Earlier this month, Colorado Springs School District 49 Superintendent Peter Hilts asked the board of education to declare a fiscal exigency in the district – citing flat revenue, declining enrollment, and increased expenses – which will allow for a reduction in programs and staff, including non-probationary, or tenured, teachers. The board voted 4-1 to issue a declaration of fiscal exigency during the Jan. 8, 2026, board meeting, and staff members affected by the planned cuts will be notified no later than January 23, 2026.
In response, the Falcon Education Association (FEA) is calling on D49 to release its full 2025 audit and current-year financial reports, claiming rapidly growing reserves, repeated revenue underestimation, and misleading claims about enrollment and funding. According to the FEA, audited financial data shows that the district has underestimated revenue by over $30 million each year for the past three years and has seen reserves grow significantly during that same period.
“We believe fiscal responsibility starts with putting students and families first,” said Rachel Connell, president of the FEA and a teacher at Vista Ridge High School, in a news release. “Educators show up every day to provide stability and high-quality learning for students. We expect the district to meet that same standard when it comes to honest and responsible budgeting.”
According to the FEA, D49’s reserves have increased dramatically in recent years. In 2019, the district held 13.8% in reserves. By 2024, reserves had grown to 27.4%. In dollar terms, reserves increased from $17.4 million to $45.3 million.
“Families expect their school district to balance financial planning with real investments in classrooms, not to grow reserves while schools lose educators,” Connell said.
FEA is asking D49 to provide a full 2025 district audit, a first quarter report or a current monthly revenue and spending update for the 2025–26 school year, a transparent explanation of how reserves grew so significantly, evidence that natural attrition, including retirements and turnover, has been fully accounted for and a commitment to work with FEA on budgetary decisions that impact any staff.
“Families deserve stable schools with trusted adults in classrooms,” Connell said. “Unnecessary RIFs [reductions in force] destabilize schools, make it harder to recruit and retain high-quality educators, and ultimately harm students. Declaring a fiscal exigency without full transparency is fiscally irresponsible.”
D49 did not respond to an emailed request for comment.
