While district-run schools in Denver expect to see $30 million more in the next school year, officials are bracing for expiring federal aid, forcing them to start implementing cuts in the upcoming budget round.

To blunt the effects of losing stimulus dollars known as “ESSER,” Denver Public Schools is implementing a “stepped down” funding plan over three years in order to reduce dependence on these federal funds, said Chuck Carpenter, the district’s chief financial officer.

On Thursday, Carpenter told the district board during its regular meeting that declining enrollment and the end of federal stimulus funding meant to fill COVID-19-induced holes — coupled with raises for teachers and classroom aides, as well as inflation — has necessitated the tough decisions school leaders face.

“There are very, very challenging decisions that leaders have to grapple with within their communities,” Carpenter said. “I just wanted to voice that. This is a challenging process.”

Even accounting for the loss of federal stimulus dollars known as “ESSER,” district managed-schools in Denver Public Schools have actually seen an 18% funding increased since fiscal year 2022, while enrollment declined 2.4%, according to a report to the board of education this week.

In fiscal year 2022, district-managed schools — which does not include charter or innovation schools — received $677.8 million in funding. (The district’s fiscal year begins July 1.)

This academic year, schools received $769 million.

Next school year, the amount is expected to be $799.7 million.

The state received $1.8 billion and Denver Public Schools $331.4 million in total ESSER funding, said Jeremy Meyer, a spokesperson for the Colorado Department of Education.

But ESSER funds are due to expire nationally on Sept. 30.

To help schools, the district is offering one-time budget assistance.

This year, the district received about $8 million in budget assistance requests, about half of which will be funded, Carpenter said.

The typical reasons for such assistance can vary — from funding cliffs to addressing at-risk or marginalized student populations and school size, as smaller campuses often face difficulties absorbing additional costs compared to larger schools.

But the cuts are coming.

Already, schools have begun announcing teacher layoffs for next year.

And students aren’t happy about it.

On Monday more than 100 students at Denver School of the Arts walked out of class in protest over teacher layoffs and the way the school administration has handled a $482,000 budget shortfall.

DSA is a sixth through 12th grade campus, in which students can major in 11 programs, including creative writing, theater and dance, among others, according to the school’s website.

Part of the dissatisfaction with the cuts — called “Reduction in Building” or RIB — is that the process is supposed to include parents and teachers, not just administrators, on the Collaborative School Committee.

Under state statute, every school in Colorado is required to have a School Accountability Committee, which Denver Public Schools calls “Collaborative School Committees” or CSC.

These committees are tasked with providing guidance, evaluation and recommendations to the principal or instructional superintendent on spending priorities, a school’s turnaround plan (if required) and work to increase family engagement, among other things.

As of Friday, two schools — DSA and Kunsmiller Creative Arts Academy — had filed grievances with the Denver Classroom Teachers Association about the RIB process not being followed, said Angelina Reed, a spokeswoman for the teacher’s union.

The teachers’ union represents nearly 4,000 educators throughout Denver Public Schools, or about 70% of district staff.

Kunsmiller is a K-12 magnet school in southwest Denver with 789 students pursuing creative and artistic careers, according to the school’s website.

The school faces a roughly $632,000 budget short fall, said Tami Matthews, a Kunsmiller parent and CSC committee member.

The district has 10 school-days to communicate the decision, Reed said. If this fails, the union can request arbitration. 

On Thursday, the Kunsmiller Collaborative School Committee also sent a cease-and-desist letter to the district and state education department, demanding that Denver Public School stop the RIB process until the school complies with Colorado laws and the union’s teacher contract.

“We have attempted to be a collaborative part of our school community, but have been met with repeated hostility, retaliation to our members, and obfuscation bordering on deliberate attempts to deprive us of the necessary information to perform our statutory function,” the letter says.

“I think the issue is not only are they violating the law, but they’re not even participating in the spirit of the law,” Matthews told The Denver Gazette on Friday.

Matthews added: “For us, these cuts aren’t just cutting to the bone, they’re amputations.”

Kunsmiller Principals Lindsay Erikson and Chuck Puga did not respond to a phone call and email seeking comment.

School leaders, Carpenter said, began developing their campus budgets for the upcoming year in late January and early February.

In terms of timelines, district officials will present the proposed budget for next academic year to the board of education in May. A final board vote of the budget is required by June 30.