First Regular Session
Sixty-second General Assembly
LLS NO. 99-0193.01 Dan Cartin SENATE BILL 99-008
STATE OF COLORADO
BY SENATOR Teck
FINANCE
APPROPRIATIONS
A BILL FOR AN ACT
101 CONCERNING THE REFUND OF STATE REVENUES IN EXCESS OF THE
102 CONSTITUTIONAL LIMITATION ON STATE FISCAL YEAR SPENDING FOR
103 FOUR CONSECUTIVE FISCAL YEARS, BEGINNING WITH FISCAL YEAR
104 1998-99, THROUGH THE TEMPORARY REDUCTION OF SCHOOL
105 DISTRICTS' PROPERTY TAX RATE LEVIED FOR THE OPERATION OF
106 PUBLIC SCHOOLS.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
For any fiscal year commencing on or after July 1, 1998, but prior
to July 1, 2002, in which the state controller certifies that state revenues
exceed the limitation on state fiscal year spending imposed by section 20
(7) (a) of article X of the state constitution, allows school districts to
temporarily reduce their mill levies for the operation of public schools by
the number of mills that would generate the amount of the school
district's share of state excess revenues.
Instructs the property tax administrator to calculate each school
district's share of the state excess revenues by dividing the total amount
of state excess revenues required to be refunded by the total district share
of total program statewide and then multiplying that percentage by the
individual district's share of its total program.
Requires the general assembly to appropriate the entire amount of
state excess revenues required to be refunded to fund the "Public School
Finance Act of 1994". Specifies that said appropriation is in addition to
the amount of general funds that would otherwise be appropriated to fund
the act. States that general fund appropriations to effectuate the refund
[ ] denotes HOUSE amendment. { } denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate material to be deleted from existing statute.
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of state excess revenues are not subject to the statutory 6% limitation on
general fund appropriations. Specifies that these provisions for refunding
state excess revenues shall not apply in any year in which the voters
statewide vote to allow the state to retain and expend the entire amount
of state excess revenues.
Directs the state controller to certify the amount of state excess
revenues on or before September 1 of any given year. Requires the state
auditor to complete an audit of the certified amount of excess state
revenues by September 15 of that year.
1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. Article 54 of title 22, Colorado Revised Statutes,
3 is amended BY THE ADDITION OF A NEW SECTION to read:
