A newly appointed Mill Levy Override Advisory Committee has been tasked with deciding how Denver Public Schools should spend more than $40 million in additional revenue, should voters approve the tax hike in November.

The district received about 30 applications and accepted nine for the committee, said Scott Pribble, a DPS spokesperson. The group represents a cross-section of education stakeholders, with notable representation from philanthropy and system leadership.

Members will hold six public meetings starting next week to gather input from the community.

The committee is expected to draft a recommendation that will be presented to the board of education in June.

DPS currently collects $288.6 million annually in mill levy override revenue, according to the district. If voters approve the measure in November, the override would increase the tax rate in Denver from 29% to 30%, resulting in the average homeowner paying an additional $71 annually, according to DPS.

This would raise the total collected from voter-approved overrides to $332.6 million.

Of the roughly $43.9 million raised, $33.7 million would benefit district-run schools and $10.2 million would go to charters, officials said.

Needs identified by the district include: staff incentives for hard-to-fill roles and a “cost of living” gap. Last year, the teachers’ union reached an agreement with the district to seek an increase in educator pay through a ballot measure after being denied their full cost-of-living (COLA) increase in 2024.

Officials also pointed to a familiar financial challenge: declining enrollment and the subsequent loss of funding.

As previously reported, a Denver Gazette analysis of the district’s audits found DPS has operated with a negative unrestricted net position for at least two decades, reflecting long-term liabilities that limit the district’s financial flexibility. The district increasingly relies on local taxpayers for its funding, with state support having declined over that period.

Local property taxes are not tied to enrollment. But the district has made enrollment a central issue in its growing financial woes.

Superintendent Alex Marrero has repeatedly warned that enrollment losses — which reduce state funding — are outpacing what school closures alone can address, adding pressure to the district’s already tight budget.

‘Support is expensive’

The mill levy override discussion comes 18 months after district officials promised voters that passing a nearly $1 billion bond would not raise taxes.

Denver voters overwhelmingly approved the largest bond measure in Denver’s history: $975 million in 2024. The bond package included $83 million for safety and technology; $240 million to equip 29 schools with air conditioning; and $301 million for “critical maintenance.”

Had Denver voters rejected the bond measure, the taxpayers would have saved about $20 million a year as previous bonds mature, DPS Chief Financial Officer Chuck Carpenter has said.

DPS already generates more than 25% of its core funding through voter-approved tax overrides.

State law caps the amount a district can raise through an operating mill levy override — up to 25% of its total program funding.

Revenue from this voter-approved override can support teacher pay and school programs but cannot be used for capital construction, which is funded through bonds.

The proposed tax increase comes as the district faces mounting financial pressures.

Denver voters have approved three overrides since 2012, with the latest in 2020, a $32 million mill levy to help hire more school nurses and pay for teacher pay raises and hourly workers like bus drivers and custodians.

Denver homeowners will already pay more in school taxes next year, even though DPS slightly lowered its overall tax rate. This is being driven by rising assessed home values

The district can adjust only a small portion of its total tax rate each year. In practice, the changes in a property’s assessed value are what most often determine whether a homeowner’s tax bill goes up or down.

Some people spoke in support of a mill levy override at Wednesday’s board of education meeting during public comment.

Michelle Horowitz was one of them.

A speech language pathologist, Horowitz said students returning from the COVID-19 pandemic are showing up with more complex needs.

“They’re not fitting into the box and they need more support,” said Horowitz. “That support is expensive.”

Horowitz is a former bargaining co-chair for the Denver Classroom Teachers Association, which represents about 4,000 educators across the district.

The earlier commitment to not raise taxes remains a point of tension as the district returns to voters.

“I think that we’re so underinvested that they should have never committed to that,” Horowitz said.