Funding & Finance

A66 backers try to sort out reasons for big defeat

Voter aversion to tax increases and mistrust of government doomed Amendment 66, supporters of the proposed tax increase said Tuesday night after the ballot measure went down to resounding defeat.

Sen. Mike Johnston, D-Denver
Sen. Mike Johnston, D-Denver

But supporters, from Gov. John Hickenlooper on down, promised that they’ll continue to work to improve school funding – although few concrete ideas about how to do that were on display at a subdued Yes on 66 “party” at the Marriott City Center.

“The individual voters we thought we had said they weren’t sure they could trust government,” said Democratic Sen. Mike Johnston of Denver, a prime backer of A66. “We caught people at a bad moment,” explaining that he felt the recent federal government shutdown and the failings of the federal health insurance website soured voters on another big government program.

Andrew Freedman, Colorado Commits to Kids campaign manager, said internal polling in recent days showed that external events such as the federal shutdown had eroded earlier support for A66.

A key Johnston ally, Democratic Sen. Rollie Heath of Boulder, said the recent devastating flooding also distracted voters. “It made it hard for people to focus,” he said.

Johnston also said the election results raise the question, “Have Colorado voters decided they don’t want to change their tax burden?”

With more than a million votes counted late Tuesday night, A66’s yes vote was only 34 percent, compared to 66 percent voting no.

The amendment was defeated in nine of the state’s 11 most populous counties: Adams, Arapahoe, Douglas, El Paso, Jefferson, Larimer, Mesa, Pueblo and Weld.

Even in two reliably Democratic counties, Boulder and Denver, the “yes” votes were clinging to leads of about 1 percentage point in late returns.

The defeat came despite a professional, $10 million campaign in favor of the amendment. A loose coalition of opponents spent less than $1 million. And the margin of defeat was about the same as that for Proposition 103 in 2011. That initiative proposed a much smaller, temporary tax increase to fund K-12 and higher education, and that campaign raised well under $1 million.

A66 proposed a permanent, two-step increase in state income tax rates that was expected to raise $950 million in the first year. That money was needed to fund the reforms contained in Senate Bill 13-213, a law that now remains on the shelf with A66’s defeat.

Gov. John Hickenlooper
Gov. John Hickenlooper

The mood was already somber as amendment supporters gathered in the hotel’s ballroom Tuesday evening, with many people anticipating the defeat. Interestingly, there were no monitors in the room showing results or TV news bulletins.

About an hour after the polls closed, a parade of speakers came to podium to thank campaigners for their hard work and to promise continued work on improving funding for Colorado schools.

Johnston said, “Democracy is not always easy, but it is always right. … The supporters and opponents of this measure both want the same things … great education, a strong economy and a healthy state. What we disagreed about was how to pay for it, and that was the narrow questions that were decided tonight. … We need to restart this conversation as a state.”

Gov. John Hickenlooper said, “Every great social victory is based on a number of failures. There are always setbacks before we get to that ultimate success. … We’ll keep working on this.”

Lt. Gov. Joe Garcia had the same sentiments, saying, “We need to come back, we need to continue to fight for kids. … We know that kids can live up to our expectations. … Our kids have every right to have high expectations for all of us.”

Freedman said, “Please take tonight not to mourn but to celebrate what we’ve all been through.”

While promising to keep working for better school funding, advocates had no answers Tuesday night about what that effort might look like, saying time is needed to figure out exactly why voters didn’t like A66 and to plot a way forward.

Asked if he would try to advance pieces of the SB 13-213 package in the 2014 legislature, Johnston said, “I can’t answer that yet.”

Sen. Rollie Heath, D-Boulder
Sen. Rollie Heath, D-Boulder / File photo

Heath, asked about the 2014 session, said, “I don’t see a lot of very monumental things happening.” He said there needs to be a focus on implementing existing education reforms, such as educator evaluations and the early literacy program. “If we can get all of that right I would be very happy.”

