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OCN > 2603 > Lewis-Palmer D38 Board of Education, Feb. 10 – Board discusses possible adjustments in light of state budget crunch

Lewis-Palmer D38 Board of Education, Feb. 10 – Board discusses possible adjustments in light of state budget crunch

Highlights

  • The district faces potential impacts from a state budget shortfall, with education likely affected as Colorado prioritizes healthcare and must balance budgets under TABOR limits.
  • Key proposed reductions include cutting capital investment funding from $3 million to $2.5 million, eliminating new hiring bonuses, and delaying or rethinking a self-funded health insurance option for the future.
  • Funding changes may rely more on student counts, which are projected to decline by about 99 students next year, and districts may need more staffing flexibility across schools.
  • Universal Pre-K is currently a break-even program, and changes in per-pupil funding rules may accelerate fiscal effects due to declining enrollment and mobile student populations in D38.
  • The Parent and Community Advisory Committee highlighted a need for clearer communication with the board, outlined its shift to interactive discussions, and emphasized reporting back to school advisory committees.
  • The main takeaway for listeners: the district is actively planning for tighter funding but awaits more solid-state guidance in coming months, with ongoing efforts to align staffing, compensation, and communication to mitigate impacts.

By Harriet Halbig

The Lewis-Palmer D38 Board of Education received a detailed report from Chief Business Officer Brett Ridgway regarding the possible impacts on the district from a shortfall in the state budget. The Parent and Community Advisory Committee (PCAC) presented information on its activities and suggestions on improving communications with the board.

District budget planning discussion

Ridgway explained the current state of the Colorado budget and the impact going forward.

The state is facing a large shortfall in its budget due to increased spending on healthcare. Colorado is required by law to have a balanced budget each year, further limited by TABOR requirements that the state retain a specific level of reserves.

Education is second only to healthcare in its share of state budget allocations, so this shortfall will have an impact on all schools in grades K through 12. Ridgway commented that over the past few years, revenue from COVID-19 era funds such as ESSER (Elementary and Secondary School Emergency Relief) were used to fill some funding gaps, especially regarding the safety of schools. These funds are no longer available.

Ridgway explained a number of possible adjustments to district spending to help limit the effect of possible decreased funding. Among these are:

  • Decrease the amount of funding for capital investment. It was reduced from $3 million annually to $2.5 million, with the difference used to fund a compensation increase two years ago. At this point, it appears unlikely to return to its former amount.
  • Eliminate new hiring bonuses. This option has been discussed among principals, said Executive Director of Education Services Alicia Welch, who met with school officials last November to begin planning for the 2026-27 school year.
  • Changing to a self-funded health insurance program. This will not be possible in 2026-27 but may be implemented in the future.
  • Change the allocation of Specific Ownership taxes (on such items as trailers and boats). These taxes represent about 5% of tax revenue. At present, the district can determine what portion of these taxes will contribute to the School Finance Act and what portion will be retained locally.
  • Adjust retention bonuses.
  • Slow progress on the projects at Grace Best because the Home School Enrichment Academy structure will not be in use until the beginning of the next school year.

An additional change in state funding is based on the fact that, in the past, funding was primarily based on the student count determined on Oct. 1 each year, and the rate of per-pupil funding was calculated separately.

Because birth rates are declining and therefore the student count is also declining by a predicted 99 students in the coming year, an increase in the rate of per-pupil funding will not compensate for a lower student population. In the past, districts were allowed to average their student count over five and then four years. That is no longer the case, so the impact will be felt more immediately.

Ridgway said that D38 is unusual in that its student population is very mobile, with those beginning the year often moving away before the end. In addition, due to the price of housing in the district, families often move here later in their lives. Executive Director of Education Services Alicia Welch commented that in elementary schools, families are given a survey each year regarding whether they plan to remain in the area.

School Superintendent Amber Whetstine commented that the district is doing targeted marketing to increase the student count.

