Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:01/29/2015
ATTENDANCE
Time:10:25 AM to 12:19 PM
Becker K.
X
Conti
X
Place:LSB A
Garnett
X
Kagan
X
This Meeting was called to order by
Landgraf
X
Representative Court
Pabon
*
Roupe
X
This Report was prepared by
Van Winkle
X
Katie Ruedebusch
Wilson
X
Foote
X
Court
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
HB15-1079
HB15-1104		Referred to Appropriations
Amended, Referred to Appropriations


10:26 AM -- HB15-1079

Representative Court, Chair, called the meeting to order.

Representative Coram and Representative Danielson, co-prime sponsors, introduced House Bill 15-1079. The Teen Pregnancy Prevention Program is a pilot project out of Mesa, Delta, and Montrose Counties. The program uses evidence-based counseling and education to help at-risk youth make healthy, responsible decisions to avoid unintended pregnancies and remain in school. The bill extends the program through 2020. Representative Coram spoke of his personal knowledge of the success of this program. He noted that nationally only 1.5 percent of teen mothers have gone to get their college degrees. He stated the program uses mostly federal dollars and does not reduce Colorado's General Fund. He said the project is successful and the bill expands the benefits of this program to the whole state. Representative Coram distributed letters of support to the committee (Attachments A, B, and C).

15HouseFin0129AttachA.pdf15HouseFin0129AttachA.pdf 15HouseFin0129AttachB.pdf15HouseFin0129AttachB.pdf

15HouseFin0129AttachC.pdf15HouseFin0129AttachC.pdf










10:32 AM

Representative Danielson to spoke to House Bill 15-1079. She added her support for the bill and noted the program's success. She said the program is a common sense and balanced approach to help young people that promotes educated and healthy behavior.


10:37 AM

The committee discussed the fiscal impact of the bill. The committee asked how the participants are entered into the program. Representative Coram stated participants are enrolled through the health department and public schools. He stated that no one is turned away and there is active participation with local schools. Also, Representative Coram stated that the program includes pregnant teens, teens who have given birth, and non-pregnant teens. He reiterated that the bill allows the program to be replicated statewide.

10:41 AM -- Ms. Kerry White, Legislative Council Staff, came to the table to discuss the bill's fiscal note. She noted that the fiscal note assumes the program will continue and expand statewide. She stated the $7,559 figure included in the note represents the entire cost of care given to a pregnant teen, the baby's birth, and the first two months of life. Ms. White answered questions regarding federal funds and reduction in those funds the coming years. She noted that federal funds are reduced in the fiscal note because more pregnancies are prevented and less federal funding is needed.

10:48 AM -- Ms. Laurel Karabatsos, Deputy Medicaid Director of the Colorado Department of Health Care Policy and Financing, testified in support of the bill. She clarified that the program targets both young women and men. She noted that the majority of the participants in the program are not pregnant and the intent of the program is to prevent unintended pregnancies.

10:50 AM -- Ms. Corrine Rivera-Fowler, Deputy Director of the Colorado Organization for Latina Opportunity and Reproductive Rights (COLOR), testified in support of the bill. She stated the program provides access to peer counseling and knowledge-based education. She noted that Latina teens have the highest teenage birth rates; three times higher than non-Latina teens and two times higher than African-American teens. She explained that COLOR supports programs that help teens make informed decisions and that this unique approach makes it such an important part of helping youth make healthy decisions. Ms. Rivera-Fowler discussed her personal experience with teen pregnancy.

Committee discussion ensued.


















BILL:HB15-1079
TIME: 10:51:34 AM
MOVED:Court
MOTION: Refer House Bill 15-1079 to the Committee on Appropriations. The motion passed on a vote of 10-1.
SECONDED:Landgraf
VOTE
Becker K.
Yes
Conti
Yes
Garnett
Yes
Kagan
Yes
Landgraf
Yes
Pabon
Yes
Roupe
Yes
Van Winkle
No
Wilson
Yes
Foote
Yes
Court
Yes
FINAL YES: 10 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS


11:04 AM -- HB15-1104

Representative Navarro introduced House Bill 15-1104. The bill creates a Colorado educator expense deduction, which would allow educators to deduct unreimbursed education expenses from Colorado income taxes beginning in tax year 2016. The committee discussed the TABOR impact of the bill along with how much the tax exemption benefits a specific teacher each year. Representative Navarro stated that even if the amount saved for each individual teacher is low, a reduction in the taxable income of teachers is helpful no matter the dollar amount. Representative Navarro clarified that the bill concerns a tax deduction, not a tax credit. The committee discussed the current status of the federal educator tax exemption.