4 22-54-106.5. State share of district total program - use of state
5 excess revenues. (1) THE GENERAL ASSEMBLY HEREBY FINDS THAT:
6 (a) SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION, WHICH
7 WAS APPROVED BY THE REGISTERED ELECTORS OF THIS STATE IN 1992,
8 LIMITS THE ANNUAL GROWTH OF STATE FISCAL YEAR SPENDING;
9 (b) IT IS ESTIMATED THAT, FOR FISCAL YEARS 1998-99 THROUGH
10 2001-02, STATE REVENUES FROM SOURCES NOT EXCLUDED FROM STATE
11 FISCAL YEAR SPENDING WILL EXCEED THE LIMITATION ON STATE FISCAL
12 YEAR SPENDING;
13 (c) WHEN REVENUES NOT EXCLUDED FROM STATE FISCAL YEAR
14 SPENDING EXCEED THE STATE FISCAL YEAR SPENDING LIMITATION FOR ANY
15 GIVEN FISCAL YEAR, SECTION 20 (7) (d) OF ARTICLE X OF THE STATE
16 CONSTITUTION REQUIRES THAT THE EXCESS REVENUES BE REFUNDED IN
17 THE NEXT FISCAL YEAR UNLESS VOTERS APPROVE A REVENUE CHANGE
18 ALLOWING THE STATE TO KEEP THE REVENUES;
19 (d) IN ADDITION, SECTION 20 (1) OF ARTICLE X OF THE STATE
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1 CONSTITUTION STATES THAT REFUNDS NEED NOT BE PROPORTIONAL WHEN
2 PRIOR PAYMENTS ARE IMPRACTICAL TO IDENTIFY OR RETURN AND
3 AUTHORIZES THE USE OF ANY REASONABLE METHOD FOR REFUNDING
4 EXCESS REVENUES;
5 (e) IF VOTERS STATEWIDE EITHER DO NOT AUTHORIZE THE STATE
6 TO RETAIN AND SPEND ALL OF THE EXCESS REVENUES FOR THAT FISCAL
7 YEAR OR AUTHORIZE THE STATE TO RETAIN AND SPEND ONLY A PORTION OF
8 THE EXCESS REVENUES FOR THAT FISCAL YEAR, THE STATE IS REQUIRED TO
9 REFUND THE REVENUES IN EXCESS OF THE STATE FISCAL YEAR SPENDING
10 LIMITATION FOR THAT FISCAL YEAR THAT VOTERS HAVE NOT AUTHORIZED
11 THE STATE TO RETAIN AND SPEND;
12 (f) IT IS WITHIN THE LEGISLATIVE PREROGATIVE OF THE GENERAL
13 ASSEMBLY TO ENACT LEGISLATION TO IMPLEMENT A MECHANISM TO
14 REFUND STATE EXCESS REVENUES FOR FISCAL YEARS 1998-99 THROUGH
15 2001-02 IN COMPLIANCE WITH SECTION 20 OF ARTICLE X OF THE STATE
16 CONSTITUTION;
17 (g) IT IS A REASONABLE AND NECESSARY EXERCISE OF THE
18 LEGISLATIVE PREROGATIVE TO DETERMINE THAT, DUE TO THE
19 IMPOSSIBILITY OF IDENTIFYING OR RETURNING PRIOR PAYMENTS, IT IS NOT
20 FEASIBLE TO MAKE PROPORTIONAL REFUNDS OF STATE EXCESS REVENUES;
21 (h) IT IS ALSO A REASONABLE AND NECESSARY EXERCISE OF THE
22 LEGISLATIVE PREROGATIVE TO DETERMINE WHAT CONSTITUTES A
23 REASONABLE METHOD OF REFUNDING STATE EXCESS REVENUES AFTER
24 CONSIDERATION OF THE BEST INFORMATION AVAILABLE AT THE TIME
25 REGARDING: THE AMOUNT AND SOURCE OF EXCESS REVENUES TO BE
26 REFUNDED; THE QUALIFICATIONS FOR AND NUMBER OF ELIGIBLE
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1 RECIPIENTS; AND THE RELATED ADMINISTRATIVE EXPENSES;
