In a recent government meeting, officials presented the proposed budget for the 2024-2025 fiscal year, highlighting key financial strategies and challenges facing the district. The presentation, led by Chris Smith, Baranzo Rios, and Jamie Hines, emphasized a 1.4% projected enrollment growth and the opening of two new schools, Freeman High School and Nelson Junior High.

The proposed budget reflects a 7.2% growth in the tax base, with a tax rate set at 0.727, marking a slight reduction from previous years. This follows a trend established since the passage of House Bill 3 in 2019, which has seen the tax rate decrease by $0.40 overall. The budget also includes a 3% salary increase for staff, which accounts for a significant portion of the projected $26.7 million deficit.

Smith noted that the district's funding structure has shifted, with a larger share of revenue now coming from state sources rather than local taxes. He expressed concern that the state's surplus is being used primarily for tax relief rather than direct investment in public education. The budget allocates 82% of its funds to classroom expenses, with 67.6% specifically for instructional-related costs, positioning the district among the highest in the state for classroom spending.

Despite a healthy fund balance of $344.5 million, the budget anticipates a deficit due to increased expenditures, particularly in salaries and benefits, which constitute 89% of the budget. The food service fund also shows a robust balance of $21.6 million, prompting plans to reduce this surplus through strategic spending.

Looking ahead, the district plans to open two additional elementary schools in the next academic year and will closely monitor expenditures to adapt to changing economic conditions. The upcoming legislative session in January is expected to address the state surplus, with hopes that new funding could alleviate some of the projected deficits.

Trustees expressed optimism about the budget's potential, noting that previous projections indicated a better-than-expected financial outcome for the current fiscal year. The board is set to adopt the budget in the coming week, with ongoing discussions about necessary amendments as the year progresses.