Budget Stabilization Factor (Negative Factor)

In FY 2009-10, Colorado’s legislature created a new factor in the school finance formula due to the Great Recession and economic downturn that put pressure on the state’s budget. The factor is a state budget tool that proportionally reduces the amount of total funding for each school district.  The factor reduces state aid to districts.

Fourteen Years of Budget Stabilization by District -2009 to 2023 (Inclusive of Budget Stabilization Factor, Negative Factor, and Mid-Year Recissions)

Colorado’s legislature has renamed the factor over the years:

  • FY2009-10: new factor. HB10-1369 created the new factor.
  • FY2010-11: State Budget Stabilization Factor.  The Federal Government awarded Federal ARRA (American Recovery and Reinvestment Act of 2009) Funds and Education Jobs Funding which reduced the State Budget Stabilization Factor’s impact to school districts for that year.  SB11-230 changed the name of the new factor to the Negative Factor and extended the factor indefinitely.
  • FY2011-12 to FY2016-17: Negative Factor
  • FY2017-18 to present: Budget Stabilization Factor (aka BS Factor)

Information regarding school district budget cut conversations is available on the District Budget Cut Discussions page.

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