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.
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.
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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.
Full article link follows:
http://www.coloradobudget.com/amend23.cfmAlso, lots of other snippage went on.