Like most Colorado school districts, Littleton Public Schools grapples with significant budget cuts for next year
State budget shortfall, new school finance formula, rising costs and declining enrollment to blame
The Littleton Public Schools Board of Education continued its conversation regarding the 2026–2027 school year budget during its regularly scheduled meeting on February 5, 2026. The Board has been engaged in budget conversations throughout the school year, and last night the Board heard more detailed information regarding the severity of the cuts as well as possible solutions.
There are several factors that are putting pressure on next year’s LPS budget:
Colorado’s new School Finance Formula for PreK–12 education is bad for LPS. Current projections show an approximate budget shortfall for Littleton Public Schools ranging from $7.9 million to $9.4 million next year. The Ops/Tech mill levy passed by Littleton voters in 2020 can cushion about half of that shortfall. That leaves anywhere from $4.4 million to $5.9 million in reductions LPS must identify for the 2026–2027 school year.
Enrollment is down in communities across the Denver metro area, including in LPS. There are fewer children living within LPS boundaries and in the surrounding neighborhoods due to high housing costs and the fact that LPS is landlocked with little potential for growth. Because public schools are funded largely on the number of students they serve, declining enrollment means significantly less state funding.
Staffing adjustments are made at individual LPS schools every year due to enrollment fluctuations. These changes are occurring already in our schools and are not dependent upon the state budget situation. LPS will face additional staffing reductions due to state budget cuts.
LPS continues to absorb rapidly increasing costs in PERA, rising 26 percent over the last five years, and in healthcare, rising 16 percent over the last three years.
LPS continues to have a priority to attract and retain the best employees, and over the last few years has been able to offer more competitive pay. Sustaining it requires more money every year, and that is impossible in times of budget decreases.
The $298 million bond passed by LPS voters in 2018 cannot help the general fund. By Colorado Statute, bond funds can only be spent on capital expenses, such as facility repairs, upgrades, technology infrastructure, construction, grounds maintenance, Americans with Disabilities Act modifications, electrical, and plumbing.
In budget conversations earlier this school year, the Board of Education identified the following guiding principles for budget reductions:
Minimize the impact in our schools with a focus on equity across student groups
Maximize other district fund budgets, such as Ops/Tech and reserves
Protect programs that directly support student achievement and mental health
Use other available district funds wherever possible to help close the gap
The Board noted that budget cuts of this magnitude cannot be accomplished by reducing a few budget items here and there. LPS is actively seeking cost-saving opportunities throughout the district. For example, the Board discussed ideas of how to maximize the Ops/Tech fund to protect the general fund. The Board also weighed the benefits and risks of using varying amounts of district reserves. But, because education is a people-centered service, about 85 percent of a school district’s general fund goes toward salaries and benefits. The only way to cut upwards of $5 million from the LPS budget is to also look at pay and services.
Budget reduction ideas include decreasing the number of paid work days for all LPS employees through furlough days, reducing the total number of employees, and freezing salaries. Employee reductions could be realized as much as possible through retirements and turnover by leaving some vacancies unfilled. If some positions would have to be cut, it would be the Board’s priority to keep those cuts away from the classroom if possible. Final decisions about salary are part of the negotiations process with the Littleton Education Association and will not be settled until later this spring.
Budget cuts are likely to stretch into the 2027–2028 and 2028–2029 school years as well, as the state of Colorado has not identified any long-term solutions for its ongoing budget shortfall.
Board members also discussed the option of asking local voters to pass a mill levy override (MLO) to provide about $14 million of ongoing revenue to help the district keep the programs and offerings this community values most. A $14 million MLO would cost taxpayers about $35 a year for every $100,000 of home value. The last time LPS went to its voters to pass an MLO was in 2010. Board members expressed their concerns about asking voters for a tax increase. They also noted they felt school districts are left with few options as the state cannot be counted on to fix its budget problems. The Board will continue its conversations on this topic throughout the budget process.
It’s important to remember that no decisions have been made, and that the Board will continue its budget conversations about possible budget solutions throughout the spring semester. LPS will continue to keep its community informed along the way.
Those with feedback may email the Board of Education, boardofeducation@lps.k12.co.us.