Q & A SCHOOL CHOICE 2003
BY Sen. Bruce Cairns in Bullet answers
BILL-IN DRAFT STAGE-YOUR PARTICIPATION; LISTENING
DRAFT

What is the name?
“Property Tax offset.”

Why?
It is not a tax refund, or a voucher, or a credit against taxes already collected.

Why did you use property tax?
It is the most personal tax we have. It is on our dwelling. It pays OUR, or other, kids’ education.

Does the state budget have any funds for school choice?
No, revenues are down and there is no “TABOR surplus.”  

What of Amend 23? 
It is only for public schools. See below for increases the past 2 years.

Does Amend 23 have money? 
Yes, in various forms, it has about $300m a year. 

Will your “property tax offset”  (PTO) take from the Public Schools? 
Yes, many feel economically that competition is good. The amount, though, will be spread around every property in Colorado. Remember, also, that by the finance act, that as schools lose enrollment it is averaged over about 4 years; so there is a beneficial buffer built in.

Does PTO have a “backfill” for Public Ed? 
No, since Amend 23 vastly increased funding. No, because competition will make all educational delivery systems cost less.

If, PTO, effectively, sends less money per district, will the state or county sources be required to make ii up?
No, the School finance act is adjusted on assessment, and levy, not monies received.

Could, or would, the districts go to the voters for more operating funds, from PTO and the budget shortfalls? 
Yes, if the Boards wanted to vote to refer that to the voters.

Doesn’t this seem complicated?
No, it is not, when we decide we want to address the unfairness of non-public school attendees paying double for their education in taxes and tuition!

Does this have any intention of bringing about educational reform?
Yes, just as the electronics industry has had an explosion of higher performing, higher quality, and lower price products, so also, we will bring higher quality and better prices to all education.

What about teachers – won’t they lose out?
The empowered parents will follow the best teachers to the best schools as 
long as market forces are unfettered.

How will the above do that?
It will work, and the only way for school choice to work, is unfettered and unregulated. The teachers and students will be the sought after commodity. All facets of education will be better for the challenge.

Is this anit-public school?
Now way. As below, it has public school student aid. It is not anti-public – it is only pro-competition!

Aren’t there a lot of pieces in this bill? Why?
It sets up Student Tuition Organizations (STO[‘s]), which are designed to operate autonomously. They operate without government subsidy or government strings.

More pieces? Where did the dollar figures, STO’s, and flow of the bill originate from?
Arizona’s STO bill. It was also used since the Arizona model has survived that state’s Supreme Court and evidently of no concern to the US Supreme Court who let the AZ case stand by refusing to hear it.

A Question: Does not AZ bill just support higher income families?
Looking at their STO list, it appears it does not.  
PLEASE NOTE: In the Colo. bill, there is a unique provision that the non-property owner, or lower income family (has “means” requirements), can initiate and access the scholarships by assigning their offset(s) to an STO.

Where does the STO get the money to supply these assigned scholarships?
The STO can sell the offsets at a discount to better off people to create an incentive.
This is much like the idea of packaged low income housing tax credits that people buy. THIS WIILL PROVIDE SCHOOL CHOICE FOR LOW INCOME OR LOW PERFORMING SCHOOL FAMILIIES.

I’ve heard of the alleged high costs of private schools, and am concerned if you use offsets it will not help those that pay little or no tax?
That’s what is unique to the PTO – having the assignable offset.

Why not a voucher after the Zelman case was reported in June?
Vouchers go in and out of government. Experience shows that once money comes from government, government then attempts to control it. Cleveland does confirm school choice.

Are you concerned about “Blaine Amendment?”  
Since the Colorado Constitution now, although unchallenged, stipulates no funding to religion; then it seems wise to use tax credits or offsets; not vouchers out of government.

Does any other state use property tax offsets to make school choice more equitable?
No, other states use income tax credits, corporate tax credits, or income tax refunds for low income folks. Colorado would be leader in this area. This is a choice it should support.

What if I do not pay my property tax in cash?
The PTO has provisions for Escrow account refunds, or renter refunds for the extra circular public school expenses.

Will the face amounts of the offset go very far to help with my kid’s school?
You or the STO can find multiple property owners to give. Then you will be closer to the price of the tuition. The STO will set the policy of the portion of support. The mean price of 67 private schools was only $2625 in 2001, so a few offsets will go very far.

Will not the price go up with all the support for less non-public schools?
Good economics would say, as more choice schools would open, the price would drop.

What about accountability in all the various formats of non-pubic schools?
The free market forces will be the best arbiter of this possible; no service-no tuition income.

Why is there a public school piece in the PTO?
Public School kids have costs beyond their state-supported pupil funding. The PTO covers extras like tutoring, lab material, sports equipment, music, and extracurricular.

What if I run out of property tax credits to help means tested kids?
The sponsors are looking for feedback. Maybe we could offer an amendment in a house committee to phase in a tax credit of say, years 1-10 implemented, with initial tax credits (not against surplus) of $2m to $20 million ($2m added each year), and then a double tax credit afterwards that has unlimited totals. This could be an amendment since the bill has early introduction.

Will this save the state budget money?
Yes, it has to! If 1-2% per year changed enrollment to choice schools, then after 10 years, that could be 100,000 kids. If the PPOR will be $6500 in 10 years the potential savings will be about $650,000,000 in year 10.

Why not KISS (keep it simple salesman) and just do an offset to one’s own school  (portion) property tax total?
An amendment could be proposed that way, but it would drastically reduce the assistance potential to low income kids by dropping the assignable multiple offsets. With only one offset per medium income, home owning, family, it only partially helps one kid; about 1/3 of the PTO potential. It would severely reduce the opportunity for the STO to have many people participate to support their constituent kids.

DRAFT