If funding will primarily be based on student count, it may be more necessary to be flexible in staffing from one school to the next. Welch said that some teachers are licensed to teach more than one subject, and that may add to flexibility internally. Many positions are now being posted internally.

Ridgway said that Director of Planning, Facilities and Grounds Melissa Andrews is monitoring such local factors as birth rates and home sales to help in forecasting changing conditions.

When asked whether Universal Pre-Kindergarten produced significant revenue, Ridgway said that it is a break-even situation.

Board President Ron Schwarz asked when some of this information may be solidified.

Ridgway said the Legislature is in only its second month of session, so any solid information will unlikely be available for a few months.

Whetstine thanked the entire district team for being proactive.

To view Ridgway’s presentation, please see lewispalmer.org, board of education, boarddocs, and select the meeting date.

Parent and Community Advisory Committee report

PCAC Co-chairs Renee Butler and Kirsten Zook reported to the board on the committee’s activities and requested guidance regarding communication between the board and the committee.

Butler said that over the past year, the committee has changed its meetings from being largely listening to presentations to holding interactive discussions on topics that change each month.

An early example of this format was when the committee held a special meeting to discuss how to select a new district superintendent. Results of that meeting were provided to the board and resulted in the position being posted internally.

In the 2025-26 school year, the committee voted at its initial meeting on which aspects of the district strategic plan they wished to concentrate.

The committee voted to concentrate on Academic Excellence and Valuing Our People, priorities 2 and 3.

In discussing academic excellence, Director of Assessment and Curriculum Dr. Michael Brom explained the criteria for being designated as Accredited with Distinction. The criteria were recently changed to emphasize the degree of participation in standardized testing. Over the past two years, families have been allowed to opt their students out of testing.

The committee discussed ways to encourage participation by telling students that it benefited them by showing where they ranked among peers and supporting their progress. The committee also voted to prioritize being in the top 10% academically. A question that arose is whether the community values being accredited with distinction or whether energy should be used elsewhere.

In discussing Valuing Our People, Priority 3, Human Resources Director Michaela Vanderheiden spoke about results of staff surveys and planned actions to improve results.

The committee said it remains committed to improving compensation and understanding such factors as enrollment trends and inflation affecting the district budget.

Butler said a concern in the PCAC is a lack of understanding of the relationship between the Financial Transparency Committee (FTC) and PCAC. Butler said they did not have access to the agenda for FTC meetings and did not know the name of the chair, although FTC is a subcommittee of PCAC.

Schwarz commented that it was intentional that FTC be a subcommittee of PCAC and should function as PCAC requires.

Butler thanked board members for their attendance and participation at PCAC meetings, and Zook commented that communication among the board, the committee, and others is key. Currently, members of PCAC are asked to report back to their school advisory committees while PCAC requests that the board inform them of subjects they wish to address.

Board Vice President Dr. Patti Shank, who is also board liaison to the committee, said the board represents the community, and if the committee wishes to discuss a topic, what can the board offer, such as a definition of excellence? She has learned a lot by attending committee meetings and learning what people in the community are thinking, she said.

Schwarz summarized his reaction to the presentation as follows:

  • The board needs to be more prescriptive and specific about its expectations, offering tasks that are measurable and finite.
  • The board needs to describe the relationship between PCAC and FTC.
  • PCAC is attempting to give actionable conclusions and advice to the board.
  • Perhaps a representative of PCAC could attend the board’s retreats to learn the board’s intentions.

Human resources report

Vanderheiden reported on timelines for human resources actions in the remainder of the year.

She detailed evaluations and check-ins for staff at all levels and described the difference between non-renewal and intent-to-renew contracts.

Hiring would normally begin in February but is delayed due to budget uncertainty.

For details on the process, please see boarddocs.

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The Lewis-Palmer D38 Board of Education usually meets at 6 p.m. on the third Monday of the month from 6 to 8 p.m. in the Bauman Learning Center, 146 Jefferson St. The next meeting will be on Monday, March 16. For information, please contact vwood@lewispalmer.org.

Harriet Halbig may be reached at harriethalbig@ocn.me.

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