2 (i) REDUCING SCHOOL DISTRICTS' PROPERTY TAX RATES BY
3 ALLOWING SCHOOL DISTRICTS TO TEMPORARILY REDUCE THEIR MILL
4 LEVIES AND APPROPRIATING THE AMOUNT OF THE STATE EXCESS REVENUES
5 TO INCREASE THE STATE'S SHARE OF DISTRICT TOTAL PROGRAM FUNDING
6 TO MAKE UP FOR THE DECREASE IN SCHOOL DISTRICTS' PROPERTY TAX
7 REVENUES IS A REASONABLE METHOD OF REFUNDING THE STATE EXCESS
8 REVENUES.
9 (2) FOR ANY EXCESS REVENUE BUDGET YEAR, EACH DISTRICT
10 SHALL REDUCE THE NUMBER OF MILLS IT WOULD OTHERWISE LEVY
11 PURSUANT TO SECTION 22-54-106 (2) BY THE NUMBER OF MILLS
12 NECESSARY TO GENERATE AN AMOUNT EQUAL TO THE DISTRICT'S SHARE OF
13 THE EXCESS REVENUE, AS REPORTED BY THE PROPERTY TAX
14 ADMINISTRATOR PURSUANT TO SUBSECTION (3) OF THIS SECTION. ANY
15 MILL LEVY REDUCTION CALCULATED PURSUANT TO THIS SECTION SHALL
16 CONSTITUTE A TEMPORARY REDUCTION FOR THE PURPOSE OF REFUNDING
17 SAID EXCESS REVENUES, SHALL BE EFFECTIVE ONLY FOR THE EXCESS
18 REVENUE BUDGET YEAR IN WHICH IT IS CALCULATED, AND SHALL NOT
19 REQUIRE VOTER APPROVAL TO LEVY THE NUMBER OF MILLS IN
20 ACCORDANCE WITH SECTION 22-54-106 (2) FOR THE BUDGET YEAR
21 SUBSEQUENT TO AN EXCESS REVENUE BUDGET YEAR.
22 (3) (a) (I) EXCEPT AS OTHERWISE PROVIDED IN SUBPARAGRAPH (II)
23 OF THIS PARAGRAPH (a) ON OR BEFORE DECEMBER 15 OF ANY EXCESS
24 REVENUE BUDGET YEAR, THE PROPERTY TAX ADMINISTRATOR SHALL
25 NOTIFY EACH DISTRICT OF THE AMOUNT OF THE DISTRICT'S SHARE OF STATE
26 EXCESS REVENUES, CALCULATED PURSUANT TO SUBPARAGRAPH (I) OF
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1 PARAGRAPH (b) OF THIS SUBSECTION (3).
