by North Forty News Staff | NorthFortyNews.com
Declining enrollment, rising costs, and state funding uncertainty could impact staffing and student programs in 2026–27
Poudre School District is projecting a potential funding reduction between $8 million and $17 million for the 2026–27 school year, a shift district leaders say could lead to staffing reductions and changes to student programs across Northern Colorado schools.
Superintendent Brian Kingsley shared the update with families this week, citing declining enrollment, uncertainty in state funding, instability in federal grants, and rising operational costs as key drivers behind the projected shortfall.
District officials say PSD is serving fewer students than in past years, largely due to lower birth rates and the region’s high cost of living. Because public school funding in Colorado is closely tied to enrollment, fewer students mean less funding. At the same time, Colorado lawmakers are working through a significant state budget shortfall that could further reduce education funding when the state budget is finalized later this spring.
Federal funding also remains uncertain. Some grants supporting student mental health and related services have ended or may not continue, adding to financial pressure. Meanwhile, expenses such as healthcare, utilities, and contracted services continue to rise.
Staffing accounts for more than 85 percent of the district’s budget. District leaders say that as PSD enrollment declines, staffing levels will need to adjust over time.
Potential impacts could include larger class sizes, fewer course offerings, adjustments to enrichment programs, and changes in student support services. Leaders emphasized that reductions would be approached carefully and with compassion, but acknowledged that cuts of this size would affect both staffing and programs.
The district says it has already taken steps to address financial pressures, including continued reductions to central office staffing and operating budgets, adjusting school funding to reflect enrollment changes while maintaining support for small schools, and reviewing staffing needs across the district. Those efforts follow $12 million in reductions made over the past two years.
District priorities moving forward include maintaining a focus on literacy, mental health, and belonging, and ensuring students graduate with options for their futures. Leaders also pledged to work closely with employee associations, families, and community partners as planning continues.
PSD officials said updates will continue as the state budget process unfolds. Families can learn more about district planning and updates at https://www.psdschools.org.
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Attribution: Poudre School District