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Explore alternatives to ‘negative factor’

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Thursday, March 16, 2017 9:22 PM

The Colorado Legislature again will be struggling to balance the budget and it looks like they will do it again on the back of K-12 education by decreasing the constitutionally-mandated spending requirement through the loophole of the “negative factor.”

The “negative factor” is a way for the legislature to get around Amendment 23, which requires a K-12 spending increase to match the inflation rate annually. The governor and legislature have shorted schools since 2009 by approximately $875 million, and the proposal is to increase the “negative factor” by an additional $145 million this year.

To make up for this shortfall, many school districts have gone to an increased tax on property owners. However, not all districts can pass a property tax increase, and is it fair to increase property taxes to do what the state should be doing?

I believe the legislature has some other options rather than take money from K-12:

They must role back the eligibility for Medicaid. Today, 25 percent of Coloradoans are eligible for Medicaid. We all want to help folks, but Medicaid spending in Colorado today is not sustainable. There are, and have been in the past, pet projects of legislators that should not necessarily be a priority over K-12 funding. Every spending item should be looked at and appropriate cuts be made.There are numerous costly and useless state and federal mandates on schools that must be repealed.The Hospital Provider Fee should be made an “enterprise.” The fee is a federal subsidy that backfills a hospital’s requirement to provide Medicaid services for 42 cents of every $1 of cost, and for the cost of providing services for every person that comes in an emergency room door. Today the revenue for this fee is counted in the General Fund budget and triggers a taxpayer refund. This further restricts money that could go to K-12. It makes no sense to use a federal subsidy for a tax refund.We should not need to increase taxes for K-12 funding.I understand that the Legislature has to make some tough decisions. I wish them well.

J. Paul Brown

Ignacio

Editor’s note: J. Paul Brown is a former Colorado state representative from House District 59.

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