2 (II) IF ONE OR MORE BALLOT QUESTIONS ARE SUBMITTED TO THE
3 VOTERS AT A STATEWIDE ELECTION TO BE HELD IN NOVEMBER OF ANY
4 EXCESS REVENUE BUDGET YEAR THAT SEEK AUTHORIZATION FOR THE
5 STATE TO RETAIN AND SPEND ALL OR ANY PORTION OF THE AMOUNT OF
6 EXCESS STATE REVENUES FOR THE STATE FISCAL YEAR ENDING
7 IMMEDIATELY PRIOR TO THAT EXCESS REVENUE BUDGET YEAR, ON OR
8 BEFORE DECEMBER 15 OF THAT EXCESS REVENUE BUDGET YEAR, THE
9 PROPERTY TAX ADMINISTRATOR SHALL NOTIFY EACH DISTRICT OF THE
10 AMOUNT OF THE DISTRICT'S SHARE OF STATE EXCESS REVENUES,
11 CALCULATED PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH (b) OF
12 THIS SUBSECTION (3).
13 (b) (I) THE PROPERTY TAX ADMINISTRATOR, UTILIZING
14 INFORMATION PROVIDED PURSUANT TO SUBSECTION (4) OF THIS SECTION,
15 SHALL CALCULATE EACH INDIVIDUAL DISTRICT'S SHARE OF STATE EXCESS
16 REVENUES BY DIVIDING THE AMOUNT OF THE STATE EXCESS REVENUES, AS
17 CERTIFIED BY THE CONTROLLER, BY THE TOTAL DISTRICT SHARE OF TOTAL
18 PROGRAM STATEWIDE AND MULTIPLYING SAID PERCENTAGE BY THE
19 INDIVIDUAL DISTRICT'S SHARE OF ITS TOTAL PROGRAM.
20 (II) THE PROPERTY TAX ADMINISTRATOR SHALL CALCULATE EACH
21 INDIVIDUAL DISTRICT'S SHARE OF STATE EXCESS REVENUES BY DIVIDING
22 THE AMOUNT OF THE STATE EXCESS REVENUES, AS CERTIFIED BY THE
23 CONTROLLER AND AS ADJUSTED TO REFLECT THE IMPACT, IF ANY, OF THE
24 RESULTS OF THE STATEWIDE ELECTION HELD IN NOVEMBER OF THAT
25 EXCESS REVENUE BUDGET YEAR AT WHICH ONE OR MORE BALLOT
26 QUESTIONS THAT SEEK AUTHORIZATION FOR THE STATE TO RETAIN AND
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1 SPEND ALL OR ANY PORTION OF THE AMOUNT OF STATE EXCESS REVENUES
2 FOR THE STATE FISCAL YEAR ENDING IMMEDIATELY PRIOR TO THAT EXCESS
3 REVENUE BUDGET YEAR BY THE TOTAL DISTRICT SHARE OF TOTAL
4 PROGRAM STATEWIDE AND MULTIPLYING SAID PERCENTAGE BY THE
5 INDIVIDUAL DISTRICT'S SHARE OF ITS TOTAL PROGRAM.
6 (III) FOR PURPOSES OF THIS PARAGRAPH (b):
7 (A) "INDIVIDUAL DISTRICT'S SHARE OF ITS TOTAL PROGRAM"
8 MEANS THE AMOUNT OF PROPERTY TAX REVENUE THAT THE DISTRICT IS
9 ENTITLED TO RECEIVE FROM ITS PROPERTY TAX LEVY MADE PURSUANT TO
10 SECTION 22-54-106, ASSUMING ONE HUNDRED PERCENT COLLECTION, BUT
11 EXCLUDING THE AMOUNT OF SPECIFIC OWNERSHIP TAX REVENUE PAID TO
12 THE DISTRICT, AS DEFINED IN SECTION 22-54-103 (11).
13 (B) "TOTAL DISTRICT SHARE OF TOTAL PROGRAM STATEWIDE"
