Denver Public Schools Pushes $44M Tax Hike on Voters

A Growing Financial Burden for Denver Taxpayers

In a move that has drawn immediate attention from local taxpayers, the Denver Public Schools (DPS) board has unanimously voted to place a $43.9 million mill levy override on the upcoming November ballot. If passed, this measure would authorize the district to collect additional property tax revenue, further increasing the financial obligations of Denver homeowners who are already grappling with significant tax hikes.

According to district figures, the DPS portion of property tax bills for a typical single-family home has surged by nearly 54% since 2020, climbing from $1,480 to a projected $2,276 in 2026. This latest request for $43.9 million annually is aimed primarily at funding employee raises, a move the district claims is necessary to remain competitive. However, for many residents, the timing of this request is particularly sensitive, coming less than two years after voters approved a massive $975 million school bond.

The Shift in School Funding

The reliance on local property taxes to fund public education in Colorado has undergone a dramatic transformation over the last two decades. Data from district audits reveals that in 2005, roughly 58% of DPS revenue was derived from local property taxes, while the state provided about one-third of the funding. Today, that dynamic has shifted significantly: the state’s contribution has dwindled to approximately 17%, while local property taxes now account for roughly three-quarters of the district's total revenue.

This shift is largely a byproduct of Colorado’s complex school finance formula. As local property values rise and tax collections increase, the state’s mandatory contribution to the district decreases. This structural reality, combined with the limitations imposed by the Taxpayer’s Bill of Rights (TABOR), has forced school districts across the state to turn to voters repeatedly for mill levy overrides and bonds to maintain operations and fund salary increases.

Accountability and Transparency Concerns

For many in the community, the constant cycle of tax requests is becoming unsustainable. When the $975 million bond was presented to voters in 2022, officials suggested it would not increase the district’s tax rate. Yet, as property values have continued to climb, so have the actual dollar amounts paid by homeowners. The cumulative effect of these increases has left many residents questioning the long-term fiscal strategy of the district.

As the district faces a tighter budget, officials have pointed to shrinking state support as the primary culprit. However, critics argue that the district must prioritize fiscal responsibility and transparency before asking for more money from a public already struggling with inflation and high housing costs. You can learn more about how these local fiscal policies impact your community by visiting our Education and Economy sections.

Looking Ahead to November

As the November election approaches, the debate over the $43.9 million override is expected to intensify. Supporters argue that the funding is essential to retain quality educators and staff, while opponents emphasize the need for the district to live within its means. With the average Denver homeowner facing an additional $72 annual increase if the measure passes, the decision will ultimately rest with the voters.

This situation serves as a stark reminder of the challenges facing taxpayers in urban centers across the West. As local governments and school districts continue to seek new revenue streams, the conversation around fiscal accountability and the true cost of public services will remain a central issue for voters. For more updates on local government and fiscal policy, stay tuned to our America First coverage.