Bill to freeze property tax passes committee

DENVER - Governor Bill Ritter’s plan to freeze property tax rates to increase education funding, finally given a vote after six weeks of discussion, passed out of the House Education Committee along party lines Monday.

Rep. Jack Pommer, D-Boulder, added it as an amendment to his 2007-08 School Finance Act, a bill whose main purpose is to increase the amount of money going to education in kindergarten through 12th grade by 4.6 percent next year. SB199, which was approved 8-5, also ramps up oversight of charter schools in several areas.

But its main provision is a measure to stop property tax rates from falling in 145 of the state’s 178 school districts, a provision expected to generate about $50 million next year and $1.7 billion over the next 10 years. Local school districts would keep the money, and the General Assembly would be able to replenish the dwindling State Education Fund by not having to spend as much money on local districts.

Property tax rates have been spiraling downward since the 1992 passage of the Taxpayer Bill of Rights, which requires such a decrease if property tax revenue increases by more than annual inflation plus the increase in students. But as less local property tax revenue went to fund school districts in growing or wealthy areas, the state has been required to backfill that revenue from its general fund.

“Ironically, some of the poorest school districts have some of the highest property tax rates, and some of the richest have some of the lowest tax rates,” Pommer said.

All of the Democrats on the committee backed the proposal, saying that it will help all departments in the state, not just schools. If the State Educational Fund goes broke as projected in 2011 and the Legislature must take more money from the general fund to pay for K-12 education, that money will have to come at the expense of higher education and other needs, they said.

Republicans accused Pommer of raising taxes and making a substantial change to state tax policy without a vote of the people. Rep. Tom Massey, R-Poncha Springs, tried unsuccessfully to send the matter to statewide voters as an initiative.

Pommer noted that 175 of the 178 school districts have voted to freeze property taxes already but that a glitch in the 1994 School Finance Act prevents them from doing so. Colorado Springs District 11 and Harrison District 2 are two of the three districts that have not.

Although most of Monday’s discussion focused on Ritter’s proposal, the committee made several changes involving charter schools, as well. Democrats reduced from $8.5 million to $5 million the amount going to charter school construction next year, and they also made it easier for school districts to regain the sole authority on allowing charter schools.

Rep. Bob Gardner, R-Colorado Springs, did manage to make one pro-charter change when he reinserted a provision that had been taken out in the Senate allowing charter schools to take over vacant school district facilities without paying rent. Pommer had argued that continuing to allow this practice hurts school districts needing to rent out facilities to make money.

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