Garfield Re-2 Budget Continues Investment in People, Reduces Planned Deficit

The Garfield Re-2 Board of Education approved a $90.3 million budget for the 2026-27 school year June 24. The budget continues a long-term strategy of investing in employees while reducing the district's planned General Fund deficit.

Three years ago, the Board approved a four percent increase to the district's salary base while preserving annual step-and-lane increases. District leaders knew the decision would require temporary, significant deficit spending, and they created a long-term plan to gradually return the district's operating budget toward balance.

Like school districts across Colorado, Garfield Re-2 competes for talented teachers in a very competitive job market. At the time, the salary increase helped the district remain competitive with neighboring school districts.

The 2026-27 budget shows that the plan is working.

The district entered the current fiscal year with a planned General Fund deficit of about $2.2 million. Current projections show Garfield Re-2 will finish the year closer to $1.2 million, nearly $1 million better than originally planned. The new budget reduces planned deficit spending again to about $508,000 for the 2026-27 school year.

Nearly 80 percent of Garfield Re-2's General Fund provides employee salaries and benefits, reflecting the district's continued investment in the people who work with students every day.

"Education is built on people and relationships," Finance Director Jason Lynch told the Board.

Lynch said the district intentionally used part of its fund balance to invest in salaries and benefits during a time of rising inflation, higher health insurance costs, and growing competition for employees. At the same time, district leaders carefully managed all other spending to reduce the deficit without cutting their investment in staff.

"If people ask what we did with our fund balance, we can honestly say we invested it in salaries and benefits," Lynch said. "We did it in a responsible way, so we didn't just spiral off the cliff."

Lynch said reducing the planned deficit does not remove the financial pressures facing the district. Annual increases in state funding are largely used to cover salary advancements, higher employee benefit costs, and inflation. That leaves limited flexibility to strengthen employee pay, maintain aging buildings, and invest in other long-term needs.

During the same three-year period, neighboring school districts continued to increase salaries due to voters approving local tax initiatives. Today, Garfield Re-2 has the lowest starting teacher salary among school districts in the Roaring Fork Valley, showing that attracting and keeping great employees remains a challenge.

The district also continues to replace reductions in federal funding by pursuing competitive grants. Garfield Re-2 expects to receive more than $2 million through about 22 grants during the coming year to support student programs and district operations.

Lynch said the district's financial progress reflects the strategy the Board adopted several years ago: invest in employees, carefully manage every other dollar and steadily reduce the planned deficit each year.

"The only way to do that was to hold non-salary costs constant," Lynch said. "You challenged us three years ago to create a strategy that would support that investment in our staff. It has certainly been a challenge, and we're pretty close."

The approved budget includes:

General Fund $73,951,305

Food Service Special Revenue Fund $2,609,732

Governmental Designated-Purpose Grants Fund $2,098,839

Pupil Activity Special Fund $1,409,173

Bond Redemption Fund $9,079,080

Capital Reserve Capital Projects Fund $1,200,000

Although the district's total budget exceeds $90 million, much of that money can only be used for specific purposes. The Bond Redemption Fund repays voter-approved school construction bonds. Grant funds support the programs for which they were awarded. The Pupil Activity Fund supports athletics, clubs and other student activities. The Capital Reserve Fund pays for building maintenance and improvements, and the Food Service Fund supports the district's nutrition program.

The General Fund, which supports the district's day-to-day operations, totals about $74 million. Nearly 80 percent of that fund is invested in employee salaries and benefits.

The complete 2026-27 Garfield Re-2 budget is available on the district's website.