Chris Watney, head of the Colorado Children’s Campaign, echoed that, saying, “We need to regroup and focus on the things that already are in law.” The campaign two years ago started the studies and discussion that helped lead to SB 13-213 and A66.

“I think tonight was a decision about taxes,” not education reform, Watney said.  That point was echoed by Tony Salazar, executive director of the Colorado Education Association, who said “the anti-government sentiment was strong.”

A66 would have provided significant funding for implementation of reforms such as new academic standards and teacher evaluation, and Salazar said the defeat puts successful implementation of those programs “at risk.” But he added that “it’s too early to say” if delays might be needed in some of those initiatives.

Bruce Caughey, executive director of the Colorado Association of School Executives, probably spoke for many in the room when he said, “It does feel like a body blow. … We need to take a little time and regroup.”

Other education tax proposals

Voters in several individual school districts also were stingy Tuesday.

According to information compiled by the Colorado School Finance Project, returns showed bond issues or tax overrides failing in Commerce City, Canon City, Elizabeth, Westminster, Bennett, Cheyenne County, Estes Park, Fremont Re-3, Estes Park, Lake County, Lewis-Palmer, Meeker, Walsh, Wiley and East Grand.

An $80 million bond issue passed in Littleton. It didn’t require new taxes but continues and existing one. A Fort Morgan bond also was successful. And six small districts – Creede, Haxtun, Kim, Limon, Moffat 2 and South Conejos – trying to raise local matches for state Building Excellent Schools Today grants apparently also were successful.

budget debate

Under the House budget plan, suburban districts would get more money while some urban districts would get less

PHOTO: Alan Petersime
Kindergarteners using the computer at IPS School 90.

Suburban schools, English-learners and virtual schools would fare well under the Indiana House’s 2017 budget plan, while Indianapolis Public Schools and other urban districts would see drops in state support.

In the Republican-crafted two-year budget draft, presented to the House Ways and Means Committee today, Indiana schools are projected to get an extra $273 million to support student learning, a 2.8 percent increase overall. Basic per-student funding that all districts get would also increase to $5,323 in 2019, up 4.6 percent from the $5,088 they received in 2017.

Much like in 2015, almost every district in Marion County would see a slight increase in state funding, with the largest bumps going to Beech Grove and Perry Townships. Each would get nearly 8 percent more in tuition support — the state’s contribution that funds each student’s education. Both districts’ boosts can be attributed in part to growing student populations.

Only one district in the county is expected to lose funding. IPS would see a big decline in state aid under the proposed budget, down by nearly 5 percent. That’s partially because enrollment is projected to decline over the next two years. But the largest drop would come from a reduction in the “complexity index” — extra dollars districts receive to educate poor students. That amount would fall by $9.4 million by 2019.

During her campaign, state Superintendent Jennifer McCormick called for adjustments to the complexity index, but House lawmakers kept the calculation as it was. It will continue to rely on how many families qualify for food stamps, foster care and welfare programs.

Although IPS and other urban districts — such as those in Gary, East Chicago and Hammond — lose either tuition support, per-student funding or both, many township and suburban districts saw increases.

In order to cover those increases in a year when state revenues are less than expected, Rep. Tim Brown, R-Crawfordsville, chairman of the budget-making House Ways and Means Committee, said the state did have to make cuts.

The House plan axes money for teacher performance bonuses. Last year, Indiana paid $40 million for the bonuses, which varied widely from district to district. High-performing teachers from wealthier districts got as much as a few thousand dollars, while those in poorer urban districts, such as Wayne Township, received less than $50.

Brown said the priority was finding a way to increase funding for all students.

“We made the decision, especially in this tight first year, to see what we could do to boost the foundation for every child in Indiana,” Brown said.

That move is likely to see pushback from the Senate. Sen. Luke Kenley, R-Noblesville, said he’d like to see the bonuses continue, albeit in a fairer way.

The House plan would also increase the budget for English-learners by 50 percent, going to $300 per student in 2018 and $350 per student in 2019, up from $200 per student in 2017.

