EDITORIAL
THE PUEBLO CHIEFTAIN
GOV. BILL RITTER deserves the Legislature’s support for his plan to bring some much-needed fairness and equity to the way Colorado finances its public schools.
The governor proposes to freeze school property tax levies at current rates in most districts, while actually reducing them in 33 districts, including Pueblo, that have been treated unfairly compared with rapidly growing areas of the state.
The net effect is expected to reduce Pueblo City Schools’ local tax share of school finance by $3 million - an amount that will shift to the state and at the same time reduce the tax residents of the City Schools district will have to pay. Thus, the district won’t lose any funding in the process.
A second part of Gov. Ritter’s plan would raise minimum per-pupil funding to help correct an inequity for districts such as Pueblo County District 70 and the Canon City schools that are at or near the bottom of the state funding formula.
This one step toward fairness is expected to increase Pueblo District 70 funding by $809,000 and Canon City by $551,000 in the next school year, based on a funding formula set by the Legislature.
Under current school finance law, Pueblo City Schools have a 30.4 operating mill levy - a $30.40 tax per $1,000 of the assessed property value (assessed value is a percentage and not the full market value). Pueblo County District 70’s 30.8 mill levy translates into a tax of $30.80 per $1,000 of assessed value.
Compare that to Aspen schools’ tax of only $4.80 (4.8 mills) per $1,000. The disparity is caused by the much higher property values in the wealthy ski resort.
As a result, Pueblo taxpayers carry a far heavier burden to support public education than their counterparts do in growing areas of the state where school taxes have gone down to as low as 5 mills in several districts and under 2 mills in one district.
Gov. Ritter proposes to cap school tax levies at 27 mills. That means 33 school districts would reduce mill levies to the new cap. They include Pueblo’s two districts and 10 others in the region - Fowler, Cheraw, Granada, Springfield, Vilas, Sargent, Center, Sanford, Moffat and Sierra Grande.
Meanwhile the state’s other 145 districts, already at or below 27 mills, will stay where they are.
The governor’s plan would reduce the annual school tax on an average home in Pueblo by $25, according to City Schools spokesman Greg Sinn. While only a modest savings, the plan shifts the tax burden to other areas of the state more able to afford it.
As county assessors reassess property to reflect increases in market value, school taxes will tend to rise throughout Colorado over time under the Ritter plan. But it at least gives Pueblo taxpayers some breathing room in the first few years.
Because of reassessments, the local property tax share of school funding is expected to rise by $55 million statewide the first year, even counting the tax break in 33 of the 178 districts.
Critics argue that the Ritter plan is a tax increase that should require voter approval under the Taxpayers Bill of Rights. Legislative lawyers counter that most - as many as 175 school districts - already have voted to exceed TABOR caps locally, so additional voting is not necessary.
Those conflicting views aside, we support what the governor’s plan proposes to accomplish - more equity in school finance.
While it’s only one step toward other needed school finance reforms, we urge legislators to approve the plan.
THE PUEBLO CHIEFTAIN
GOV. BILL RITTER deserves the Legislature’s support for his plan to bring some much-needed fairness and equity to the way Colorado finances its public schools.
The governor proposes to freeze school property tax levies at current rates in most districts, while actually reducing them in 33 districts, including Pueblo, that have been treated unfairly compared with rapidly growing areas of the state.
The net effect is expected to reduce Pueblo City Schools’ local tax share of school finance by $3 million - an amount that will shift to the state and at the same time reduce the tax residents of the City Schools district will have to pay. Thus, the district won’t lose any funding in the process.
A second part of Gov. Ritter’s plan would raise minimum per-pupil funding to help correct an inequity for districts such as Pueblo County District 70 and the Canon City schools that are at or near the bottom of the state funding formula.
This one step toward fairness is expected to increase Pueblo District 70 funding by $809,000 and Canon City by $551,000 in the next school year, based on a funding formula set by the Legislature.
Under current school finance law, Pueblo City Schools have a 30.4 operating mill levy - a $30.40 tax per $1,000 of the assessed property value (assessed value is a percentage and not the full market value). Pueblo County District 70’s 30.8 mill levy translates into a tax of $30.80 per $1,000 of assessed value.
Compare that to Aspen schools’ tax of only $4.80 (4.8 mills) per $1,000. The disparity is caused by the much higher property values in the wealthy ski resort.
As a result, Pueblo taxpayers carry a far heavier burden to support public education than their counterparts do in growing areas of the state where school taxes have gone down to as low as 5 mills in several districts and under 2 mills in one district.
Gov. Ritter proposes to cap school tax levies at 27 mills. That means 33 school districts would reduce mill levies to the new cap. They include Pueblo’s two districts and 10 others in the region - Fowler, Cheraw, Granada, Springfield, Vilas, Sargent, Center, Sanford, Moffat and Sierra Grande.
Meanwhile the state’s other 145 districts, already at or below 27 mills, will stay where they are.
The governor’s plan would reduce the annual school tax on an average home in Pueblo by $25, according to City Schools spokesman Greg Sinn. While only a modest savings, the plan shifts the tax burden to other areas of the state more able to afford it.
As county assessors reassess property to reflect increases in market value, school taxes will tend to rise throughout Colorado over time under the Ritter plan. But it at least gives Pueblo taxpayers some breathing room in the first few years.
Because of reassessments, the local property tax share of school funding is expected to rise by $55 million statewide the first year, even counting the tax break in 33 of the 178 districts.
Critics argue that the Ritter plan is a tax increase that should require voter approval under the Taxpayers Bill of Rights. Legislative lawyers counter that most - as many as 175 school districts - already have voted to exceed TABOR caps locally, so additional voting is not necessary.
Those conflicting views aside, we support what the governor’s plan proposes to accomplish - more equity in school finance.
While it’s only one step toward other needed school finance reforms, we urge legislators to approve the plan.
This editorial is dead on. It's a complicated issue, but editorial boards have really made an effort to understand it.
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