Dear Poudre School District Community,
Over the past several weeks, I’ve shared information about enrollment trends and the work of our Comprehensive Planning Committee. I want to continue that commitment to open and honest communication by sharing an update about the budget challenges Poudre School District is facing as we plan for the 2026–27 school year.
My goal in sharing this now is not to create fear or uncertainty, but to help our community understand what is ahead, why it is happening, and how we are approaching these challenges thoughtfully, responsibly, and together with students at the center of our decisions.
Why PSD is facing budget challenges
Like many school districts across Colorado and the country, PSD is facing several financial pressures at the same time. Based on what we know today, we are projecting a funding reduction of between $8 million and $17 million for the 2026–27 school year. This range reflects uncertainty that will remain until the state budget is finalized later this spring.
These challenges are driven by a few key factors:
- Fewer students enrolled in PSD. Our district is serving fewer students than in past years, largely due to lower birth rates and the high cost of living in our region. Just 23% of households in our community have school-aged children. Because school funding is closely tied to student enrollment, fewer students means less funding.
- Potential reductions in state funding. Colorado is facing a significant budget shortfall, which will likely reduce the amount of funding available for public education.
- Cuts and instability in federal funding. Some federal grants that support student mental health and other services have ended or may not continue. We anticipate that other sources of federal funding will remain unstable as well.
- Rising costs. Expenses such as healthcare, utilities, and other essential services continue to increase each year.
While some state funding adjustments increase the amount of money per student that is allocated to districts, those increases do not make up for the combined impact of declining enrollment, rising costs, and potential funding reductions.
What this means for staffing and student programs
Staffing makes up the vast majority of a school district’s budget - over 85%. As PSD becomes a smaller district with less funding, we will need to reduce staffing levels over time. These reductions will not be easy, and they will have real impacts.
Fewer staff can affect:
- Class sizes and course offerings, meaning larger classes and fewer course offerings
- Academic and enrichment programs
- Student support services
- The adults our students see and rely on every day
We are committed to approaching these decisions carefully and with compassion, but it is important to be clear: budget reductions of this size will affect both staffing and student programs.
Our priorities as we plan
Even in difficult financial moments, our values remain clear. As we plan for the year ahead, we are guided by these commitments:
- Students come first. We will continue to focus on literacy, mental health and belonging, and ensuring students graduate with options for their future.
- Care for our staff. Our staff are essential to student success, and we will do everything possible to support and retain talented employees as we adjust to our financial reality.
- Responsible stewardship. We must align our staffing, programs, and operations with the resources available to us.
- Collaboration and partnership. We will continue working with our employee associations, staff, families, and community partners as we navigate these challenges together.
How the district is responding
The district has already begun taking steps to address these challenges, including:
- Continuing reductions to central office staffing and operating budgets.
- Adjusting how schools are funded to reflect enrollment changes while maintaining support for small schools.
- Carefully reviewing staffing needs across the district.
These reductions to central office budgets and adjustments to school funding are on top of the $12 million in reductions that have already been made to central office departments and school budgets over the last two years.
What happens next
The state budget process is still underway, and some of these projections may change. Our finance team is closely monitoring developments, and we will adjust our plans if conditions improve.
In the months ahead:
- We will continue to share updates as more information becomes available
- We will provide additional details and FAQs to support families and the community
Moving forward together
These are real challenges, and it’s understandable to feel concern when hearing numbers like these. At the same time, it’s important to remember that PSD remains a strong district. Our students continue to perform at high levels as they learn and grow, our staff are deeply committed, and our community values public education.
This moment calls for careful planning, clear communication, and shared responsibility. By addressing these challenges openly and thoughtfully, we are working to build a strong and sustainable future for Poudre School District.
Thank you for your continued trust, engagement, and support of our students and schools.
With appreciation,
Brian Kingsley
Superintendent
Poudre School District