On Nov. 5, Colorado voters will have a chance to vote on Amendment 66, an estimated $950 million tax increase that would fund a wide variety of educational reforms, as well as change the way state dollars are allocated to school districts.
The amendment represents the largest single tax increase in state history.
Generally speaking, Democrats consider it a reworking of the antiquated Colorado K-12 finance system that adds new school funding to reduce class sizes, ensures all Colorado schools are well-funded and provides preschool and full-day kindergarten.
Republicans, for the most part, view it as overbearing tax increase that will weigh heavily on vulnerable citizens, with hard-earned dollars going to union-driven compensation packages and an education system that hasn’t proven itself through performance statistics.
Currently in Colorado, the statewide per-pupil funding is $6,652 and is projected to rise to $7,426 if the amendment passes.
Revenues will be collected through increased taxes on individuals and small businesses.
Colorado’s personal income tax rate is 4.63 percent. Amendment 66 would implement income tax increases of 5 percent for those with an income of up to $75,000 and 5.9 percent for any income greater than $75,000.
According to the Boulder Weekly, those grossing $50,000 yearly would pay $97 more per year; those at $100,000 would pay $243 more; the $150,000 level would be $721 more; and $200,000 would be $1,281.
“There’s probably never a good time for a large tax increase,” said Blanca O’Leary, chairwoman of the Pitkin County Democratic Party. “But I’m a mom, and I support it. Anything we can do to invest in our kids’ education is something I would support. I don’t think Amendment 66 is a cure-all, but it’s a major first step.
“If it passes, Colorado will stand out on the forefront of funding education.”
Frieda Wallison chairs the Pitkin County Republicans and thinks now is not the time to talk about raising income taxes.
“People are still hurting terribly,” Wallison said. “The economy is still quite fragile. People will have a hard time coming up with more tax money. Everyone agrees that educating our kids is important, but will this billion-dollar tax increase accomplish the goals they’re reaching for? I doubt it.”
So how will Amendment 66 affect the Aspen School District? According to the district’s chief financial officer, Kate Fuentes, the amendment brings no promises for more money in the long run.
“It’s very complicated,” Fuentes said. “We’ll initially see a small increase in funding if it passes. There’s no guarantee how the funding will grow over time. It looks like we’re going to have to find a long-term solution for funding for our schools, whether 66 passes or not. Aspen passed ballot Issue 2B last year, but the sales tax funding is only a four-year solution.”
The distribution formula will allow for additional funding based on district size and amount of at-risk students. With the cost-of-living factor being removed from the new formula, districts like Aspen will be at a disadvantage with additional funds going to urban school districts.
“That’s the way funding has happened historically in this state,” O’Leary said. “Resort communities often put more into the pie. We have people with higher incomes and end up helping other counties in need.”