Amendment 66 proposes a two-tier, personal income tax with new revenue (~$950 million in the first fiscal year) deposited in a separate fund for preschool through grade 12 (P-12) public education. The current, flat income tax rate is 4.63% on federal taxable income. Starting in tax year 2014, the rate would return to the 1990s level of 5% for federal taxable income of $75,000 or less and rise to 5.9% on amounts over $75,000. The $75,000 amount may be adjusted annually to reflect inflation.
This amendment also repeals Amendment 23, placed on the ballot by petition and approved by voters in 2000 to guarantee public education funding increases at 1% above inflation for 10 years and thereafter to keep pace with inflation. Rather, Amendment 66 also requires that at least 43% of state income, sales and excise tax revenue, collected at existing tax rates, be allocated to public education. In the last 13 budget years, the average share spent on P-12 education has been 46%.
Senate Bill 13-213, passed by the General Assembly, proposes a new formula for state and local education funding contingent on voter approval of Amendment 66.
Recommendation: yes
A criticism of Prop 103 in 2011 was that it didn’t go far enough. Amendment 66 is much more ambitious creating a permanent change to income tax rates.
Amendment 23, an initiative to increase public education, has had its text reinterpreted in recent years, resulting in less money going to education than supporters expected. Some people are understandably suspicious that Amendment 66 could also be subject to a future reinterpretation of funding formulas. Another argument stated against Amendment 66, particularly for Boulder, is that Boulder taxpayers will pay more money out than their (relatively wealthy) school district will receive. Finally, some education supporters oppose this measure because they don’t like the 2010 Senate Bill 191 education reforms on testing and teacher accountability that will get funded.
Meanwhile, in May the Colorado Supreme Court ruled 4-2 in Lobato vs State of Colorado that the state’s education funding system is “thorough and uniform” and that the state is not required to spend more on K-12 public education.
As one who doesn't like dedicated taxes, I can tolerate this one because public education is a major expense for state government. By considering the 43% as a minimum for education funding, having a strict limit seems more tolerable. There is always the risk that money may be spent unwisely, SB13-213 has some recordkeeping requirements to improve transparency.
Website for the Yes side (Colorado Commits to Kids)
http://coloradocommits.com/
Website for the No side (Coloradans for Real Education Reform)
http://www.coforrealedreform.com/
Amendment 66 (CONSTITUTIONAL) (Approved Ballot Language)
SHALL STATE TAXES BE INCREASED BY $950,100,000 ANNUALLY IN THE FIRST FULL FISCAL YEAR AND BY SUCH AMOUNTS AS ARE RAISED THEREAFTER BY AMENDMENTS TO THE COLORADO CONSTITUTION AND THE COLORADO REVISED STATUTES CONCERNING FUNDING FOR PRESCHOOL THROUGH TWELFTH-GRADE PUBLIC EDUCATION, AND, IN CONNECTION THEREWITH, INCREASING THE CURRENT STATE INCOME TAX RATE ON INDIVIDUALS, ESTATES, AND TRUSTS AND IMPOSING AN ADDITIONAL RATE SO HIGHER AMOUNTS OF INCOME ARE TAXED AT HIGHER RATES; REQUIRING THE RESULTING INCREASES IN TAX REVENUES BE SPENT ONLY FOR IMPROVEMENTS TO PRESCHOOL THROUGH TWELFTH-GRADE PUBLIC EDUCATION; ALLOWING ALL TAX REVENUES ATTRIBUTABLE TO THIS MEASURE TO BE COLLECTED AND SPENT WITHOUT FUTURE VOTER APPROVAL; REQUIRING AT LEAST 43% OF STATE SALES, EXCISE, AND INCOME TAX REVENUES BE DEPOSITED IN THE STATE EDUCATION FUND; AND REPEALING CERTAIN EXISTING PUBLIC EDUCATION FUNDING REQUIREMENTS?
- YES/FOR
- NO/AGAINST
This amendment also repeals Amendment 23, placed on the ballot by petition and approved by voters in 2000 to guarantee public education funding increases at 1% above inflation for 10 years and thereafter to keep pace with inflation. Rather, Amendment 66 also requires that at least 43% of state income, sales and excise tax revenue, collected at existing tax rates, be allocated to public education. In the last 13 budget years, the average share spent on P-12 education has been 46%.
Senate Bill 13-213, passed by the General Assembly, proposes a new formula for state and local education funding contingent on voter approval of Amendment 66.
Recommendation: yes
A criticism of Prop 103 in 2011 was that it didn’t go far enough. Amendment 66 is much more ambitious creating a permanent change to income tax rates.
Amendment 23, an initiative to increase public education, has had its text reinterpreted in recent years, resulting in less money going to education than supporters expected. Some people are understandably suspicious that Amendment 66 could also be subject to a future reinterpretation of funding formulas. Another argument stated against Amendment 66, particularly for Boulder, is that Boulder taxpayers will pay more money out than their (relatively wealthy) school district will receive. Finally, some education supporters oppose this measure because they don’t like the 2010 Senate Bill 191 education reforms on testing and teacher accountability that will get funded.
Meanwhile, in May the Colorado Supreme Court ruled 4-2 in Lobato vs State of Colorado that the state’s education funding system is “thorough and uniform” and that the state is not required to spend more on K-12 public education.
As one who doesn't like dedicated taxes, I can tolerate this one because public education is a major expense for state government. By considering the 43% as a minimum for education funding, having a strict limit seems more tolerable. There is always the risk that money may be spent unwisely, SB13-213 has some recordkeeping requirements to improve transparency.
Website for the Yes side (Colorado Commits to Kids)
http://coloradocommits.com/
Website for the No side (Coloradans for Real Education Reform)
http://www.coforrealedreform.com/
Amendment 66 (CONSTITUTIONAL) (Approved Ballot Language)
SHALL STATE TAXES BE INCREASED BY $950,100,000 ANNUALLY IN THE FIRST FULL FISCAL YEAR AND BY SUCH AMOUNTS AS ARE RAISED THEREAFTER BY AMENDMENTS TO THE COLORADO CONSTITUTION AND THE COLORADO REVISED STATUTES CONCERNING FUNDING FOR PRESCHOOL THROUGH TWELFTH-GRADE PUBLIC EDUCATION, AND, IN CONNECTION THEREWITH, INCREASING THE CURRENT STATE INCOME TAX RATE ON INDIVIDUALS, ESTATES, AND TRUSTS AND IMPOSING AN ADDITIONAL RATE SO HIGHER AMOUNTS OF INCOME ARE TAXED AT HIGHER RATES; REQUIRING THE RESULTING INCREASES IN TAX REVENUES BE SPENT ONLY FOR IMPROVEMENTS TO PRESCHOOL THROUGH TWELFTH-GRADE PUBLIC EDUCATION; ALLOWING ALL TAX REVENUES ATTRIBUTABLE TO THIS MEASURE TO BE COLLECTED AND SPENT WITHOUT FUTURE VOTER APPROVAL; REQUIRING AT LEAST 43% OF STATE SALES, EXCISE, AND INCOME TAX REVENUES BE DEPOSITED IN THE STATE EDUCATION FUND; AND REPEALING CERTAIN EXISTING PUBLIC EDUCATION FUNDING REQUIREMENTS?
- YES/FOR
- NO/AGAINST
I've written an evenhanded discussion of Amendment 66 at my website Colorado Amendments
ReplyDeletethanks - dave