14 MEANS THE AMOUNT OF PROPERTY TAX REVENUE THAT ALL DISTRICTS ARE
15 ENTITLED TO RECEIVE FROM THEIR PROPERTY TAX LEVIES MADE PURSUANT
16 TO SECTION 22-54-106, ASSUMING ONE HUNDRED PERCENT COLLECTION,
17 BUT EXCLUDING THE AMOUNT OF SPECIFIC OWNERSHIP TAX REVENUE PAID
18 TO ALL DISTRICTS, AS DEFINED IN SECTION 22-54-103 (11).
19 (4) AS SOON AS PRACTICABLE, BUT NO LATER THAN DECEMBER 10
20 OF ANY EXCESS REVENUE BUDGET YEAR, THE DEPARTMENT OF EDUCATION
21 SHALL PROVIDE THE PROPERTY TAX ADMINISTRATOR WITH INFORMATION
22 SPECIFYING THE ESTIMATED NUMBER OF MILLS THAT EACH DISTRICT MUST
23 LEVY PURSUANT TO SECTION 22-54-106 (2). SUCH INFORMATION SHALL BE
24 PROVIDED FOR PURPOSES OF MAKING THE CALCULATION REQUIRED BY
25 PARAGRAPH (b) OF SUBSECTION (3) OF THIS SECTION.
26 (5) (a) FOR ANY EXCESS REVENUE BUDGET YEAR, THE GENERAL
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1 ASSEMBLY SHALL APPROPRIATE THE ENTIRE AMOUNT OF THE EXCESS
2 REVENUES CERTIFIED BY THE CONTROLLER PURSUANT TO SECTION
3 24-77-106.5, C.R.S., THAT IS REQUIRED TO BE REFUNDED TO FUND THE
4 STATE'S SHARE OF THE TOTAL PROGRAM FOR ALL DISTRICTS. THE MONEYS
5 APPROPRIATED PURSUANT TO THIS SUBSECTION (5) SHALL BE IN ADDITION
6 TO AND NOT A SUBSTITUTE FOR MONEYS OTHERWISE APPROPRIATED BY
7 THE GENERAL ASSEMBLY PURSUANT TO SECTION 22-54-106 (4) TO FUND
8 THE STATE'S SHARE OF THE TOTAL PROGRAM FOR ALL DISTRICTS.
9 (b) THE AMOUNT APPROPRIATED PURSUANT TO THIS SUBSECTION
10 (5) SHALL CONSTITUTE A REFUND OF STATE EXCESS REVENUES AND
11 THEREFORE SHALL BE EXCLUDED FROM STATE FISCAL YEAR SPENDING, AS
12 DEFINED IN SECTION 24-77-102 (17), C.R.S., FOR THE FISCAL YEAR FOR
13 WHICH IT IS APPROPRIATED. ANY APPROPRIATION FROM THE GENERAL
14 FUND PURSUANT TO THE PROVISIONS OF THIS SUBSECTION (5) SHALL NOT:
15 (I) BE SUBJECT TO THE LIMITATION OF SECTION 24-75-201.1,
16 C.R.S., SINCE SUCH APPROPRIATION CONSTITUTES A REFUND OF EXCESS
17 STATE REVENUES REQUIRED UNDER SECTION 20 (7) (d) OF ARTICLE X OF
18 THE STATE CONSTITUTION; AND
19 (II) BE INCLUDED IN THE CALCULATION OF THE MAXIMUM LEVEL
20 OF STATE GENERAL FUND APPROPRIATION PURSUANT TO SECTION
21 24-75-201.1 (1) (a) (II) (B), C.R.S.
22 SECTION 2. 22-54-103, Colorado Revised Statutes, is amended
23 BY THE ADDITION OF A NEW SUBSECTION to read:
24 22-54-103. Definitions. As used in this article, unless the context
25 otherwise requires:
26 (6.5) "EXCESS REVENUE BUDGET YEAR" MEANS THE BUDGET YEAR
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1 IMMEDIATELY FOLLOWING STATE FISCAL YEAR 1998-99, 1999-2000,
2 2000-01, AND 2001-02, AND FOR WHICH THE CONTROLLER, PURSUANT TO
3 SECTION 24-77-106.5, C.R.S., CERTIFIES THE EXISTENCE OF AN AMOUNT
4 OF STATE REVENUES FROM SOURCES NOT EXCLUDED FROM STATE FISCAL
5 YEAR SPENDING THAT ARE IN EXCESS OF THE LIMITATION ON STATE FISCAL
6 YEAR SPENDING IMPOSED BY SECTION 20 (7) (a) OF ARTICLE X OF THE
7 STATE CONSTITUTION; EXCEPT THAT AN EXCESS REVENUE BUDGET YEAR
8 SHALL NOT OCCUR IF THE VOTERS STATEWIDE AUTHORIZE THE STATE OF
9 COLORADO TO RETAIN AND EXPEND ALL OF THE AMOUNT OF STATE EXCESS
10 REVENUES SO CERTIFIED.
11 SECTION 3. The introductory portion to 22-54-106 (2) (a),
12 Colorado Revised Statutes, is amended to read:
13 22-54-106. Local and state shares of district total program.
14 (2) (a) Except as provided in paragraph (c) of this subsection (2) AND
15 SECTION 22-54-106.5, for reorganized districts, for the 1994 property tax
16 year and property tax years thereafter, each district shall levy the lesser
17 of:
