Senate approves education plan

DENVER - Gov. Bill Ritter’s proposal to freeze property tax rates for schools is headed back to his desk after it squeaked through the Senate on Tuesday by two votes.

Debate on the floor mirrored last week’s House discussion, which centered on whether Senate Bill 199 amounts to a tax increase. Again, Democrats brushed off the disputed opinion of Attorney General John Suthers that a statewide vote is needed to enact the plan and said the plan is needed to stabilize school funding and improve Colorado education.

“It’s for the children, damn it. And by God, let’s cast a vote for future generations of Coloradans,” Sen. Bob Hagedorn, D-Aurora, told lawmakers.

The proposal would freeze property tax rates that otherwise would continue a 13-year decline in 142 of the state’s school districts, raising $50 million next year and $1.7 billion over the next decade.

Thirty-three districts would get a tax-rate cut next year, and three districts that have not voted to freeze rates would be unaffected.

The revenue would stay with local districts and reduce the amount the state needs to contribute to each, freeing up money in the state budget for things other than kindergarten through 12thgrade education. Some money also would go to the 11 school districts that get the lowest per-pupil funding, including Cheyenne Mountain, Falcon, Widefield and Cañon City.

Ritter’s attorney and the Office of Legislative Legal Services have said it is not a tax increase and does not have to be approved by voters. Suthers said last week, however, that it is a substantial change in tax policy and that enacting it without a vote would violate the state constitution.

Sen. Steve Johnson, R-Fort Collins, added Tuesday that the bill is unlawful because any measures for raising revenue this year must initiate in the House. Sen. Sue Windels, D-Arvada, said the measure does not raise revenues but changes a glitch in 1994 school-finance policy that requires tax rates to continue declining.

Sen. Shawn Mitchell retorted that almost none of the new revenue will go to schools. It will help the State Education Fund from becoming insolvent and will stop the transfer of money from the general fund to education, allowing more general-fund money to go to other programs, he said.

“This policy does not fund schools,” Mitchell, R-Broomfield, said. “It saves legislators from having to prioritize schools in our regular budget.”

Democratic Sens. Paula Sandoval of Denver and Ron Tupa of Boulder joined with Republicans in opposing the plan, but it still passed by an 18-16 margin. Sen. Dave Schultheis, R-Colorado Springs, is at a conference in Washington, D.C., this week and was absent for the vote.

Senate Minority Leader Andy McElhany, R-Colorado Springs, said no one has spoken to him about filing a lawsuit against the measure, but he “would almost guarantee” one is coming.

CONTACT THE WRITER: (303)837-0613 or ed.sealover@gazette.com