Senate Bill 23-287 School Finance Adequacy Studies

Senate Bill 23-287 required the Colorado Department of Education (CDE) to contract for two different school finance adequacy studies and report on the components and costs necessary to adequately provide Colorado students a free and uniform public education. CDE appreciates the comprehensive work on the two independent adequacy studies and the Coloradans who contributed their time and effort to these important studies on school funding.

By design, these studies were conducted using differing approaches and methodologies. Therefore, they would not be expected to produce the same results and recommendations.

One of the studies, conducted by the American Institutes for Research (AIR), was an outcome focused financial adequacy study using a method of statistical analysis known as cost function modeling to identify the funding levels needed to achieve a target level of performance. The website for the output based financial adequacy study conducted by AIR is located at: Colorado Financial Adequacy Study | American Institutes for Research (air.org)

The other study, conducted by Augenblick, Palaich and Associates, Inc. (APA), in partnership with Picus, Odden & Associates (POA), Afton Partners (Afton), and the Colorado School Finance Project, was an input focused financial adequacy study utilizing professional judgment (PJ) and evidenced-based (EB) methods. This approach creates a prototypical school and determines costs of all elements necessary for success and to meet state academic standards and for success. The website for the input based financial adequacy study conducted by APA is located at: Colorado Financial Adequacy Study | APA Consulting.

While the two studies each contain unique findings and recommendations, it is important to note that these two independent studies are complementary, with similar conclusions.

The studies contain recommendations for increased funding, highlighting the challenges our schools face in providing every student—especially those with the greatest needs—the opportunities they deserve to thrive. The studies also note the funding challenges that Colorado districts face with recruiting and retaining teachers as well as other location-based factors that impact school districts in Colorado.

Both studies recommend additional funding in the School Finance Act to align with state education goals and support the diversity of students and districts in Colorado. The reports have been submitted to the General Assembly for further review and consideration.

School Finance Adequacy Studies (S.B. 23-287)