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Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0678.01 GWF SENATE BILL 98­140

STATE OF COLORADO

BY SENATOR Blickensderfer

FINANCE

A BILL FOR AN ACT

CONCERNING THE RETENTION OF STATE REVENUES IN EXCESS OF THE CONSTITUTIONAL LIMITATION ON STATE FISCAL YEAR SPENDING FOR THE PURPOSE OF REDUCING LOCAL SCHOOL DISTRICT PROPERTY TAX LEVIES.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.)

Defines "excess revenues" as the amount of state revenues that is in excess of the state fiscal year spending limitation for that fiscal year as prescribed by section 20 of article X of the state constitution.

Requires annual transfers from the general fund, commencing January 31, 1999, in an amount equal to the excess revenues for the preceding fiscal year or $280 million, whichever is less, to the school district mill levy reduction fund. Specifies that such transfers are not appropriations that are subject to state appropriation limits.

Creates the school district mill levy reduction fund consisting of the specified excess revenues. Provides that moneys in the fund shall be used to replace school district property tax revenues and reduce the mill levies of school districts. Requires the department of education to calculate the amount of any reduction and certify the amount of the reduction to school districts by a specified date. Requires the state treasurer to pay school districts an amount from the fund to offset the estimated loss in property tax revenues resulting from the reduced mill levy. Requires property tax reductions to be proportional for all school districts.

Specifies that moneys appropriated from the fund shall not be included in either state or school district constitutional spending limits.

Refers the act to voters for approval at the 1998 general election.

Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  Article 54 of title 22, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:

22­54­107.5.  Excess state revenues ­ reduction of district mill levies. (1)  FOR THE PURPOSES OF THIS SECTION, "FUND" MEANS THE SCHOOL DISTRICT MILL LEVY REDUCTION FUND CREATED IN PARAGRAPH (f) OF SUBSECTION (2) OF THIS SECTION.

(2) (a)  FOR PURPOSES OF THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES, "EXCESS REVENUES" MEANS THE AMOUNT OF STATE REVENUES FOR A PARTICULAR STATE FISCAL YEAR FROM SOURCES NOT EXCLUDED FROM STATE FISCAL YEAR SPENDING THAT IS IN EXCESS OF THE STATE FISCAL YEAR SPENDING LIMITATION PRESCRIBED BY SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION FOR THAT FISCAL YEAR.

(b)  THE STATE CONTROLLER AND STATE AUDITOR SHALL JOINTLY NOTIFY THE STATE TREASURER OF THE AMOUNT OF EXCESS REVENUES NO LATER THAN TEN DAYS PRIOR TO THE DATE OF ANY TRANSFER REQUIRED BY THIS SECTION.

(c)  NO TRANSFER SHALL BE REQUIRED UNDER THIS SECTION IF THERE ARE NO EXCESS REVENUES FOR THE FISCAL YEAR.

(d)  ON JANUARY 31, 1999, THE STATE TREASURER SHALL TRANSFER FROM THE GENERAL FUND TO THE FUND AN AMOUNT EQUAL TO THE EXCESS REVENUES FOR THE 1997­98 FISCAL YEAR OR TWO HUNDRED EIGHTY MILLION DOLLARS, WHICHEVER IS LESS.

(e)  ON NOVEMBER 1, 1999, AND ON NOVEMBER 1 OF EACH SUCCEEDING YEAR, THE STATE TREASURER SHALL TRANSFER FROM THE GENERAL FUND TO THE FUND AN AMOUNT EQUAL TO THE EXCESS REVENUES FOR THE PRECEDING FISCAL YEAR OR TWO HUNDRED EIGHTY MILLION DOLLARS, WHICHEVER IS LESS.

(f)  THE MONEYS TRANSFERRED FROM THE GENERAL FUND PURSUANT TO PARAGRAPHS (d) AND (e) OF THIS SUBSECTION (1) SHALL BE CREDITED TO THE SCHOOL DISTRICT MILL LEVY REDUCTION FUND, WHICH FUND IS HEREBY CREATED IN THE STATE TREASURY. ALL INTEREST DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEYS IN THE FUND SHALL BE CREDITED TO THE FUND. ALL MONEYS IN THE FUND SHALL BE SUBJECT TO APPROPRIATION BY THE GENERAL ASSEMBLY FOR THE PURPOSES SET FORTH IN THIS SECTION. ANY MONEYS NOT APPROPRIATED SHALL REMAIN IN THE FUND AND SHALL NOT BE TRANSFERRED OR REVERT TO THE GENERAL FUND OF THE STATE AT THE END OF ANY FISCAL YEAR.

(g)  ANY TRANSFER OF REVENUES FROM THE GENERAL FUND TO THE FUND MADE PURSUANT TO THIS SECTION SHALL NOT BE DEEMED TO BE AN APPROPRIATION SUBJECT TO THE LIMITATIONS OF SECTION 24­75­201.1, C.R.S.

