Introduction
The 2025 legislative session was overshadowed by a $1.2 billion budget shortfall, which lawmakers addressed through a combination of spending cuts and funding reallocations. To close the gap, the Joint Budget Committee implemented reductions to state agency operations, shifted financial burdens onto local governments, trimmed transportation funding, and authorized more than 80 companion bills. The primary driver of the deficit was a sharp rise in Medicaid expenses—particularly for long-term care services for seniors and individuals with disabilities.
Despite these fiscal challenges, Ready Colorado and its education reform partners achieved a major victory by securing increased K–12 education funding and beginning the implementation of the new school finance formula passed in 2024. House Bill 25-1320, the School Finance Act, begins a phased implementation: 15% of the new formula will take effect in 2025–26, followed by 30% in 2026–27, and 45% in 2027–28. While these levels are slightly scaled back from the original plan to ease pressure on the state budget, the new formula delivers more funding to school districts based on specific student needs. The bill also gradually adjusts the enrollment averaging window—from five years to four in 2025–26, and to three in 2026–27—contingent on stable overall program funding.
Another significant win for Ready Colorado was the passage of House Bill 25-1278, a comprehensive overhaul of Colorado’s school accountability law—the most substantial update since 2009. The bill reaffirms the state’s commitment to annual assessments in reading, writing, and math, ensuring continued transparency and comparability in student performance across schools. Key reforms in HB25-1278 include:
- New college and career pathway indicators on the School Performance Frameworks to better recognize and incentivize high schools connecting students with quality postsecondary and workforce opportunities;
- Expanded interventions and support for chronically underperforming schools; and
- A new statewide data dashboard to provide clear, accessible student outcome data that informs parents, guides policy, and promotes fiscal accountability.
The following section provides a summary of key bills that Ready Colorado supported or opposed, including their projected impact and current status. At the time of publication, several measures await final action by Governor Jared Polis.
Legislation We Supported
HB25-1320: School Finance Act
HB25-1320 implements Colorado’s new, student-centered school funding formula from HB24-1448 over seven years, phasing it in to account for year-to-year state budget changes. It implements 15% of the formula in 2025–26, 30% in 2026–27, and 45% in 2027–28, delivering more funding to school districts based on student factors, but at levels slightly below the original plan to reduce the strain on state funds. The bill also gradually reduces enrollment averaging from four to three years, with changes tied to funding levels and the health of the State Education Fund. Districts with declining enrollment are held harmless to funding levels they received in 2024–25, with a 1% increase. The bill also requires the Joint Budget Committee to annually review costs and create a long-term sustainability plan to ensure stable, predictable funding.
STATUS: Passed both Chambers, Awaiting Governor’s Signature
SB25-315: Postsecondary & Workforce Readiness Programs
This bill is largely a result of the work of the HB22-1215 Task Force, with the goal for high school students to have access to three career-focused outcomes: 1) In-demand industry credential attainment; 2) College credit that is part of a defined postsecondary workforce readiness (PWR) pathway, and; 3) High-quality work-based learning (WBL) opportunities. SB25-315 simplifies and improves how Colorado supports high school programs that prepare students for college and careers, with a focus on helping rural and underfunded districts. It merges four older, complex programs into one streamlined system. The bill creates two main funding streams: the Start-Up Fund (about $10 million) gives all districts automatic funding for three years to launch or grow programs that offer college credit, career credentials, or hands-on work experience, then transitions into a long-term support source based on student performance. The Sustain Fund (about $14 million) replaces the ASCENT program and rewards schools based on real student outcomes—like earning college credits, obtaining industry certifications, or completing work-based learning. It is a practical step toward making sure more schools can access funding to help students succeed after graduation.
STATUS: Passed both Chambers, Awaiting Governor’s Signature
HB25-1278: Education Accountability System
This bill provides a comprehensive update to Colorado’s school accountability system, while reaffirming the state’s commitment to annual assessments in reading, writing, and math. This ensures continued transparency and comparability in student performance across schools. The bill brings needed enhancements to the system by creating new indicators to recognize high schools that are successfully connecting students with college and career pathways, and it kickstarts the development of a new statewide data dashboard—one that’s actually easy to understand and can help guide decisions by families, policymakers and education leaders
STATUS: Passed both Chambers, Awaiting Governor’s Signature
HB25-1135: Communication Devices in School
This bill requires all charter schools and local school boards to establish and publicly post policies regulating student use of communication devices during school hours by July 1, 2026, with exceptions for disabilities, medical needs, emergencies, and instructional purposes by August 31, 2025.
STATUS: Signed into law by the Governor
SB25-167: Invest State Funds to Benefit Communities
The bill provides increased support and flexibility for Alternative Education Campuses (AECs). The bill directs the Colorado Department of Education (CDE) to give AECs priority points when awarding state education grants, increasing their access to funding. It also allows AECs to include high-risk students—specifically those aged 21 or younger who are pregnant or parenting and on track to graduate—in their official enrollment counts for funding purposes. Additionally, the CDE must publish an annual report on AEC enrollment trends, student demographics, and mobility to provide transparency and inform future policy. The bill protects AECs with fewer than 250 students from losing their designation due to enrollment fluctuations for a single school year.
STATUS: Passed both Chambers, Awaiting Governor’s Signature
SB25-086: Protections for Users of Social Media
SB25-086 aimed to give law enforcement the tools to crack down on online child sex trafficking and fentanyl distribution, earning support from all 23 Colorado District Attorneys. The bill required social media companies to uphold the law by removing drug dealers and sex offenders from their platforms and cooperating with law enforcement investigations. Despite Big Tech’s claims of censorship, the bill focused solely on stopping illegal behaviors and criminals who exploit kids online. The Senate voted 29-6 to override Governor Polis’s veto, but the House declined to take up the override—ensuring the fight to protect children online will continue in future sessions.
STATUS: Vetoed by the Governor. The Senate passed the veto override 29-6. Veto override laid over in the House.
Legislation We Opposed
HB25-1037: Income Tax Credit for Eligible Teachers
This bill would have offered a refundable income tax credit of $1,000 for full-time teachers or $500 for part-time teachers in public schools for classroom expenses. However, at the prime bill sponsor’s insistence, the bill excluded non-licensed charter school teachers. For that reason, Ready opposed the bill.
STATUS: Died on the House Calendar