Maintaining Momentum Through Fiscal Responsibility

Last month, I shared information about property taxes and how state-level decisions are impacting school funding across Colorado. One of the key takeaways was this: even as property taxes increase, Garfield Re-2 is not receiving additional funding from those increases.

As we continue that conversation, the natural follow-up question is this: how are we managing the resources we do have, and how do we maintain our momentum as a district?

As we enter budget season, I want to provide a clear picture of what fiscal responsibility looks like in Garfield Re-2.

First, it is important to be transparent about where we stand today.

Garfield Re-2 is currently operating with a structural deficit. Our ongoing costs exceed our revenue, and we have been using fund balance to bridge that gap. This has been an intentional decision to invest in our staff and remain competitive as we recruit and retain excellent teachers and support staff. But just like a household cannot continue to spend more than it earns, this is not sustainable long-term for our district.

Even in the best-case scenario from the state, Garfield Re-2 would receive a 2.3% increase in revenue. This doesn’t compare to the inflationary increase we are all seeing in our day-to-day costs. 

Because the state is trying to figure out its own budget issues, we are hearing rumblings of a possible mid-year recision from the State - rumors only - but with enough credibility that our finance team must put Garfield Re-2 in a position to deal with any changes. 

That reality makes our work around financial responsibility even more important.

Over the past three years, our district has taken consistent and measurable steps to reduce costs and operate more efficiently.

We have reduced district office spending by $740,000 and continue to limit non-salary expenditures wherever possible. In fact, our administrative costs are among the lowest in the state, with just 1.1% of our budget dedicated to administration. That reflects a clear priority to keep resources as close to students and classrooms as possible.

We have also taken a disciplined approach to managing day-to-day operations. District departments and schools are closely monitoring their budgets, and last year we came in under budget overall. At the same time, we have made targeted reductions in areas like purchased services and curriculum costs. We have adjusted the schedules of some district office staff to reduce expenses.

Beyond reducing costs, we are also working to be more strategic with how we generate and manage revenue.

We have secured additional revenue through partnerships with local banks, negotiated long-term contracts to reduce utility costs, and implemented energy-efficiency projects that continue to deliver savings over time. Our team is actively managing more than 25 grants that directly support students, staff, and programs across the district.

We are also improving how we manage and communicate our finances. Our use of dynamic budgeting tools allows for real-time tracking and transparency, ensuring that our building and department leaders have clear, accurate information to guide decisions.

All of this work aligns directly with one of the key priorities in our Strategic Plan: building and maintaining sustainable financial capacity. That means making thoughtful decisions today that protect our ability to serve students in the future.

And that is ultimately what this work is about.

Every decision we make, whether it is reducing costs, renegotiating contracts, or adjusting how we operate, is grounded in a simple goal: protecting opportunities for students.

It supports our ability to recruit and retain quality staff. It helps ensure that classrooms remain stable and well-supported. And it allows us to continue preparing students to be confident, capable, and connected members of our community.

At the same time, we want to be clear: while we are managing our resources responsibly, we cannot reduce our way out of this challenge entirely. As an organization, our budget is 80% people, and the broader funding system and economic pressures we discussed last month continue to impact our district.

That is why transparency matters.

As we move through this budget season, we will continue to communicate openly about our financial position, the decisions before us, and the steps we are taking to ensure long-term stability.

Our commitment is to be responsible stewards of the resources we have, while maintaining momentum and staying focused on what matters most: our students, our staff, and our community.