Douglas County school officials highlighted strong academic performance, ongoing financial pressures and plans for school consolidation during the district’s annual State of Douglas County School District address Monday.

Superintendent Erin Kane said the district continues to outperform neighboring school systems while navigating funding constraints tied to Colorado’s school finance formula.

“Tonight, I’m going to tell you a little bit about the state of our district, what we’ve been able to accomplish over the last year, and what we’re looking forward to in the future,” Kane said during the presentation.

District officials reported Douglas County School District posted the highest academic scores in math and literacy in the Denver metro area. Kane said the district’s graduation rate rose to 93.6% this year, up from 92.2% last year, marking the highest rate in Colorado among large school districts.

Despite being one of the highest-performing academically, the district has one of the lowest education tax rates in the Denver metro area, Kane said, creating pressure to stabilize revenue over the long term.

“This is one of the reasons our school district is always so squeezed,” Kane said.

Kane said the district faces a projected $15 million budget gap by the 2027–28 school year, driven by a broader state budget shortfall estimated at more than $1.2 billion. Compared with neighboring districts, however, Kane said Douglas County’s financial position remains relatively strong.

“Some of our neighbors are in much worse condition,” Kane said.

To address the anticipated shortfall, the district is making efforts to reduce the budget and increase funding revenues. 

The school board is currently discussing whether to place another mill levy override before voters in 2026. The proposed override, still under development, would generate about $54 million annually to support salaries and student programs.

Kane said the measure could fund a 4% salary increase to bring pay closer to market levels, expand career and technical education, restore elementary instrumental music and enhance services for students with special needs.

Kane emphasized the impact of earlier voter-approved measures, including a 2023 mill levy override that funded student programs, additional school resource officers and a 9% salary increase for teachers and staff. District officials said those investments contributed to improved math and literacy performance, reduced staff turnover and greater competitiveness in hiring.

“That’s a clear return on taxpayer investment,” Kane said.

Teacher compensation remains an ongoing challenge, Kane said, noting district salaries are still below market rates. She said the district has narrowed its pay gap from about 20% below market to roughly 7% below market, though challenges remain.

“We would finally go from being under the market to being in the market,” Kane said. 

The district’s average teacher salary is about $75,777, lower than neighboring districts such as Cherry Creek and Littleton. Starting teacher pay in Douglas County is about $51,914, compared with roughly $62,000 in Cherry Creek.

“When the 2023 mill levy override passed, we almost doubled our dollars per student,” Kane said. “But it’s still significantly less than some of our neighbors, and we compete with our neighbors for staff.”

Voters also approved a bond measure in 2024 by nearly 60%, enabling the district to construct new schools for the first time since 2010.

As part of its long-term planning, the district announced that three new elementary schools are scheduled to open for the 2026–27 school year, consolidating six existing campuses. Heritage, Summit, Eldorado, Acres Green, Fox Creek and Saddle Ranch elementary schools will be merged into Golden Ridge Elementary, Mountain Peak Elementary and Silver Spruce Elementary.

“We’re really excited to be able to introduce our three new schools to you,” Kane said.