As students head to their first day of classes on Tuesday, Littleton Public Schools (LPS) has made immediate cost-saving measures to address a $10.6 million budget deficit.

This is due to factors such as declining enrollment, budget constraints and rising costs.

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Littleton Public Schools addresses budget deficit with wage freeze, furlough day

LPS narrowed the budget gap by $10.6 million for the 2026–2027 school year through a combination of structural cuts, operational savings and temporary measures:

• $1.1M in central office staffing reductions
• $2.8M in district department operating cuts and restructuring
• $5.4M in General Fund savings by strategically shifting qualifying expenses to the Ops/Tech fund
• $500K in eliminated non-recurring expenditures
• $3.3M from the temporary employee wage freeze ($2.5M) and furlough day ($800K)

District leaders emphasize there aren't any noticeable changes inside the classroom.

“Families and students should experience a seamless return to school. LPS leadership worked deliberately to ensure that budget adjustments remain outside of the classroom, with things like school-level staffing, class sizes, academic programs, supplies, and student support services remaining intact,” Littleton Public Schools chief communications officer Maggie Hesketh said.

The changes are behind the scenes, mainly when it comes to employee pay and the district calendar. 85% of the district’s budget goes towards employee salaries and benefits.

“For the 2026–2027 school year, cost-of-living adjustments and step increases are currently on hold across all employee groups, saving the district approximately $2.5 million,” Hesketh said.

There’s also a district-wide furlough day on March 19, when schools will close and employees will take an unpaid day. LPS said that saves another $800,000.

“By sharing this burden across all employees, the district was able to preserve the equivalent of more than seven full-time teaching positions,” Hesketh added.

LPS told Denver7, district leaders recognize compensation freezes pose long-term risks to recruitment and retention in a competitive regional market.

“The only concern is teachers going to other school districts that may be paying better and not having furlough days,” Kathryn Angelo, a Littleton Public Schools parent, told Denver7.

One potential solution to help with budget deficit issues now and in the future is a $10 million mill levy override, or MLO.

“Maintaining competitive pay is one of the primary reasons the Board of Education is considering an MLO, ensuring LPS can continue to recruit and retain high-quality teachers and staff,” Hesketh said.

If voters approve it, LPS said it could restore the employee wage freeze and eliminate that furlough day.

“As negotiated with our employee association, the proposed compensation package, including the one-step advancement for licensed teachers and a 2% on average salary increase for classified and administrative staff, is contingent upon voter approval of a mill levy override (MLO). If voters approve an MLO in November, these compensation adjustments will be reinstated retroactively to the start of the contract year,” Hesketh said.

The district said this would also help retain teachers, maintain strong academic and career programs, and keep school buildings safe and secure. By doing so, it would increase property taxes.

The district estimates that if voters approved the MLO in November, it would cost homeowners $25 for every $100,000 of home value every year.

The school board votes Thursday on whether or not to put the MLO on the November ballot.

“Littleton Public Schools is doing their best and I think we need to support them,” Angelo said. “I think it is a good way if people are already living here and wanting to support their community to be able to help with property taxes to support the schools.”

The district warns without additional funding, furloughs could become more common in an effort to save money.

“If financial constraints persist in future years without additional local revenue, furlough days remain one of the few administrative tools available to cut costs,” Hesketh told Denver7.