Earlier in the session I shared with you the debate under way around a rewrite of the School Finance Act - SB13-213 (Johnston-Hammer). The bill is in its final stages - up for passage in the House, after which it will return to the Senate for them to concur with the version approved by the colleagues in the other chamber. What's next? Pending a signature from Governor Hickenlooper - which is expected, then the debate and discussion around funding the measure - a billion-dollar request of Colorado taxpayers this November - begins in earnest.
A series of different ballot measures that would fund the policy in SB13-213 are winding their way through the state's Title Board process. Both an increase in the current tax rate (from 4.63 percent to 5.35 percent) and several graduated income tax proposals (topping out at 6.9 percent) are under consideration. Each version was filed with what is widely viewed as a pot sweetener for the business community: A freeze of the Gallagher Amendment, which allows the residential assessment rate, as it applies to the school funding portion of local property taxes, to decline from 7.96 (the current rate) to 7.90 percent and to subsequently hold at that level; and capping K-12 funding at 43 percent of the state's General Fund.
Last week Pat Hamill and I had an opportunity to meet with Governor Hickenlooper and Senator Michael Johnston to discuss this issue. As we have noted before, we were clear in stating we do not believe a graduated income tax system is the right choice for Colorado and we would oppose such an effort, regardless of the merits of the proposal. They were interested in our opinion and rationale, but no commitment on how they plan to proceed was provided.
To ensure maximum time to discuss the idea with voters, proponents of the measure will need to begin collecting signatures to place the measure on the ballot quickly. We can expect a decision on which funding model they will choose to occur in the next month to six weeks. Colorado Concern will continue to share our views. Watch this space for updates.
Additionally, one of the questions that has come up in discussions around the policy side of this effort relates to the level of system improvements, accountability and transparency in the new School Finance Act and whether they are substantial enough to justify an additional billion-dollar investment in our K-12 system. We believe that is a topic worthy of discussion, and will schedule time for members to meet with Senator Johnston to raise the issue early this summer.
Should you have questions around this measure, or any other policy issue, please do not hesitate to contact me at tamra@coloradoconcern.com.
Warmly,
Tamra
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