Denver Public Schools is eliminating 38 positions in the district’s central office to save $5 million yearly in a restructuring amid uncertainty about the future of state and federal funding.

In a memo sent to staff Friday, Superintendent Alex Marrero said the changes are needed to ensure the district’s long-term stability and to better carry out the district’s strategic roadmap. He said uncertainty about funding is compounded by declining birthrates and lower enrollment in the state’s largest school district.

“I acknowledge the profound impact this will have on our organization,” he said. “Please know that these staffing decisions were not made lightly, and I deeply recognize the personal and professional challenges these changes bring. To those departing DPS as part of this restructure, thank you for your dedicated service to our students and the Denver community.”

The central office employs nearly 3,000 people.

Marrero said the restructuring — along with a recently implemented central office hiring freeze for nonessential roles — will give the district the flexibility to respond to any imminent changes in funding. He warned that the district must be prepared to make further cuts should “deeper-than-anticipated funding cuts occur at the state or federal level.”

State lawmakers need to cut more than $1 billion to balance the budget. Eighty percent of school districts would be negatively impacted by Gov. Jared Polis’ proposal to implement a new method of calculating school funding, which would send less money to districts with declining enrollment. 

Denver Public Schools initially would be less impacted because it experienced a 2 percent increase in enrollment this academic year. But pockets of the district are losing enrollment. The district will close or restructure 10 schools at the end of the academic year to save an expected $30 million a year. The district is also anticipating future enrollment declines, although it has put a pause on further closures.

Staff members losing their jobs effective July 1 will get a severance package based on the number of years they have worked for the district. 

Many of the changes involve moving staff between different parts of the organization. For example, the student discipline team will move to the office of general counsel. The memo doesn’t specify what positions are being eliminated.

Several positions supporting students of color and culture, equity and leadership will move to a new team called “Accelerated Trajectory.”  

The district’s strategic plan, which runs through 2026, says DPS has only moderately narrowed the gaps between different student groups. The plan has a broad focus on equity such as closing academic gaps, boosting teacher pay, hiring more teachers of color, and expanding career and technical education opportunities and partnerships with communities.