At a special meeting on Wednesday, May 20, the Archuleta School District (ASD) Board of Education heard its draft budget for 2026-2027, presented by ASD Finance Director Eric Burt.
The following day, the board heard it was not awarded a Building Excellent Schools Today (BEST) grant toward a new building that would serve pre-kindergarten through eighth grade.
Burt began his presentation to the board on May 20 with the proposed budget highlights, telling the board, “There aren’t many, unfortunately.”
The proposed budget includes total program funding of $19,805,913, with 92 percent of that being from local property taxes and 8 percent being the state share, Burt explained.
That, he added, is based on 30 percent implementation of the new school finance act and three-year averaging of enrollment.
The Colorado Department of Education explains on its website, “In May 2025, the Colorado legislature passed a major update to the School Finance Act, HB 25-1320, implementing the new school funding formula enacted in HB 24-1448. The new funding formula will be phased in from the 2025-26 budget year through the 2030-31 budget year.”
Burt outlined that, if the new finance model were fully implemented, the district would see $21,389,743 in program funding from the state.
This year, Burt told the board, the district is at 15 percent implementation and four-year enrollment averaging.
More on the changing school finance formulas, which is based on numerous factors, can be found at https://ed.cde.state.co.us/cdefinance/generalinfo.
The projected general fund revenue and expenses are balanced at $21,515,000 each, Burt indicated, later clarifying that includes the district’s mill levy override revenue, other payments from the state, Secure Rural Schools funding and other funding.
The proposed budget reflects a projected decrease in enrollment, with the budget based on a funded pupil count of 1,532.7 — down 47.6 from 1,580.3 in 2025-2026 and 1,616.8 in 2024-2025.
Burt noted that the two years that dropped off the calculation were “easily” the years with the district’s highest enrollments.
The proposed budget reflects an increase in per-pupil funding from $12,268 in 2025-2026 to $12,922 for 2026-2027 — an increase of $654.
The budget also reflects an October full-time pupil count of 1,501.5 — down from 1,535.5 in 2025-2026 and 1,535.0 in 2024-2025.
The proposed budget, Burt told the board, includes a 5 percent decrease for non-salary/benefit budget areas.
It also includes a step increase for all employees, but no percent increase to the base salary schedules.
Burt explained later in the meeting the October count number in the budget is conservative, and he’s hopeful ASD will see an increase in its October count and could do a midyear percentage increase across the salary schedules, but that the district could also do a onetime bonus out of reserves midyear if the program total does not increase.
Burt noted salaries and benefits of all employees represent 81 percent of the total general fund budget.
The proposed budget also includes grant fund total revenues and expenditures of $560,000, as well as $374,000 for new capital improvement projects, with other previously funded projects that have not been completed also to be included.
Burt noted the district will also cap out this year at the 27 mills, up from 26.014 for 2025-2026, as part of the state’s mill levy correction.
Total resources available for the budget totals $31,498,292 including beginning fund balances, with the district projecting to maintain that $9.98 million in fund balance at the end of the 2026-2027 year, according to the draft budget.
Burt noted that, because there’s not new revenue, there’s not a significant change to the budget from the current year.
During board discussion on the proposed budget, board member Amanda Schick asked if there is a strategy to increase the district’s enrollment.
“There is not an orchestrated marketing plan,” Superintendent Rick Holt explained.
The draft budget document is available on Board Docs, which can be reached via www.mypagosaschools.org.
BEST grant not awarded
The following day, May 21, the district announced that it was the first on the waiting list for a BEST grant.
In a statement sent to the school community via the district’s newsletter, the district explained the BEST board had $173 million to allocate this year and $536 million in requests.
The statement notes the BEST board awarded 17 grants — two of which are bond-dependent — and named ASD’s project as the first backup project.
ASD asked for $50 million.
“Being named 18th out of 57 total applications is promising, especially as a large ($50M) grant request,” the newsletter states. “For context, only three total projects larger than $20M were awarded this year. Unfortunately, even if both bond-dependent projects were to fail to secure the required matching funds, there would not be enough remaining dollars to fully fund our $50M application request.”
It adds, “However, our ranking indicates a high likelihood that our proposed project would be funded by BEST next year.”
It notes the ASD board will discuss options on how it wants to proceed at a June 3 work session.
The newsletter outlines potential paths forward:
• The possibility of pursuing a bond in November and then reapply for a BEST grant next spring with the matching dollars secured.
• Wait for next year’s BEST grant awards and, if awarded, then pursue a bond in November 2027.
If the Board decides to pursue a bond (this year or next), it will have to reapply for a BEST grant for the required matching funds, the newsletter explains.
Pagosa Peak Open School budget
During its regular meeting held on Wednesday, May 20, the Pagosa Peak Open School (PPOS) Board of Directors reviewed its 2026-2027 draft budget, which was presented by Business Manager Derek Walker and board treasurer Pamela Meade.
Walker explained that the school’s next budget is based on a total pupil count of 134, up from the 2026 amended budget that shows a total pupil count of 129.
Walker also indicated that PPOS is receiving approximately $700 more per student with the state’s per pupil funding.
Meade mentioned that the budget is set up to be able to accommodate more expenses associated with potentially having more students enrolled than the 134 included in the budget.
She explained that if additional students are enrolled, “the budget is kind of set up so that we can actually take on more kids without having considerable expenses.”
Meade indicated that PPOS could still accommodate roughly 150 students with its draft budget for next year.
She also explained that if the school does not see additional enrollment, then those additional funds could be used elsewhere, such as going toward the middle school classroom project.
According to the draft budget, total revenues for the 2026-2027 school year are listed at $2,434,550, which is down from the 2025-2026 amended budget, which shows $2,721,621 in total expenses.
Total expenses in the draft budget for 2026-2027 are listed at $2,263,765, which is down from the 2025-2026 amended budget that shows total expenses at $2,720,118.
The beginning fund balance for 2026-2027 draft budget is listed at $537,194 and the ending fund balance is listed at $516,979.
During the meeting, the board also unanimously approved Resolution 2026-001, approving a $40,000 transfer from the reserve to general fund for phase one of the school’s middle school classroom project.
Meade explained that the project is expected to begin mid-June and should be completed by the time next school year starts.
The PPOS board will consider the draft budget for approval at its next regular meeting scheduled for Wednesday, June 10, at 5 p.m.
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