Proposed mill levy summary
The Poudre School District Board of Education is considering a ballot question for the November 2024 election to provide up to $49 million annually to maintain schools as part of the Colorado Debt Free Schools Act, which allows school districts to seek voter approval to fund school construction and maintenance needs through an additional mill levy. During the district's long-range planning process last spring, the Board heard feedback from members of the public that encouraged seeking a mill levy as part of the district's ongoing effort to address financial challenges.
This funding would be used in schools and classrooms and dedicated to the district’s vision of supporting and inspiring every child to think, to learn, to care and to graduate prepared to be successful in a changing world.
Specifically, funds would be used to:
- Attract and retain exceptional teachers and staff
- Expand career and technical education spaces and update curriculum, resources and classroom materials to better prepare students for their future
- Maintain aging school buildings to extend their useful life
- Support neighborhood schools
Frequently Asked Questions
More information is also available on the Proposed 2024 Mill Levy web page.
Proposed Mill Levy Funding, Impact and Oversight
How much will the proposed mill levy provide to the district?
The proposed mill levy would provide the district an additional $49 million per year. This funding would be in addition to per-pupil funding from the state. School districts are allowed to seek voter approval for additional funding to address priorities such as teacher recruitment and retention, classroom support, and building maintenance.
How will the funding be used if the Board of Education decides to refer the question to the ballot and it passes?
It is anticipated that approximately $20 million of the proposed mill levy will be used for salaries, classroom materials, career and technical education, and neighborhood schools, which will directly benefit classrooms and students. Approximately $24.4 million will be dedicated to necessary building maintenance and repairs in our forty-nine schools. The final $4.6 million will be allocated to district-authorized charter schools, which is required by state law.
How much of the proposed mill levy will be used for teacher salaries?
The district anticipates dedicating about $20 million of the proposed mill levy to salaries, classroom materials, career and technical education, and neighborhood schools, which will directly benefit classrooms and students. The Board’s goal is to provide increases to starting and existing salaries to keep our district in line with comparable districts so we can attract and retain great teachers. The Board will review the percentage that will be used for salaries every year as part of the budget process.
Will this money be prioritized for students and classrooms?
Yes, approximately $20 million of the funding would be dedicated to general fund support for teacher and staff salaries, career and technical education, classroom materials/instruments, and neighborhood schools. $24.4 million will be dedicated to school maintenance and renovation.
In general, more than 86% of the district’s total funding goes directly to schools, students, and teachers.14% of the district’s funding goes toward support services that directly benefit students and classrooms.
A billion dollars in maintenance needs seems like a lot of money. How did PSD define this amount and how will maintenance needs be prioritized if the measure is successful? Why is the cost of PSD’s facility maintenance needs so high?
A billion dollars in maintenance needs seems like a lot of money. How did PSD define this amount and how will maintenance needs be prioritized if the measure is successful?
PSD partnered with McKinstry Engineering, LLC to undertake a comprehensive study of the district’s maintenance needs related to mechanical systems during the 2023-24 school year. This study has been combined with the PSD Operations team’s evaluation of the maintenance needs in our system, including needed replacement cycles for things like asphalt and playgrounds. These studies include approximately $250 million to $300 million to install air conditioning in our thirty-two buildings that do not have it. To view maintenance needs by building, please click here to access the Facility Condition Assessments and air conditioning reports by school. A five-year facilities maintenance plan has been developed by the Operations team. It will be used to determine the order in which projects are completed. That plan is posted to this webpage. It is also possible that there will be emergent maintenance needs that must be addressed right away in the years to come.
Why is the cost of PSD’s facility maintenance needs so high?
PSD has just $800,000 per year in its budget to be used for capital improvements, repairs, and maintenance. $800,000 does not go very far in efforts to maintain our forty-nine buildings. For example, the chiller at Fort Collins High School failed during the 2022-23 school year. The cost to replace this one item alone was more than $1 million. In the past, PSD has issued bonds to fund maintenance of our buildings. The last bond to pass that included maintenance was the 2016 bond, which provided a limited amount of funding for one-time use in addressing maintenance needs. This funding is sunsetting.
Will charter schools receive additional funding from this proposal?
