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Financing crisis likely for schools
Senator predicts budget failure in 2010-11
Herald Denver Bureau
Republican senators once pointed to the School Finance Act as their proudest bipartisan achievement of the year. But that was before the House took $110 million out of the State Education Fund to avoid cuts to Colorado's school districts.
Despite the name, the State Education Fund actually protects the rest of the state budget from K-12 education. The fund serves as a pot of cash for the increases to schools that voters required in Amendment 23, but it's been a favorite source for both parties to pay for pet education projects.
Without the fund, legislators would still have to pay for the increases to K-12 schools by cutting other programs - most likely colleges.
"The State Education Fund has served as our bulletproof vest, if you will, and we have in past years peeled off layer after layer after layer," said Sen. Al White, R-Hayden.
Not all school funding is protected by Amendment 23, and this year the Legislature planned to make $150 million in cuts. But then the House took $110 million out of the State Education Fund to avoid most of those cuts.
Sen. Keith King warned that next year, lawmakers will have to put $300 million back into the fund to keep it solvent. Additionally, economists think the budget will dip another $200 million next year.
"It's a half a billion dollars that's going in the wrong direction," said King, R-Colorado Springs.
That would be a worse situation than even this year's cuts, White said.
"I am afraid, colleagues, that the 2010-11 year will see the unfolding of the ultimate tragedy, which will be the failure of our budget," White said.
Sen. Moe Keller, the Wheat Ridge Democrat who leads the Joint Budget Committee, agreed that Colorado won't be able to afford such a large infusion into the State Education Fund next year.
Not to worry, said Sen. Chris Romer, D-Denver, the sponsor of the School Finance Act. School districts can't touch the $110 million until Jan. 29, so if the economy hasn't improved by then, the Legislature can take the money back.
The Senate gave its final approval to the School Finance Act on a 21-14 vote that broke on party lines.
House members had similar concerns, but the bill passed that chamber on a 64-1 vote Tuesday.
Rep. Tom Massey, R-Poncha Springs, warned school districts that the Legislature might have to take back the money in January.
"They need to be very cautious. Hopefully, our economy will rebound to the point that a rescission of these funds won't be necessary," Massey said.
The Legislature adjourns for the year today.
jhanel@durangoherald.com
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