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60-61-101 Drains resources from K-12 schools and FROM Essential Colorado services and infrastructure. What Kind Of Colorado Do You Want?. In a nutshell. 3 Proposals on 2010 Ballot - PowerPoint PPT Presentation
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What Kind Of Colorado Do You Want?
3 Proposals on 2010 Ballot• Prop 101: Significantly reduces local and state support for public services, in particular transportation and K-12 education
• A60: Overturns prior local elections, cuts local support for schools, charges new taxes on many public services
• A61: Restricts common-sense investment in our infrastructure and ability to manage finances
• Sold as tax relief, but really these are job killing, recession extending and class-size expanding measures
• State will lose $2.1 billion annually AND will need to make up $1.6 billion in lost local revenue for K-12
• Local governments will lose $3.8 billion per year when the measures are fully in place
• Total fiscal impact on state and local governments would be $6.3 billion
• 70,000 direct job losses; 8,000 teacher job losses• Amendment 61 will lead to $2.06 billion in lost public financing at the state and local level
• And that’s just the beginning
Impact of the 3 Proposals on Schools
• Public K-12 schools will lose $1.6 billion in local funding as a result of slashed property taxes
• 8,000 teacher jobs cut = larger class sizes• All other essential state services will be cut by 99% if the state replaces lost local funds
• State officials have validated a district-by-district analysis of K-12 impacts across the state—we will see cuts of 37-62 percent from per pupil funding from local sources.
• More information at www.lookingforwardcolorado.com
If 60-61-101 pass…fiscal chaos• By law, K-12 should consume 99% of the state general fund—it would be “anarchy” according to Representative Carole Murray
FY 2009-10 General Fund AppropriationsTotal $7.4 Billion(Legislative Council)
Big 6
Education43%
Judicial5%
Higher Education9%
Human Services9%
Corrections9%
Health CarePolicy21%
Other4%
Colorado is already behind the average by $1,919 in the most recent study* (2010)
$1,919*2010 Education Week Quality Counts
• Includes several major changes in property-tax policy including:– Enacts a 50 percent reduction in school district mill levies with a required State backfill—an approximate $1.2 billion current-year equivalent
– Requires enterprises and authorities to pay property taxes
– Repeals local property tax “de-Brucings”—taking away local voter decisions about tax issues
– Limits future property tax increases to 10 years– Amends the Taxpayer Bill of Rights (TABOR) portion of the Colorado Constitution
• Prohibits all levels and divisions of government from bonding, lease-purchase, revenue anticipation, etc., even if they have the authority to do so now
• Exceptions limit local voter-approved borrowing to a maximum 10 years• State of Colorado borrowing is prohibited• Changes local borrowing limits to a fraction of the currently allowed maximums
• Additionally, requires a tax cut equivalent to the average annual repayment of any loan that is paid off
• Will have a serious fiscal impact on the State of Colorado and many local agencies
• For example, when TRANS bonds are paid off, CDOT will then lose $168 million of gas tax revenue used to repay those bonds
• Amends the Taxpayer Bill of Rights (TABOR) portion of the Colorado Constitution
• Reduces several revenue streams including:– Eventual reductions in the Colorado state income tax rate to 3.5 percent from the current 4.63 percent—
– approximate $1.2 billion current-year equivalent– Elimination of the specific ownership tax on vehicles—approximate $500 million cut to local schools
– and other local revenue– Reduction of vehicle registration fees to $10—about a $375 million cut to state and local road and
– bridge funds– Additionally, 101 may trigger a loss of about $535 million in Federal Medicaid payments to Colorado
– Amends the Colorado Revised Statutes—not the Colorado Constitution
What can you do?
• Get informed about the issues– www.donthurtcolorado.org– www.lookingforwardcolorado.com
• Work on your own personal time to share your perspectives with friends, neighbors, community groups and others
• Activate your social networks• Make a contribution
Questions?