With the proposed change to Gallagher, does our school district receive less money?
The Fiscal Impact Statement prepared by the Colorado Legislative Council Staff provides a detailed explanation of the change that would occur in this initiative. A couple of important points include:
- The measure only applies to property taxes levied by school districts. Property taxes levied by other local governments are unaffected by the measure. The calculation for the target percentage and the residential assessment rate will be determined by the assessed values used for all other local governments and is unaffected by the measure.
- Setting the residential assessment rate at 7.0% (reduced from 7.2%) and the nonresidential assessment rate at 24% (reduced from 29%) for mills levied by school districts, the measure decreases local property tax revenue to fund P-12 public schools in FY2019-2020. However, under the School Finance Act, each district's local share is calculated first, and state aid makes up the difference between the local portion and the total funding need identified through the formula.
Resource documents for additional information:
- Fiscal Impact Statement for Initiative #93 (Colorado Legislative Council Staff)
- School Finance in Colorado (Colorado Legislative Council Staff)