’s the second-highest decline since 2020, the beginning of the pandemic. Since 2018, enrollment in district-managed schools has declined by more than 6,000 students. The primary factor driving lower enrollment in districts across Colorado and the nation is a low year-over-year birth rate.

Given that school districts are primarily funded based on the number of students enrolled, the district needs to right-size its budget to reflect those declines. Educating children is a people-intensive endeavor with 89 percent of the district General Fund supporting salaries and benefits. As enrollment declines, staffing levels need to adjust.

Currently, the budget plan for 2026-2027 calls for $8.6 million in ongoing reductions. These reductions include:

• Fewer elementary classes and teachers due to fewer students
• Fewer specialized positions, such as academic interventionists and multilingual teachers due to declining enrollment
• Fewer classroom teachers at the secondary level (grades 6-12) due to fewer students
• Fewer district support staff across departments as enrollment declines

Many school-based staffing reductions are anticipated to be covered through retirements or staff leaving current positions for other opportunities or personal circumstances.

It’s important to note that the Legislature has not introduced the state’s budget for next fiscal year, including the dollars school districts will receive. Lawmakers will use the March state economic forecast to finalize the budget. Read more about the state budget process. 

What impact does the mill levy override have on budget planning for the 2026-2027 school year?

As of now, the district is expected to receive $1.5 million less revenue from the state for 2026-2027 than it did for this school year, despite increasing costs. For example, the district is estimating a 15 percent increase in cost for its share of employee health insurance.

While the mill levy override will help mitigate the lack of funding from the state and allow the district to remain competitive in recruiting and retaining world class staff, in many areas the district needs to right size its resources to reflect the declining enrollment it is experiencing. Over the past several years, our district has experienced steady enrollment declines. Right-sizing is not about reducing opportunity; it’s about ensuring we can continue delivering high-quality education in a financially sustainable way. 

Read more about what the mill levy override is funding.