Polis Final Budget Adds School Funds

Gov. Jared Polis released his eighth and final state budget proposal on Monday, directing an additional $212.1 million toward K-12 schools. This allocation would bring total statewide spending for these institutions to approximately $10.4 billion.

The plan raises per-pupil funding to $12,814, an increase of $488 compared to the current fiscal year. The governor stated that this spending keeps the state's seven-year school funding formula implementation on schedule. The proposal includes 45% of the $500 million required to update the formula, which distributes money based on student demographics and needs.

State law requires the governor to submit a budget proposal by the start of November. The Joint Budget Committee typically uses this draft as a foundation for its own spending plan during the legislative session, which begins in January. However, the political context for this proposal shifts on Tuesday, when Colorado voters will elect a new governor. The incoming executive will bring their own priorities to the table, potentially altering the trajectory of the state's finances.

The final days of Polis's tenure are defined by a more than $1 billion budget deficit for the third consecutive year. This shortfall makes the 14 ballot measures on Tuesday's election particularly consequential. Proposition NN and Amendment 87 both seek to increase state funding for education. The outcome of these votes will directly impact the budget projections that the legislature must address.

The proposal also allocates $7.3 million to universal preschool, a signature initiative of the current administration. Polis proposed increasing gaming and nicotine taxes to generate additional revenue for this program. Furthermore, the budget includes $1.2 million to extend the Colorado Adult High School Grant Program for adults aged 21 and older, and $3.5 million to extend state grants for afterschool and summer programming for three more years.

In the higher education sector, the plan sets aside $4.7 million to establish the Colorado Department of Higher Education and Workforce Development. The budget allows colleges and universities to raise in-state tuition by 3% and nonresident tuition by 4%. Polis also continued his effort to privatize Pinnacol Assurance, a state-chartered mutual company. He proposed earmarking about $100 million from the sale to create a trust fund for the Colorado Child Care Assistance Program, aiming to expand access to childcare subsidies.

The Joint Budget Committee will now review this document as it prepares for the legislative session. The specific numbers in this proposal will serve as a baseline for negotiations, but the final spending levels will depend heavily on the results of Tuesday's election and the priorities of the incoming governor.