Rocky inaccurately reported school finance mechanism in citing GOP opposition

Summary: Reporting on Gov. Bill Ritter's (D) State of the State address, the Rocky Mountain News on January 11 inaccurately described the Colorado mill levy freeze enacted in May 2007. The article reported that the measure "will allow the state to keep an estimated $3.8 billion over the next 10 years that it otherwise would have had to return to taxpayers under a 1994 school finance law." In fact, the $3.8 billion is the amount that the state would have had to pay to support local school districts, but which under the mill levy freeze local school districts will collect and spend instead.

In a January 11 article about Gov. Bill Ritter's (D) January 10 State of the State address, the Rocky Mountain News reported that a mill levy freeze Ritter enacted on May 9, 2007, "will allow the state to keep an estimated $3.8 billion over the next 10 years that it otherwise would have had to return to taxpayers under a 1994 school finance law." In fact, while the mill levy freeze amends the Public School Finance Act of 1994 so that beginning in 2008 many local communities will pay a greater share of public education financing, it does not impact state tax collections or refunds.

The article, by reporter Chris Barge, inaccurately described Senate Bill 199 -- also known as the Colorado Children's Amendment -- in the context of describing the negative Republican response to Ritter's address in which he spoke of public education programs that will be implemented through S.B. 199.

From the article "Ritter's big ideas lauded, but GOP asks about funding," published January 11 in the Rocky Mountain News:

[Ritter] also reiterated his plans, announced this fall, to implement some of the recommendations from his P-20 Council. The suggestions include expanding full-day kindergarten, eliminating the 3,000-child waiting list for the Colorado Pre-School Program and creating a Colorado Counselor Corps to deploy 70 guidance counselors into targeted middle and high schools.

Issue of freeze ongoing

Republicans mostly held their applause there, showing their opposition to Ritter's plan to fund those programs with the property tax freeze the governor pushed through the legislature last year.

Republicans have sued, calling it a tax hike without the public vote required by the Taxpayer's Bill of Rights. The latest figures show the freeze will allow the state to keep an estimated $3.8 billion over the next 10 years that it otherwise would have had to return to taxpayers under a 1994 school finance law. [emphasis added]

In fact, the $3.8 billion the News referred to is not money that the state "otherwise would have had to return to taxpayers." Rather, it is the amount that the state would have had to pay to support local school districts, but which under the mill levy freeze local school districts will collect and spend instead. According to S.B. 199's fiscal note, prepared by the nonpartisan Colorado Legislative Council Staff, "As amended, the bill freezes school finance mill levies, allowing a greater portion of school finance act funding to be paid from local property taxes in districts where voters have approved a ballot question allowing the district to retain revenue in excess of its constitutional limit." The fiscal note further states:

Summary of Legislation

As amended, the bill modifies several laws affecting public schools, including the Public School Finance Act of 1994. Specifically, the bill makes the following changes, which are described in greater detail in the State Expenditures section:

• increases the statewide "base" per pupil amount by 4.6 percent to match inflation plus 1 percent, as required by the state constitution;
• freezes the school finance mill levy for many school districts and caps the levy for other districts at 27 mills;
• adds 2,000 preschool slots in FY 2007-08 and another 3,500 slots in FY 2008-09, bringing the total to 19,860;
• increases the minimum per pupil funding amount over 2 years to 95 percent of statewide average per pupil funding; and
• increases funding for the national credential fee assistance by $25,000.

[...]

Freezing mill levies and setting a cap on levies at 27 mills will reduce the need for state expenditures for school finance by $47.4 million in FY 2007-08 and $47.8 million in FY 2008-09. Under current law, a school district's mill levy under the school finance act is based on the levy imposed in the prior year, unless that levy would generate more property tax revenue than allowed under the act, in which case the district's levy is reduced. As amended, the bill freezes school finance mill levies, allowing a greater portion of school finance act funding to be paid from local property taxes in districts where voters have approved a ballot question allowing the district to retain revenue in excess of its constitutional limit. For districts with school finance levies greater than 27 mills, the bill sets a cap on the school finance act mill levy at 27 mills. [emphases added]

—E.B.