Coloradans Against Unions Using Kids as

Pawns

Vote NOAmendment 66

Colorado’s Special Interest Education Industry

Their argument: if we’d spend more - Dropout rates would decrease- Test scores would go up- Children would learn better

Their solution: raise taxes “for the kids”

Not So Fast…

Colorado’s Schools: Top Heavy

• Less than half of public school employees are teachers

• Between 1992 to 2009– public school administrators has increased 83%,– the number of students increased by only 38%– ROI = stagnant / null

• In 2009 – students to non-teaching staff 1:15 – student to teacher ratio: 1:17

But Did You Know?

• Even after the recession, Colorado’s real per-pupil spending has grown in past 10 years

• Colorado K-12 could save at least $330M/yr just by keeping same ratio of NON-teacher employees to students as 20 years ago

• Currently, there is a $1.6 Billion balance in State Education Fund

What is Amendment 66?

Two-part process:1. SB13-213 (141 pages) Legislation

to change the public school funding formula

2. Nov 5. ballot issue needs voter approval to raise estimated $1B annual tax to implement the new funding scheme

No cap: Tax collections grow annually as the economy improves

How Much Will You Pay?

Redistribution = a two-tier progressive tax rate• An estimated 68% of families will see their income

taxes increase by 8%. • Those earning more than $75,000 (the remaining

32%) will be taxed even more, up to a 27% increase. Is that fair?

• Taxpayers in some districts will pay substantially more – in some almost twice as much - than they receive for student funding

How Does The Redistribution Work?• More $$ for full-day kindergarten and preschool ($250

million/year for paid childcare)• More $$ to districts with highest # of at-risk students • More $$ to English Language Learners (ELL)• More $$ for Special Education • Charter schools receive about $1,000 less per student• Picks winners and losers – some districts will be required

to seek additional tax increases if per pupil falls short of new formula requirements (in addition to the billion dollars a year)

• Removes local control – Centralizes and directs spending from the state level

Bait & SwitchProposed “reforms” could actually cost more than $1B/yr•The Billion Dollar Tax is part of a strategy to repeal TABOR, the Taxpayer’s Bill of Rights•A future voter initiative will be to ban TABOR•Repealing TABOR would allow legislators to raise taxes to increase funding for anything, such as public schools or PERA mandates. •You would lose your right to vote on how much tax you pay or how it is used.

100+ performance-based reforms were rejected:

• Tie at-risk student funding to test scores, in order to connect student performance with funding.

Senator Scott Renfroe (R-Greeley)

• Guarantee charter schools full parity in funding. Rep. Kevin Priola (R-Brighton)

• Raise teacher pay based on performance. Rep. Carole Murray (R-Castle Rock)

• Doesn’t address tenure; doesn’t address growing burden of paying PERA pensions

More Money Does NOT Equal Reform

Ed policy is highly regulated and political.

Prioritizes interests of the adults (unions, legislators) over that of our kids

“For The Kids”?

•The Billion Dollar Tax would enable school districts to work-around required voter approval to pay more tax money for the pensions of government workers.

•Estimates are that Public Employee Retirement Association (PERA) could receive between 20%-50% of the tax increase.

Quick Background on PERA Public Employees Retirement Assoc.

• $26 billion unfunded liability owed to PERA members• PERA pays a Defined Benefit, instead of Defined Contribution• A tax increase to directly fund PERA would require a vote.

The Billion Dollar Tax is a clever work-around that allows school districts to “substitute” funds from their existing ed budget

The Billion Dollar TaxUnaccountable, Unwise, Unfair

It’s wrong to use kids as pawns

Unaccountable

• Redistribution – ensures no student has any educational advantages over another

• Not a single reform measure– No measures to reduce class size– No plan to improve test scores– No guarantee of learning resources for students– No performance-based funding

• Severely limits local control by elected School Boards• Encourages “substitution” so school districts can fund

PERA without a vote of the people

Unwise – Hurts Families and Kills Jobs

• Annual hit on taxpayers with no limit as to how much may be collected if the economy improves

• Small businesses owners will have a greater burden if their taxable income exceeds $75K

• Less money for businesses to create jobs; less money for household budgets; no guarantees that students learn more or better

UnfairWill your tax dollars even go to your kid?

Taxes from one school district are given to another using funding formulas crafted by bureaucrats in Denver– Example: Jefferson County has 10% of the State's pupils, but

would receive back only 7.8% of the new tax they pay. That's a negative -2.2% outcome.

– Denver has 9.5% of the State's pupils and would receive 16.4% of the new taxes. Benefit: + 6.9%

How much more can you afford to give to government? We’ve heard this before: “Trust us with more of your

money, and we’ll fix the education system.”

Where Does the Money Go?• Into a new State Education Fund• Controlled by an appointed, not elected, board• Funding based on weighted student counts• Changes how students are counted

– English Language Learner can be double-counted as at-risk student and weighted more in an urban v. suburban school

• Redistribution is key to the funding formula– For every new tax dollar JeffCo citizens pay, local

JeffCo schools get only 56 cents in funding

A Blank Check • Largest-ever tax increase in Colorado history • A progressive tax: those earning more, pay more• No guarantees that kids will learn more• Only needs to be approved one time• Recurring annual tax increase• There is no cap on how much can be collected

You Can Choose to Help!

• Vote No on the Billion Dollar Tax on Nov. 5th• Donate securely online www.kidsnotpawns.org• Volunteer for our Speakers Bureau• Talk with your friends, family, neighbors and co-

workers about why this bait-and-switch redistribution scheme is unaccountable, unwise, and unfair for Colorado

Spread the Word

1. Like us on Facebook.com/KidsNotPawns2. Follow us on Twitter: @NoOn66CO3. Visit our website: www.KidsNotPawns.org

I’m a No Vote on 66

Coloradans Against Unions Using Kids as Pawns

Ask me whywww.kidsnotpawns.org