Mill Levy Plan Clears House, Attorney General Issues Opinion

From the online version of today’s Post:

…the House of Representatives this morning approved the property-tax freeze as part of the School Finance Act, which now goes to the Senate.

The plan, as tweaked by Ritter and adopted by the House, calls for cutting rates in the 33 highest-rate districts to $27 per $1,000 of taxable property value and locking rates at current levels in 142 other school districts.

Meanwhile, AG Suthers issued a legal opinion on the measure, from the same article:

Republican Attorney General John Suthers weighed in this morning on the governor’s proposal to freeze property taxes as a means of boosting money for schools, arguing that change must be put to voters.

In a letter sent to Democratic Gov. Bill Ritter, Senate President Joan Fitz-Gerald, D-Jefferson County and House Speaker Andrew Romanoff, D-Denver, Suthers said he concurs with an analysis he asked the Solicitor General to perform that concludes “that the best reading of the Colorado Constitution requires that a revision of this sort, which will have the direct effect of raising the property tax burden of many taxpayers in the state, be submitted to voters for approval.”

That finding is at odds with two other legal reviews.

Ritter’s chief counsel, Thomas Rogers III, has stated that the property-tax freeze is not a tax increase that would require the approval of voters. The Office of Legislative Legal Services has reached a similar conclusion.

In a written statement, Gov. Ritter said Suthers’ “unsolicited and 12th-hour opinion, is flawed, and his timing is suspect.”

He said his plan stands on solid Constitutional ground.

To read excerpts of the opinion from the Office of Legislative Legal Services HERE.

To read the opinion of AG Suthers, click HERE.

What do you think?

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Daily Camera Supports Mill Levy Stabilization

From today’s Daily Camera:

Ritter, the newly elected Democrat, is taking a second stab at stabilizing school funding. He first floated the idea of freezing property-tax rates several weeks ago, but the talk of “tax increases” shot it down.

Now Ritter is trying again, this time suggesting that property-tax rates be cut in 33 districts and be frozen in 145 others. He is armed with a new advisory opinion from the non-partisan legislative legal staff, which concludes that Ritter’s proposal “clearly does not constitute a new tax, tax-rate increase, mill levy above that for the prior year, valuation for assessment ratio increase for a property class, or extension of an expiring tax.”

[...]

In a recent statement, Ritter noted that failing to act would mean that the State Education Fund will be broke by 2011. “As a result, every corner of the state budget not protected by the Constitution or a federal mandate – every service provided to the people of Colorado – will suffer. This includes higher education, health care, human services and the courts.”

We’ve just traveled that road. And since the voters have already given their consent, it’s hard to imagine why we wouldn’t shift course.

A few other papers agree.  What do you think?

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Ritter Brings Back Education Funding Proposal

Gov. Ritter has asked the legislature to bring back a revised proposal to stabilize mill levy rates so that we can stop the education funding freefall in Colorado.

From this morning’s Post:

The new plan reduces property-tax rates in 33 districts while locking rates at current levels in the remaining 145 districts.

The proposal would let school districts keep an extra $55 million, relieving the state from stepping in to pick up some of costs from local school districts.

“This is a way to address inequities in school districts that are suffering under exorbitantly high tax rates,” said Evan Dreyer, spokesman for Ritter.

[...]

Still, Republican lawmakers expressed wary skepticism about the new plan.

“This is putting lipstick on the pig,” said Rep. Cory Gardner, R-Yuma. “I think this is a tax increase. Gov. Ritter is using a paintball-gun approach where he is firing the gun at the wall to see where the splat goes.”

Take a moment to sign our letter to the Senate.

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Greeley Tribune Supports Education Funding Reform

The Greeley Tribune pushes the legislature to revive the mill levy stabilization proposal so that we can stop the education funding freefall.

From the opinion page of today’s Greeley Tribune (login required to view article link):

FUNDING HELP NEEDED FOR SCHOOLS

Tinkering with school funding without first taking some feel-out political laps is about as fruitful as getting under the hood of a NASCAR racer without the pit crew’s permission.

That appears to be the lesson of Gov. Bill Ritter’s recent foray into school funding, the state’s largest annual expense.

With fanfare at a mid-March press conference, Ritter announced his support for a measure that would provide $84 million annually to K-12 education. Most of the money from the proposal — $65 million — would be generated by stabilizing local mill-levy rates used to determine property taxes. That amount would be spent on full-day kindergarten and would help prevent the State Education Fund from slipping toward insolvency, Ritter said.

The measure, of course, is controversial. Many lawmakers view the stabilization of mill levies as essentially a tax increase. As property values rise, regardless of a frozen mill rate, taxes will correspondingly go higher, they argue.

So when the proposal came before the Senate last week, lawmakers booted it out of the School Finance Act. Senate Bill 199, without the property tax measure, passed the Senate on a 34-0 vote last week.

It’s unfortunate the proposal appears headed from stall to fall — before it moves to the House, lawmakers are awaiting an opinion from legislative counsel about the legality of the measure — because it’s clear the school funding system is in need of a fix.

Take a moment to read Great Education Colorado’s Legislative Agenda.

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Ritter to Remedy Education Funding Freefall

From the AP on March 13:

“NORTHGLENN, Colo.- Gov. Bill Ritter unveiled a plan Tuesday that would block a projected drop in residential property taxes in all but two of the state’s 178 school districts to provide an additional $84 million for public schools.