11:12 AM -- Ms. Nicole Myers, Legislative Legal Services Attorney, clarified that the bill goes into effect only if the federal tax deduction ends.

Committee discussion on the benefits of the tax exemption to educators ensued.


11:17 AM

The committee discussed the tax deduction, its impact on the general fund, the bill's TABOR impact, and the negative factor. The negative factor reduces each school district's total program funding, and thus its per pupil funding, by a specified percentage determined by a targeted funding level.








11:22 AM -- Mr. Kevin Bronski, Senior Policy Analyst with the Colorado Department of Revenue, testified on the bill. Mr. Bronski addressed the breakdown of the FTE figure in the fiscal note. He stated that most of the associated FTE costs go toward related computer programming costs to add a new line item to the tax form. Responding to a question from the committee, Mr. Bronkski stated that availability of interest group help to taxpayers to help answer questions regarding the tax deduction was taken into account in determining the FTE figure. He noted that the deduction relatively simple.

11:32 AM -- Ms. Merry Martin, representing herself, testified in favor of the bill. She is an educator and principal. She noted that she spends much of her own money on instructional materials, especially art or science instructional supplies. As a principal, she noted all of her teachers spent money on their classrooms. She stated that approving this bill would send a statement that Colorado values its teachers. In response to the a question on whether teachers value the deduction, she noted that teachers understand the tax deduction and the message it sends about the value of their work. She responded to questions about teacher salaries.

11:41 AM -- Ms. Amie Baca-Oehlert, Vice President of the Colorado Education Association (CEA), testified in support of the bill. She noted that in the past CEA did not support bills that might take away from the goal of reducing the negative factor, but that in this instance, the CEA sees this bill as a modest supplemental approach that allows teachers to work hard for their students. She stated that teachers appreciate this small benefit. She noted that teachers understand that they are facing unfunded mandates and in response use their own financial resources for their classrooms. She recognizes that the bill is, at best, a patch, but that it shows that the General Assembly values and supports Colorado teachers.

11:46 AM -- Mr. Larson Silbaugh, Legislative Council Staff, came to the table to address committee questions regarding the federal business expense tax deduction. He noted the federal business expense deduction is only available for taxpayers who itemize, but itemization is not necessary for the federal educator expense deduction. Also, the requirements for what meets the Internal Revenue Service standards for a qualified business expense is much narrower than what is a qualified educator expense. Ms. Baca-Oehlert came back to the table to discuss itemized tax forms, teacher salaries, and whether a majority of teachers itemize on their taxes. Mr. Silbaugh noted that in tax year 2012, 62,000 Coloradoans claimed the federal educator expenses tax deduction.

Representative Garnett introduced amendment L.001 to the committee (Attachment D). The amendment limits the deduction to $250 per year.

15HouseFin0129AttachD.pdf15HouseFin0129AttachD.pdf

















BILL:HB15-1104
TIME: 11:57:07 AM
MOVED:Garnett
MOTION: Adopt amendment L.001 (Attachment D). The motion passed without objection.
SECONDED:Court
VOTE
Becker K.
Conti
Garnett
Kagan
Landgraf
Pabon
Roupe
Van Winkle
Wilson
Foote
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

Representative Garnett introduced amendment L.002 to the committee (Attachment E). The amendment shortens the length of the deduction's availability.

15HouseFin0129AttachE.pdf15HouseFin0129AttachE.pdf


























BILL:HB15-1104
TIME: 11:59:31 AM
MOVED:Garnett
MOTION:Adopt amendment L.002 (Attachment E). The motion passed without objection.
SECONDED:Court
VOTE
Becker K.
Conti
Garnett
Kagan
Landgraf
Pabon
Roupe
Van Winkle
Wilson
Foote
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

Committee discussion regarding the merits of the bill ensued.
BILL:HB15-1104
TIME: 12:02:05 PM
MOVED:Van Winkle
MOTION:Refer House Bill 15-1104, as amended, to the Committee on Appropriations. The motion passed on a vote of 9-2.
SECONDED:Pabon
VOTE
Becker K.
No
Conti
Yes
Garnett
Yes
Kagan
Yes
Landgraf
Yes
Pabon
Yes
Roupe
Yes
Van Winkle
Yes
Wilson
Yes
Foote
No
Court
Yes
FINAL YES: 9 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS


12:19 PM

The committee adjourned.