(3) (a)  COMMENCING WITH THE 1999­2000 FISCAL YEAR, AND EACH FISCAL YEAR THEREAFTER IN WHICH THE FUND CONTAINS ANY MONEYS, THE GENERAL ASSEMBLY SHALL ANNUALLY APPROPRIATE ALL MONEYS IN THE FUND TRANSFERRED TO THE FUND FROM THE EXCESS REVENUES FROM THE FISCAL YEAR TWO YEARS PRIOR TO SUCH FISCAL YEAR TO THE DEPARTMENT OF EDUCATION FOR THE PURPOSE OF PROVIDING A REDUCTION IN THE NUMBER OF MILLS LEVIED BY A DISTRICT AS REQUIRED BY SECTIONS 22­54­106 (2) AND 22­54­107. FOR EACH SUCH YEAR, THE DEPARTMENT OF EDUCATION SHALL, ON OR BEFORE NOVEMBER 15:

(I)  CALCULATE THE AMOUNT BY WHICH THE MILL LEVY REQUIRED BY LAW PURSUANT TO SECTIONS 22­54­106 AND 22­54­107 FOR EACH DISTRICT SHALL BE REDUCED;

(II)  CERTIFY THE AMOUNT OF ANY SUCH MILL LEVY REDUCTION TO EACH DISTRICT; AND

(III)  CERTIFY TO THE STATE TREASURER THE AMOUNT PAYABLE TO EACH DISTRICT FROM THE FUND TO OFFSET THE LOSS, AS ESTIMATED BY THE DEPARTMENT OF EDUCATION, IN PROPERTY TAX REVENUE TO THE DISTRICT AS A RESULT OF THE REDUCED MILL LEVY.

(b)  EACH DISTRICT SHALL REDUCE THE LEVY CERTIFIED BY THE DISTRICT TO THE BOARD OF COUNTY COMMISSIONERS PURSUANT TO SECTION 22­40­102 AS SET FORTH IN THE CERTIFICATION PROVIDED TO THE DISTRICT BY THE DEPARTMENT OF EDUCATION PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH (a) THIS SUBSECTION (3).

(c)  NO LATER THAN TEN DAYS AFTER RECEIVING A CERTIFICATION PURSUANT TO SUBPARAGRAPH (III) OF PARAGRAPH (a) OF THIS SUBSECTION (3), THE STATE TREASURER SHALL PAY THE AMOUNT CERTIFIED DIRECTLY TO THE TREASURER OF EACH DISTRICT OR, IN ACCORDANCE WITH THE WRITTEN INSTRUCTIONS FROM THE DISTRICT, DIRECTLY TO AN ACCOUNT DESIGNATED BY THE DISTRICT THAT ALLOWS THE DISTRICT TO RETAIN TITLE TO THE MONEYS.

(d)   MILL LEVY REDUCTIONS SHALL BE CALCULATED BY THE DEPARTMENT OF EDUCATION IN A MANNER THAT CAUSES PROPERTY TAX REVENUES TO BE DECREASED PROPORTIONATELY FOR ALL DISTRICTS IN ANY GIVEN PROPERTY TAX YEAR.

(4)  MONEYS APPROPRIATED FROM THE FUND SHALL NOT BE INCLUDED IN EITHER STATE OR SCHOOL DISTRICT FISCAL YEAR SPENDING FOR PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION AND SECTION 24­77­102 (17), C.R.S., SINCE VOTER APPROVAL OF THIS SECTION PURSUANT TO SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION CONSTITUTES VOTER APPROVAL FOR BOTH THE STATE AND ALL SCHOOL DISTRICTS.

SECTION 2.  Refer to people under referendum.  This act shall be submitted to a vote of the registered electors of the state of Colorado at the next biennial regular general election, for their approval or rejection, under the provisions of the referendum as provided for in section 1 of article V of the state constitution, and in article 40 of title 1, Colorado Revised Statutes. Each elector voting at said election and desirous of voting for or against said act shall cast a vote as provided by law either "Yes" or "No" on the proposition: "FOR THE PURPOSE OF REDUCING SCHOOL DISTRICT PROPERTY TAXES THAT FUND THE OPERATION OF PUBLIC SCHOOLS, SHALL THE STATE OF COLORADO BE PERMITTED TO ANNUALLY RETAIN UP TO TWO HUNDRED EIGHTY MILLION DOLLARS OF THE REVENUES IN EXCESS OF THE CONSTITUTIONAL LIMITATION ON STATE FISCAL YEAR SPENDING, NOTWITHSTANDING ANY RESTRICTION ON FISCAL YEAR SPENDING, INCLUDING WITHOUT LIMITATION THE RESTRICTIONS OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION, AND, IN CONNECTION THEREWITH, TO SPECIFY THAT SUCH TRANSFERS ARE NOT SUBJECT TO ANY STATE CONSTITUTIONAL OR STATUTORY RESTRICTION OR LIMITATION ON FISCAL YEAR SPENDING OR APPROPRIATIONS?" The votes cast for the adoption or rejection of said act shall be canvassed and the result determined in the manner provided by law for the canvassing of votes for representatives in Congress.