2026 School Finance Act Passes House

DENVER, CO — The House today passed the 2026 School Finance Act. SB26-023 will drive $180 million more to Colorado’s K-12 public schools for the 2026-27 school year.

“The 2026 School Finance Act, which makes meaningful investments in K-12 education and keeps the student-centered formula in place, is now one step closer to becoming law,” said Rep. Emily Sirota, D-Denver. “We were forced to make painful decisions because of Colorado’s budget deficit. However, we were able to protect core education funding. Over the years, we’ve taken bold action to drive more dollars to our public schools, and I’m deeply proud of that work. This year’s school finance act builds upon Colorado Democrats' mission to fully fund our schools, increase teacher pay and set our students up for a lifetime of success.” 

“As any teacher will tell you, fully funded schools make all the difference to our students, and I’m thrilled to help deliver record funding to K-12 education with the 2026 School Finance Act,” said Rep. Meghan Lukens, D-Steamboat Springs. “Despite budgetary constraints, we still delivered record investments in K-12 education and increased per-pupil funding. The 2026 School Finance Act boosts per-pupil funding by $449, bringing the total per-pupil funding to $12,325. There is more work to be done to fully fund our schools, but this year’s school finance act is an important step in the right direction.”

SB26-023 sets statewide per-pupil funding at $12,325 for fiscal year 2026-2027, an increase of $449 compared to FY 2025-2026 funding levels, bringing total K-12 funding for the upcoming fiscal year to $10.178 billion and increasing total program funding by $180.79 million. SB26-023 passed the House by a vote of 57-8.

The General Fund contribution to K-12 education is increasing significantly thanks to the Kids Matter Fund created by Democrats last year, which is forecast to invest more than $216 million in Colorado’s schools next year. 

SB26-023 continues on the path established last year that implements the new school finance formula (HB24-1448) at 30 percent with a three-year averaging model to help stabilize school funding in a declining-enrollment environment. This follows requirements in last year’s School Finance Act that phased in the implementation of the new school funding formula at 15 percent per year for six years, and then 10 percent for the final seventh year of implementation. 

HB24-1448 created a more student-centered formula designed to drive more resources to rural and underserved districts, as well as students living with a disability, at-risk students and English Language Learners (ELLs). 

This year, Democrats also increased funding by $14 million to continue free preschool access for all Colorado kids and increased funding by $38 million to implement the voter-approved Proposition MM to preserve access to free school meals for students. Since the 2020-2021 academic year, Democrats have increased total program funding from $7.2 billion to $10.2 billion for the upcoming year despite a declining enrollment environment. Per-pupil funding has increased from $8,100 to $12,300 in that time as well.