Colorado Schools Are Losing 16,000 More Students. Impact Development and taxpayer-subsidized mortgages -- a minor correction and a note
Colorado Schools Are Losing 16,000 More Students.
And yet there’s a ballot measure saying we need more money to go to schools.
The video linked below is a great one on the basics of not only school funding but also the expected drop in enrollment that Colorado schools are projected to see this Fall.
From the video’s description, the hosts cover the following:
-Why Colorado is projected to lose 16,000 students
-How does the School Finance Act determines funding?
-Why declining enrollment doesn’t always mean immediate funding cuts?
-How do districts plan their budgets?
-What parents should (and shouldn’t) expect this school year.
-What’s still changing in Colorado’s education funding formula?
So wherever you are on the spectrum of knowledge about schools and funding, whether someone who’s at the intermediate level or a beginner, this video is worth a watch.
I say this particularly with regard to having discussions with those in your circle about the upcoming ballot measure to end your TABOR refunds to (at least partially and at least for a bit) redirect your money to “schools”.**
Whatever your opinion is on school financing and/or any referenda, take the time to make it an educated one.
**This is about as close as I can get to where the money goes. There are few prescriptions on where your refunds would go.
Related:
Wondered where the graph heading this post was from? Want another take on the issue and/or more context (particularly with regard to some good news about graduation/drop out rates)?
All this and more in the Gazette article below.
https://gazette.com/2026/01/13/as-public-school-enrollment-continues-decline-graduation-and-dropout-rates-improve/
Impact Development and taxpayer-subsidized mortgages -- a minor correction and a note
The first link below is to a newsletter from March of this year. I wrote about, among other things, a novel state law that had the State Treasurer giving up to $50 million out of the state public school fund to a self-described (see the second link) "nonprofit, community development financial institution (CDFI)" named Impact Development.
Note: if you'd like to read up on what CDFI's are in general, see the Wikipedia explainer linked third below. In short, it's a bank that is mission-driven to loan to people that other banks won't and/or to loan to people at rates others won't.
Specific to Colorado, the law I delve into in that March newsletter authorizes a transfer of money out of the state treasury to Impact Development as seed money to loan out to rural educators for below market rate (3.5%) mortgages.
As those with the mortgages pay back their loans, Impact pays the state back. At the time, I had some questions about this program, but not the time to delve into them. Quoting from that earlier newsletter:
"When I read about making it easier for 'rural' educators to buy houses, I can't help but wonder whether this is mainly for the mountains. ... Using Public School Fund money for this makes me wonder what else it was being used for and what gets shorted to make this happen. Perhaps that's a good trade, perhaps not. Further, even if it is a good trade, putting it into mortgages ties it up for a while. What do we do in the meantime? ... What if it [the loan program doesn't go to plan]? What if people default? Does the Public School Fund take the loss? Does Impact Development Fund? Further, what is Impact's cut?"
I have the time now to try and get answers to those questions. In order to get them, I wrote the Colorado State Treasurer's Office as well as Impact Development, asking whether and how much money has moved, to where it's gone, who eats the loss if there's a default, and for a copy of any contracts.
This is where things took an interesting turn. Impact would not go on the record, but the state treasury would. A spokesperson told me the following via email (quoting):
"The Colorado Sun article was written without our input and does not accurately reflect how the Colorado Department of the Treasury is moving forward. The proposal involving the Impact Development Fund is just one potential option to satisfy the statutory requirements of SB 25-167. It has not yet been formally considered nor approved by the Public School Fund Investment Board (PSFIB).
The PSFIB is currently in the early stages of designing a framework for the rural homeownership program that aligns with state statutory guidelines. The Board hopes to review proposals this fall and begin the contracting process in late 2026 or early 2027."
Interesting. So in short, and contrary to the Sun's reporting, the state is working on it, but haven't yet picked their partner.**
I asked to be updated as the process proceeds with regard to my other questions, questions rendered moot by a lack of contract.
In the meantime, this is a great chance to introduce you to another of the boards actually running our state. The fourth link below is to the Public School Fund Investment Board. Per their website, the board is responsible for investing "... funds received from the State School Lands Trust and is dedicated to the support of K-12 education. The PSFIB manages the investments of these funds on behalf of the beneficiaries — the schoolchildren of Colorado."
If you had thoughts about this program or some other thought regarding how the money from the State Land Board is invested, here's what I found.
If you'd like to submit written comments, per their website, you should email them to Matt Miniaci at matthew.miniaci@state.co.us. I couldn't find specific instructions on how to sign up to comment at one of their meetings, but I do know they have a public comment period on every agenda that I could see. Best suggestion for giving comment during the meeting is to email the address above and ask or direct your query to treasurer.young@state.co.us.
I'll continue to follow and have more for you as I hear.
**To be clear, the Sun's mistake here strikes me as one of laziness (one of the first things I like to do when reaching out to someone is to ask if a given statement is true--The Sun clearly didn't do that), and perhaps simple, honest misunderstanding. I allege no conspiracy here, nor attempt to defraud.
https://coloradoaccountabilityproject.substack.com/p/does-affordable-housing-mean-subsidized
https://impactdf.org/
https://en.wikipedia.org/wiki/Community_development_financial_institution
https://treasury.colorado.gov/about-the-treasury/boards-and-committees/public-school-fund-investment-board