Virtual charter schools, previously funded at just 90 percent of what other schools receive from the state, are bumped up to 100 percent under this plan. The proposal comes as Indiana’s online schools have struggled to find success — each one received an F from the state in 2016.

However, Brown argued they should be treated the same as other schools because “every child is equal.”

The overall $273 million boost to schools would also include an 11.3 percent increase in funding to Indiana’s taxpayer-funded voucher program, where families can use state dollars for private school tuition. Contributions are expected to move to $163 million in 2019, up from $146 million in 2017 due to higher anticipated participation.

The House plan sets aside less than what Gov. Eric Holcomb and McCormick have endorsed, but Brown said that the House’s plan — unlike Holcomb’s — is based on what was actually spent in 2017, not what lawmakers originally appropriated. State school districts enrolled fewer students than anticipated, so less money was spent.

The plan still has to pass out of Ways and Means before it heads to the full House, likely sometime next week.

The budget also includes:

  • $20 million per year for the state’s preschool program
  • $1.5 million per year for developing teacher “career pathways.”
  • $1 million per year to improve school internet access.
  • $2 million over two years for schools to use toward counseling and student support services, such as ones provided through groups like Communities In Schools.
  • $5 million over two years in incentive grants for schools and districts that consolidate services
  • $500,000 per year for dual language immersion programs
  • Kids with the most severe special needs would get a 4 percent increase in per-student funding over the next two years.
  • $12.5 million per year (up from $9.5 million) for the state’s Tax Credit Scholarship program
  • $12.5 million per year for the Charter and Innovation Network School Grant Program

Chalkbeat reporter Dylan Peers McCoy contributed to this story.

one hurdle down

Charter school funding bill clears Senate Education Committee

A student does classwork at James Irwin Charter Elementary School in Colorado Springs. (Denver Post file)

A bill that would require school districts to equally share money from local tax increases with charter schools cleared its first legislative hurdle Wednesday.

Senate Bill 61 advanced out of the Republican-controlled Senate Education Committee on a 4-3 party-line vote.

Supporters testified during a hearing last week that charter school students deserve equal access to taxes their parents pay each year.

Charter schools receive public money but operate independently, with greater autonomy over budgets, curriculum, and hiring and firing. Currently, it’s up to districts whether to share revenues from local tax increases with charter schools, and practices vary.

Opponents said the state would set a dangerous precedent, essentially breaking a compact between school boards and voters who approved tax increases known as mill levy overrides. Under the bill, charters would get a share from such tax measures approved by voters in the past and any that win approval in the future.

The bill was sponsored by state Sen. Owen Hill, a Colorado Springs Republican, and Sen. Angela Williams, a Denver Democrat. It is expected to win Senate approval but its future is cloudier in the Democratic-controlled House. Similar legislative efforts have failed in the past.

“What this bill is really about is the funding disparities that exist,” Williams told the Senate committee Wednesday. “Charters are public schools. They are schools that all our children attend … I don’t think any kid should be systematically underfunded because of the type of school they attend.”

Democrats on the education committee raised a number of concerns. Sen. Nancy Todd, an Aurora Democrat, said that while she fully supports school choice, the state has not been adequately funding the public school system.

“We are in a financial bind as a state,” Todd said. “I don’t believe that it is our role to step in and tell the local school districts what they have to do and how they are going to spend their money. Where does that stop?”

Democratic Sen. Rachel Zenzinger, who represents portions of Jefferson County, said she struggled with the bill. She too cited the financial pressures on districts, which continue to face shortfalls under Colorado’s complicated school funding system.

“I really feel at this time I can’t tie the hands of my local district people with another mandate from the state,” she said.

Sen. Tim Neville echoed other Republicans in saying he supports the bill to bring equality to school funding. He also pointed out that mill levy overrides approved by voters this fall included no language excluding charter schools.

The committee vote was 4-3, with Republicans Hill, Neville, Bob Gardner and Kevin Priola voting yes, and Democrats Todd, Zenzinger and Mike Merrifield voting no.