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2BE7A9E6A3350C8E87258424005C3635 Hearing Summary


Date Jun 25, 2019      
Location HCR 0112

Colorado's School Finance System: State and Local Shares - Committee Discussion Only

10:47:17 AM  

The committee came back to order.

10:47:52 AM  
Craig Harper, Joint Budget Committee Staff, introduced himself
to the committee and began his presentation regarding state and local shares
in the school finance system (Attachment B). Mr. Harper explained the total
sources of revenue, which includes school district property and specific
ownership tax, General Fund support, and other state money contributions.
The statutory formula produces a total program funding for each of Colorado's
178 districts. Statewide total program funding is the sum of those amounts.
The formula does not consider revenue sources. The local share, including
property taxes generated by each district's total program mill levy and
specific ownership taxes paid with vehicle registrations, provides the
foundation for total program funding. Property taxes provide about 93 percent
of the local share. The state share fills the gap between the local revenues
available for school finance and the total program amount for each district.
The budget stabilization factor represents the shortfall in available funding.
11:00:18 AM  

Mr. Harper discussed sources of state revenue for school finance. State funding for school finance comes from the General Fund, State Education Fund, and State Public School Fund. Mr. Harper discussed how the state share can fluctuate between districts, depending on the school district's property tax revenues. He also discussed the changes over time of state and local shares. Local shares have generally decreased over time, as the state share has increased in an attempt to offset those decreases. Three constitutional factors have driven this change -- the passage of the Gallagher Amendment in 1982; the passage of the Taxpayer Bill of Rights (TABOR) in 1992, and the passage of Amendment 23 in 2000. Both the Gallagher Amendment and TABOR have put downward pressure on local property tax revenue, and the passage of Amendment 23 has driven increases in total program funding based on inflation and enrollment growth.

11:16:05 AM  

Total program funding only includes the money distributed according to the formula and does not include other sources of funding.  Mr. Harper discussed these other revenues, including mill levy overrides, categorical funding, federal revenues, other local revenues, and other state funds.

11:24:54 AM  

Mr. Harper answered questions from the committee regarding any impacts of new legislation on oil and gas tax revenue, and mill levy overrides.  Mr. Harper discussed the history of mill levy revenue in the state and how certain constitutional provisions have impacted mill levy revenue in school districts.  He discussed how a uniform mill levy would impact the school finance system.

12:10:28 PM  

The committee recessed.