Are required increases in K-12 funding
at odds with other
constitutional provisions?
What is Amendment 23?
Amendment 23 is an amendment to Colorado’s constitution
approved by voters in 2000. The basic aim of Amendment 23 is to
increase spending on kindergarten through twelfth grade (K-12)
public education. Amendment 23 also creates a special fund—the
State Education Trust Fund—to help pay for the increased
spending.
Why do we need Amendment 23?
Funding for K-12 education in Colorado had been declining through
the eighties and nineties. The amount the state spent on K-12
education had not kept pace with inflation and by 1999 K-12 spending
was lower (when adjusted for inflation) than it had been in 1988.
In order to “catch Colorado up” and help keep pace
with inflation, Amendment 23 requires K-12 spending be increased
by at least inflation plus one percent each year for ten years,
and then by at least inflation thereafter.
The Mind
of Colorado 2003:
How Coloradans Feel About
Changing Amendment 23
Amendment 23 requires annual increases in funding for K-12
education. When revenues drop due to recession, this requirement
forces large cuts to other parts of the state’s budget.
Should Amendment 23 be modified to give the Legislature
flexibility in times of recession to cut education along
with other programs, or would you prefer to keep Amendment
23 as it is?
Modify: 26.9%
Keep: 68.6%
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What is the State Education Fund?
The State Education Fund established by Amendment 23 receives
a portion of Colorado state income tax each year. The money in
the fund can be used for the increased spending requirements of
Amendment 23 or other educational spending. However, the current
economic decline has reduced tax revenues thereby reducing the
amount of money going into the fund. And, at the same time, lawmakers
have had to rely more and more on the fund to meet the spending
requirements of Amendment 23. As a result, according to one recent
study, the State Education Fund could be insolvent as early as
2005-2006.
How does Amendment 23 work in bad
economic times?
The increased spending requirements of Amendment 23 do not go
away when revenues decline. Although Amendment 23 does allow the
state to draw more heavily from the State Education Fund in bad
economic times, thereby relieving pressure on other state spending,
the increases are still required. Furthermore, if the State Education
Fund should become insolvent, the increases would still be required
and the money will then have to come from other areas of the budget.
Has Amendment 23 contributed to Colorado’s
budget problems?
Since Amendment 23 requires an increase every year in K-12 spending,
it may be seen as in conflict with the Taxpayers’ Bill of
Rights (TABOR), another constitutional amendment that sets limits
on budgetary spending in Colorado. To make matters worse, because
of the way Colorado funds K-12 education, Amendment 23 is also
affected by Gallagher, another constitutional amendment that has
resulted in declining residential property taxes. Since the state
is required to make up the difference between the contribution
of local property taxes and the total required K-12 funding, if
property tax revenues decline, then the burden on the state is
even heavier.
For a more detailed description of Amendment
23, read Amendment 23 101.
Read about proposals
to change Amendment 23.
For links to other resources about Amendment
23, click here.
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