Monday, April 16, 2007

Lawmakers to discuss school finance bill

Discussion will center on governor's proposal to freeze property tax mill levies.



By CHARLES ASHBY

CHIEFTAIN DENVER BUREAU



DENVER - Lawmakers will be discussing the $5.1 billion school financing measure this week, including a controversial proposal to freeze school districts' property tax rates.



That proposal, backed by Democratic Gov. Bill Ritter and supported by the two legislative sponsors of the annual School Finance Act, is designed to help shore up the state's main education funding account, which is expected to become insolvent by 2011.



The plan, which is to be tacked onto SB199 when it comes before the House Education Committee next week, is designed to free up about $55 million in state aid to education.



Republicans and Democrats alike have been criticizing the idea, saying it would have the effect of increasing residential homeowner's taxes because they would end up paying more as their property values increase.

Actually, homeowners' pay more property tax any time the value of their property goes up.  TABOR limits the increase, but doesn't stop it.  The proposal to stabilize the local share of school funding would only apply to districts where voters have exempted the school tax from TABOR's revenue limit.

Still, Rep. Jack Pommer, D-Boulder and the House sponsor of the bill, said he expected to tack some sort of amendment onto the bill to address the tax freeze.



He said, though, that he's not sure if it will mirror the governor's latest plan to place a ceiling on property tax mills to 27, which would lower tax rates in 33 mostly rural counties. Twelve of them are located in Southern Colorado, including Pueblo County, which is at about 29 mills, and Baca schools. At 37.415 mills, Baca has the second highest property tax rate in the state.

And Aspen, Telluride, and other affluent districts have some of the lowest property taxes in the state.  It's not fair, and it's not something anyone made a decision to do -- it's the result of a clash of state laws and amendments to the constitution.

"I definitely want to keep mill levies from going down any more," Pommer said, adding that he is considering freezing the rate even lower than what the governor proposed. "We really lost what started out as being a pretty equitable property tax. We have a fair number of districts that are under 20 mills, and some that are over 30 mills. That's really not fair, especially when you look at who the districts are."



Regardless of the property tax freeze, the school budget bill includes an 8 percent increase in K-12 education funding, or about $243.5 million more than is being spending this year on the state's 178 school districts.



For the 50 school districts in the 18-county Southern Colorado area, the budget measure includes about $312.5 million for the 2007-08 school year, a $15.1 million increase over this year.



Though the final per-pupil funding amount has not yet been determined, Pueblo City Schools are expected to get about $87.6 million next year, a $4.4 million increase, while Pueblo Rural Schools will see about $38.8 million, $3.1 million more than this year.



Pueblo rural schools are anticipating a 3 percent increase in student population next year, to 258 more students, while city schools are only expecting to enroll 32 more students in the fall.



While Pueblo schools are still seeing increases in student populations, others in the region aren't. School districts that are expecting marked decreases in student counts next fall include Canon City (86), Alamosa (54), Lamar (46), Florence (31) and Cotopaxi (13).

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