First Regular Session Sixty-ninth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 13-0320.01 Brita Darling x2241 SENATE BILL 13-006 SENATE SPONSORSHIP Balmer, HOUSE SPONSORSHIP (None), Senate Committees House Committees Education A BILL FOR AN ACT Concerning a prohibition on reducing funding to public schools to finance the optional expansion of the medicaid program to persons not traditionally eligible for medicaid. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) For the 2014-15 budget year, and each budget year thereafter, the bill prohibits the general assembly from expending state moneys to participate in the federal "Affordable Care Act" if the effect of those expenditures is to decrease funding for Colorado's public schools by reducing the state's share of total program funding for school districts and institute charter schools, or by failing to compensate for a reduction in local school funding. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add 22-54-106.7 as follows: 22-54-106.7. Prohibition on reducing education funding to fund optional expansions to medicaid - legislative declaration. (1) Legislative declaration. (a) The general assembly hereby finds that: (I) Providing children with a kindergarten-through- twelfth-grade education is one of the highest priorities for state government; (II) Colorado has demonstrated its commitment to children's education over the decades by being a national leader in significant public school reforms, including the expansion of charter schools and other school options that allow parents to determine the best option for their children, and also through reforms such as teacher accountability, student assessment, and school district financial transparency; and (III) As Colorado strives to foster economic development and create new jobs, kindergarten-through-twelfth-grade education is vital to maintaining a highly trained workforce. (b) The general assembly further finds that: (I) During the national recession, president Obama signed the federal "Patient Protection and Affordable Care Act", P.L. 111-148, on March 23, 2010, referred to in this section as the "Affordable Care Act"; (II) Under longtime medicaid eligibility rules, specific categories of persons are covered, including children, pregnant women, a limited number of medicaid parents, the elderly, blind, and persons with disabilities; (III) The "Affordable Care Act" significantly expands the medicaid entitlement program by including "newly eligible" populations, including able-bodied adults without dependent children; (IV) According to the Kaiser family foundation, this unprecedented expansion of public assistance could cost Colorado eight hundred fifty-eight million dollars over the next ten years; (V) In ruling on an appeal seeking to enjoin the "Affordable Care Act", the United States supreme court determined that due to the unprecedented nature of the medicaid expansion pursuant to the act, states must be given the right to choose whether to participate in the medicaid expansion to these newly eligible populations without risking federal funding for the traditional medicaid program; and (VI) Appropriating general fund dollars to expand participation in the medicaid expansion under the "Affordable Care Act" will necessarily reduce moneys available to fund kindergarten-through-twelfth-grade education in Colorado. (c) Therefore, the general assembly declares that: (I) Preserving the general fund revenues necessary to adequately fund kindergarten-through-twelfth-grade public education is a much higher priority than expanding a public entitlement program beyond its historical purpose; and (II) The general assembly shall not expend any state moneys to participate in the medicaid expansion under the "Affordable Care Act" if the effect of those expenditures is to reduce funding for Colorado's public schools. (2) Prohibition on reducing education funding. For the 2014-15 budget year, and each budget year thereafter, the general assembly shall not expend state moneys to participate in the medicaid expansion under the "Affordable Care Act" if the effect of those expenditures is to decrease funding for Colorado's public schools by reducing the state's share of total program funding for school districts or institute charter schools, or by failing to compensate for a reduction in local school funding. SECTION 2. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 7, 2013, if adjournment sine die is on May 8, 2013); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2014 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.