“Ritter said the plan is legal and does not violate the Taxpayer’s Bill of Rights-a constitutional brake on tax increases-because it applies only to school districts where voters have agreed to relax TABOR’s limits to support schools.

“Ritter wants to use the money to provide preschool programs, full-day kindergarten and provide more money to school districts.

” ‘Investing in our children is one of the most important things we as government leaders can do,’ Ritter said, flanked by a group of elementary school children in this north Denver suburb.”

Predictably, the far right responded with the same myopic talking point.  From the March 13 article in the Post:

” ‘Let me make it very clear: That’s called a tax increase,’ said Jon Caldara, president of the Independence Institute, a think tank based in Golden. ‘If taxes were going to go down and action is taken to prevent them from going down, that s a tax increase. Get used to it. Democrats are in control. This is the first of many.’ “

Hmmm, “a think tank based in Golden? ” Curious that there is no mention of Caldera’s ultra-conservative agenda.  As Colorado Media Matters pointed out:

“A March 13 Denver Post article by Mark P. Couch noted Independence Institute president and anti-tax crusader Jon Caldara’s criticism of Gov. Bill Ritter’s (D) school finance proposal, but it failed to identify the Independence Institute as a ‘free-market, pro-freedom’ conservative policy research organization.”

The real issue, of course, is the condition of our schools.  That’s why it’s so important for us to make our voices heard in this discussion!

Click “There’s more” to read the full press release from the Governor Ritter’s office.

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Rocky: Gov. Ritter’s Proposal “too clever”

The Rocky and the Post, not surprisingly, are at odds over Ritter’s education funding proposal.

From today’s Rocky:

“According to our copy of the Taxpayer’s Bill of Rights – and we’re pretty sure it’s the same one used over at the state Capitol – voters must approve ‘any new tax, tax rate increase, mill levy above that for the prior year . . . or a tax policy change directly causing a net tax revenue gain to any district.’

“Take another look at that last phrase: ‘a tax policy change directly causing a net tax revenue gain to any district.’ Isn’t that what Gov. Bill Ritter proposed early this week as a means of shoring up the state education fund?

“[...] Administration officials disagree that this violates TABOR. They argue that voters already approved the change, at least indirectly, when most school districts lifted TABOR spending caps. It’s an interesting argument, and maybe the courts will even buy it. But the mechanism advocated by the governor still has the appearance of a too-clever technical trick.”

So, while the proposal is likely constitutional, we should oppose it because it is “too clever”?

The Post ran their own editorial in support of Gov. Ritter’s proposal.  They do an excellent job of pointing out why this proposal respects the wishes of the voter:

“Critics of Gov. Bill Ritter’s plan to expand preschool and kindergarten programs by ‘freezing’ school property taxes are insulting the intelligence of local voters – most of whom have already [Denver Post emphasis] approved just such a freeze.

“Anti-tax fanatic Douglas Bruce was quick to assail Ritter’s plan to hold property tax rates steady as a ‘tax increase,’ based on his familiar claim that failure to cut taxes every year is the same as increasing them.”

Unfortunately, both editorials fail to talk about what’s happening in our schools and why this proposal is so critical.

It’s up to you (yes, you!) to tell the story of what’s happening in our schools.

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Attorney Concludes Gov. Ritter’s Education Funding Proposal Doesn’t Violate TABOR

A positive development for Gov. Ritter’s plan to create full day kindergarten and stop the education funding freefall.

From yesterday’s Gazette:

“Gov. Bill Ritter’s attorney said Wednesday that the governor’s plan to freeze property-tax rates for increased educational funding is legal, but the opinion might not be enough to save the proposal.

“Ritter unveiled the plan at a news conference last week, proclaiming that the tax-rate freeze would raise an extra $65 million a year for full-day kindergarten. It also would stabilize the State Education Fund enough to provide 4,000 more preschool slots for atrisk kids and $12.6 million a year more for the 11 school districts that receive the lowest per-pupil funding.”

What do you think?  Do you think, given this opinion, that Democrats should re-introduce Gov. Ritter’s proposal?

Click “Discuss” and take our online poll…

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Harsanyi Misses the Point

David Harsanyi takes a narrow focus on Gov. Ritter’s plan to stop the education funding freefall.

From today’s Post:

“Perhaps. But if 2000′s perpetual tax increase for education, Amendment 23, and Referendum C (with tons of extra cash!) aren’t enough, why not ask Coloradans if they think another tax hike is in order?

“Make sure to call it ‘evenue stream enhancement’ to soften the blow.

“You’ll be fine.”

Not once does he mention that voters in 174 out of 178 of these districts has already approved this stablization.

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Ritter Proposes Increase in K-12 Funding

The budget process is a little tricky this year because of the gubernatorial transition. There is some glimmer of hope for increased education funding.

From The Bell Center’s Budget Watch:

” ‘It’s an Owens budget, but they made some changes,’ said Gil Romero, the Bell’s lobbyist working on JBC spending issues. The Ritter administration has ‘made some pretty strategic decisions on the budget. The overall percentage change is not that much, but the changes are strategic. They wanted to make some different value judgments.’

“The Ritter changes include:

“[..]$41 million in added funding for K-12 public schools to deal with an enrollment increase of 8,000 students. Ritter also proposed shifting another $58 million in funding toward K-12 education, for a total of $99 million.”

While this sounds like a lot of money. We’re still tens of millions of dollars behind. We’re still very early in the budget process, a lot of things can happen in the next couple of months.

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