State law requires a portion of locally approved mill levies or bonds to be shared with charter schools. The district estimates $4.6 million will be provided to charter schools if voters approve the measure.
Will any new schools be built if this measure is successful?
No. The district has no current plans to build new schools.
How will this measure impact individual taxpayers?
If the measure is successful, individual taxpayers will pay approximately $25 per $100,000 in home value each year. If you own a home valued at $500,000, this means you will pay approximately $125 more in taxes.
Will there be an oversight committee if this measure is successful?
Yes. PSD will establish a mill levy oversight committee of staff and community members if the measure is successful. In addition, as part of its fiscal accountability and transparency, the district publishes its annual budget and an independent audit on its web site. All Board of Education meetings are open to the public and include an opportunity to address the school board.
Budget and Enrollment
What is causing some of the district’s recent budget challenges?
The district has been experiencing declining enrollment over the past decade. Both Larimer County, the national census, and the district’s data show declining birth rates in our region. The incoming kindergarten class in PSD’s neighborhood schools is one of the smallest in more than 10 years. Since school funding is allocated in Colorado on a per-pupil basis, declining enrollment means the district and individual schools receive less funding to provide comprehensive programming at schools and maintain buildings.
What is causing the decline in enrollment in PSD? Are families choosing charter schools?
Birth rates in our district area have been declining for many years. The district’s entering kindergarten class, in our non-charter schools, has approximately 1,400 students, compared to the more than 2,500 students in our 12th grade class. Some families in our district are choosing to attend charter schools. PSD has five district-authorized charter schools. All schools in our district, including charters, are being impacted by declining birth rates.
What happens if enrollment continues to decline in PSD?
Passing a mill levy override would help PSD to mitigate the long-term impacts of enrollment decline on the district’s funding. However, if enrollment continues to decline precipitously, as projected, it is still possible that the district will need to consider school consolidation or closure in the future. It is also possible that other tax-related measures on the ballot in November 2024, if passed, would reduce the amount of funding for services provided to children.
Didn’t the district receive more money when property taxes increased?
The state’s School Finance Act sets the annual funding amount for each district across Colorado. If local property tax collections increase, the district’s base funding stays the same and the state reduces its share of funding for the district. State law allows the district to receive local voter approval for additional funding to address specific needs. In this case, PSD is considering asking voters to approve additional funding in a debt free mill levy. If the measure passes, it will also allow more general fund dollars to go toward students, teachers, and classrooms.
Why is the district seeking a mill and not a bond?
Historically, Colorado school districts have funded maintenance using one-time funds approved by voters in the form of bonds. Because these are one-time funds, completing repairs using them is the equivalent of mortgaging the cost of those repairs over a 24-year period while the district pays off the bond debt. A mill levy, by contrast, would provide ongoing funding that could be used every year to address district maintenance needs. This is a more fiscally responsible way to fund costs that we know will continue year over year into the future.
We have heard the reason for school consolidation was about preventing a reduction in services in schools, not about funding. Is this true?
These are one in the same. As enrollment declines in schools, the funding allocated to these schools also declines because funding is allocated per pupil in Colorado. Less funding means that schools must reduce services provided to students, including like specials (i.e. art, music, physical education) and counseling, etc.
When was the district’s last bond and what did it fund?
The last bond to pass that included maintenance was the 2016 bond, which provided a limited amount of funding for one-time use in addressing maintenance needs. This funding is sunsetting.
What did it fund?
The 2016 bond allowed the district to build three new schools and renovate a fourth by adding a wing. There was also $40 million in maintenance to existing buildings as part of this voter-approved measure.
Additional Questions
Why did PSD leadership receive salary increases for the 2023-24 school year?
The district has committed to ensuring that all employee groups (teachers, classified, and administrative staff) are paid at market rates. As part of this effort, all PSD employees received salary increases for the 2023-24 school year. Adjustments made to leadership salaries in the previous school year addressed a significant gender pay equity gap in the leadership team. Even with these adjustments, the cabinet team's salaries remain below market, as does that of the superintendent, who received no salary increase for the 2024-25 school year.
Why doesn’t PSD eliminate School of Choice?
Offering School of Choice is required by state law in Colorado. PSD cannot eliminate School of Choice.