18 SECTION 4. 24-77-103, Colorado Revised Statutes, is amended
19 BY THE ADDITION OF A NEW SUBSECTION to read:
20 24-77-103. Limitation on state fiscal year spending. (8) FOR
21 ANY FISCAL YEAR FOR WHICH THE CONTROLLER, PURSUANT TO SECTION
22 24-77-106.5, CERTIFIES THE EXISTENCE OF AN AMOUNT OF STATE
23 REVENUES FROM SOURCES NOT EXCLUDED FROM STATE FISCAL YEAR
24 SPENDING THAT ARE IN EXCESS OF THE LIMITATION ON STATE FISCAL YEAR
25 SPENDING IMPOSED BY SECTION 20 (7) (a) OF ARTICLE X OF THE STATE
26 CONSTITUTION AND THAT THE VOTERS STATEWIDE HAVE NOT AUTHORIZED
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1 THE STATE OF COLORADO TO RETAIN AND EXPEND, THE GENERAL
2 ASSEMBLY SHALL REFUND SUCH STATE EXCESS REVENUES BY ALLOWING
3 SCHOOL DISTRICTS TO REDUCE THE NUMBER OF MILLS LEVIED FOR SCHOOL
4 DISTRICT OPERATIONS AND OFFSETTING THE RESULTING REDUCTION IN THE
5 SCHOOL DISTRICTS' PROPERTY TAX REVENUES BY INCREASING
6 APPROPRIATIONS TO FUND THE "PUBLIC SCHOOL FINANCE ACT OF 1994",
7 ARTICLE 54 OF TITLE 22, C.R.S.; EXCEPT THAT THE PROVISIONS OF THIS
8 SUBSECTION (8) SHALL NOT APPLY IF THE VOTERS STATEWIDE AUTHORIZE
9 THE STATE OF COLORADO TO RETAIN AND EXPEND ALL OF THE AMOUNT OF
10 STATE EXCESS REVENUES. ANY AMOUNT SO APPROPRIATED SHALL BE IN
11 ADDITION TO AND NOT A SUBSTITUTE FOR MONEYS OTHERWISE
12 APPROPRIATED BY THE GENERAL ASSEMBLY FOR FINANCING PUBLIC
13 SCHOOLS PURSUANT TO SAID ACT.
14 SECTION 5. 24-77-106.5, Colorado Revised Statutes, is
15 amended to read:
16 24-77-106.5. Annual financial report - certification of state
17 excess revenues. (1) (a) For each fiscal year, the controller shall prepare
18 a financial report for the state for purposes of ascertaining compliance
19 with the provisions of this article. Any financial report prepared pursuant
20 to this section shall include, but shall not be limited to, state fiscal year
21 spending, reserves, revenues, and debt. Such financial report shall be
22 audited by the state auditor.
23 (b) BASED UPON THE FINANCIAL STATEMENT PREPARED IN
24 ACCORDANCE WITH PARAGRAPH (a) OF THIS SUBSECTION (1), FOR ANY
25 FISCAL YEAR COMMENCING ON OR AFTER JULY 1, 1998, THE CONTROLLER
26 SHALL CERTIFY TO THE GOVERNOR, THE GENERAL ASSEMBLY, AND THE
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1 EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE NO LATER THAN
2 SEPTEMBER 1 FOLLOWING THE END OF A FISCAL YEAR THE AMOUNT OF
3 STATE REVENUES IN EXCESS OF THE LIMITATION ON STATE FISCAL YEAR
4 SPENDING IMPOSED BY SECTION 20 (7) (a) OF ARTICLE X OF THE STATE
5 CONSTITUTION, IF ANY, FOR SUCH FISCAL YEAR.
6 (2) ANY FINANCIAL REPORT PREPARED AND CERTIFICATION OF
7 STATE EXCESS REVENUES MADE PURSUANT TO SUBSECTION (1) OF THIS
8 SECTION SHALL BE AUDITED BY THE STATE AUDITOR. NO LATER THAN
9 SEPTEMBER 15 FOLLOWING THE CERTIFICATION MADE BY THE STATE
10 CONTROLLER FOR ANY GIVEN FISCAL YEAR, THE STATE AUDITOR SHALL
11 REPORT AND TRANSMIT TO THE GOVERNOR, THE GENERAL ASSEMBLY, AND
12 THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE THE RESULTS
13 OF ANY AUDIT CONDUCTED IN ACCORDANCE WITH THIS SUBSECTION (2).
14 (2) (3) Notwithstanding any generally accepted accounting
15 principles to the contrary, financial reports prepared pursuant to
16 subsection (1) of this section shall not include any unrealized gains or
17 losses on investments held by the state.
18 SECTION 6. Safety clause. The general assembly hereby finds,
19 determines, and declares that this act is necessary for the immediate
20 preservation of the public peace, health, and safety.