After budget deal, lawmakers revisit K-12 cuts looking to restore some funding
By Tim Hoover
The Denver Post
Posted: 04/19/2011 01:00:00 AM MDTUpdated: 04/19/2011 06:40:24 AM MDT
The ink isn't dry yet on a state budget deal that would cut K-12 education by $250 million, but now there's talk of a new agreement that would shrink the cut to just $160 million.
The new deal is being led by House Democrats and Rep. Tom Massey, R-Poncha Springs, the head of the House Education Committee.
"For two weeks, we have been meeting with Rep. Massey to work on a plan to offset the cuts to K-12," said House Minority Leader Sal Pace, D-Pueblo.
Massey said the plan is to restore about $90 million of the proposed cuts, something he said would allow districts across the state — especially in rural areas — to absorb funding decreases far more easily.
The state budget deal originally agreed upon by the Democratic-led Senate, the GOP-controlled House and Gov. John Hickenlooper, a Democrat, called for a $250 million cut to K-12 education. That was still less than the original $332 million cut to K-12 that Hickenlooper had proposed, but an improved budget forecast in March reduced the size of the state's $1 billion shortfall by half. Lawmakers then haggled over how much education spending to restore versus restoring tax breaks for businesses.
Now, there may be a way to restore more K-12 funding, say Pace and Massey. The deal would take $22.5 million from the State Education Fund, a savings fund set up for K-12 funding. Hickenlooper wanted the fund to have no less than $100 million in it, and taking $22.5 million out of it won't violate that condition.
Tax breaks vs. K-12
The remaining $67.5 million would come from what lawmakers think will be an improved revenue forecast in June. Early indications show revenues are still improving and will be higher by then.
House Republicans have repeatedly said the state should restore all the more than $100 million in tax breaks that a Democratic-controlled legislature eliminated or suspended last year, but so far, Hickenlooper and Democratic lawmakers have agreed only to the restoration of two. One, worth about $3.7 million, is for agricultural products, while the second, worth up to $24 million, is for downloaded or installed software.
But Massey said that any additional revenue expected should go first to education, not to restoring more tax breaks.
"If public education isn't out priority, our priorities are skewed," he said. "We don't have small business and we don't have economic development without public education."
Republicans hold a 33-32 majority in the House, so if needed, Massey and 32 Democrats could join together to muster the necessary 33 votes to pass the deal.
Massey said that may not be necessary. He said he has told House Republican leaders everything that's happened in the negotiations.
"They're fully aware of what I'm doing," Massey said. "They're letting me run with this. My leadership has been nothing but supportive of this. They've never tried to say, 'No, you can't do this.' "
Some wary of the plan
House Speaker Frank McNulty, R-Highlands Ranch, said there was "broad agreement" among Republicans that the cuts to K-12 education should be reduced as much as possible.
"Certainly, Tom's having those discussions, and none of it's happening outside of anyone else knowing about it," McNulty said. "Tom's never tried to go out and cowboy at all."
Would House Republicans support Massey's plan?
McNulty said only that House Republicans "recognize the importance of investing in education."
Massey's committee Monday passed out the annual school finance bill that now contains the $250 million cut, but the plan is to amend the bill on the House floor next week to shave down the cut, he said. The bill then could be sent to the Senate, where it's likely majority Democrats will embrace it.
What's unclear is how Hickenlooper will react to such a new wrinkle in the budget.
"The governor is discouraging any last-minute proposals that could unravel bipartisan agreement on the state budget," said Hickenlooper's spokesman, Eric Brown. "He's also expressed his concern to Rep. Massey that we not try and backfill education funding this year based solely on hopes of future revenue. That only makes the problem worse next year."
Tim Hoover: 303-954-1626 or thoover@denverpost.com
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