1. Colorado School Finance Primer
Impact On Archuleta School District 50 Jt.
School Year

2. Colorado School Finance (Equalization)
Enacted in 1994 by the Legislature
“Your quality of education should not be determined by your zip code.”
Base funding plus “factors” to create a Per Pupil Revenue (PPR)
Local share of property taxes plus State share
As of 2010, Capital Reserve was eliminated from PPR
Lobato suit: “No rational basis for funding formula”
P.2

3. Gallagher Amendment Enacted in 1982 by Statewide vote (65%)
Taxes assessed value of business and residential property differently
Business = 29.00% of property value taxed
Residential = 7.96% of property value taxed
CDE Posting about Gallagher
CSU presentation on Gallagher
P.3

4. TABOR Amendment Enacted in 1992 by Statewide vote (53.6%)
Establishes growth plus inflation limits on tax revenue
Uses Denver-Boulder CPI
Requires vote to raise any tax
New taxes
Retaining taxes
Debt and obligations
Colorado Treasurer
P.4

5. Amendment 23 Enacted in 2000 by Statewide vote (52.7%)
Requires growth + inflation for base funding
Provided 1% catch-up for 10 years
Inflation is based on CPI
Interpretations around the intent led to an across the board cut in 2010, called the Negative Factor
Denver Boulder Consumer Price Index
P.5

6. Negative Factor Enacted in 2010 by the Legislature
Applies a percent cut to School Finance Act
Courts recently ruled Negative Factor is NOT in conflict with Amendment 23
Amounts to approximately 12.1% annual cut in program funding to most districts
($9.0M for ASD: to )
Total statewide cut = $855.2 million (ASD=$1.38M)
CDE School Finance Brochure
P.6

7. Net Effect
Districts increasingly look to local community support, as in additional taxation, for capital maintenance and general fund shortfall support (Bonds and MLO).
ASD State Ave.
Mill Levy 2008: Mills Mills
Mill Levy 2016: Mills Mills
P.7

8. 2015-16 Mill Levy Tax Calculations (per $100K of Market Value)
Residential
Non-residential
Portion of residential / business market value
$100,000
Tax factor on market value
7.96%
29.00%
Taxable value (Assessed Valuation)
$7,960
$29,000
x Mill levy rate for FY (final)
24.737
/ Mill factor
1,000
Property taxes per year for each $100K in residential / business market value
$197/yr
$717/yr
P.8

9. MILL LEVY RATE COMPARISONFY FY
ARCHULETA
BAYFIELD
DEL NORTE
DOLORES
DURANGO
IGNACIO
MANCOS
MONTE VISTA
STATE AVERAGE *
SFA Program Formula Mills
21.014
8.229
16.308
20.883
6.601
2.274
15.658
27.000
20.529
(Local Share)
Hold Harmless Override Mills
0.000
0.135
1.931
0.236
Voter Approved Override Mills
7.933
9.444
7.062
4.125
2.571
7.082
3.826
8.620
Abatement Mills
0.147
0.141
0.033
0.055
0.066
0.005
0.302
Bond Redemption Mills
3.576
3.370
5.269
7.752
6.367
6.620
11.450
8.770
TOTAL MILL LEVY
24.737
24.525
21.599
25.807
35.697
19.090
11.470
22.740
42.578
39.006
Override Mill Levy Revenue $0
$2,051,187
$832,636
$390,023
$8,220,962
$1,100,186
$333,790
$194,955
Override Revenue as % of Total
0.00%
18.98%
19.01%
6.26%
21.48%
16.14%
8.44%
2.18%
Program Formula Revenue
P * Note: The Total Mill Levy for the "State Average" includes mills for levies not listed above such as Categorical Buyouts, Excess Hold Harmless, Transportation, Special Building & Technology, and Full Day Kindergarten.

10. Quick facts about a “Mill” in ASD
1.000 Mill generates $270,774 annually
1.000 Mill costs $7.96/year per $100,000 market value of a Residential property
1.000 Mill costs $29.00/year per $100,000 market value of a Non-Residential property
Mills are used to generate annual revenue for general operations (Mill Levy Override) and for capital borrowing (Bond)
P.10

11. Questions? Linda Reed Superintendent P.O. Box 1498 309 Lewis Street
Pagosa Springs, CO
x 402
Mike Hodgson
Finance Director
P.O. Box 1498
309 Lewis Street
Pagosa Springs, CO
x 403