In a mid-term election that the Denver Post called a “killing fields for tax measures,” 64% of Colorado voters defeated a ballot initiative intended to fund K-12 and higher education with new tax revenue.
Coming on the heels of a $200 million cut to the Colorado K-12 budget, Proposition 103 would have raised the Colorado sales and use tax from 2. 9 to 3 percent, corporate and individual rates from 4. 63 to 5 percent, and designated approximately $2. 9 billion of new revenue to K-12 and higher education. While Proposition 103’s defeat was not unexpected, the resounding scale of the defeat came as a surprise to many, including national lawmakers.
Because the Colorado constitution forbids the legislature from raising taxes, Democratic state senators petitioned the tax measure onto the ballot; however, many prominent Democrats, including Gov. John Hickenlooper, declined to publically support the initiative. Republicans solidly opposed the measure.
While supporters of Prop 103 raised 10 times more money than its opponents, the ballot’s 2 to 1 defeat sent a clear message: Colorado voters are unwilling to consider higher taxes, despite deep budget cuts to high-priority local services such as schools.
On the final day of what was a primarily mail-in election, Gov. John Hickenlooper released the following year’s budget proposal, calling for an additional $89 million in cuts for public schools.
While it is unclear if the defeat of Colorado’s Proposition 103 can be considered a harbinger of the 2012 elections, it is certainly a barometer of the current mood in Colorado and, by extension, other fiscally conservative states such as Oklahoma. Colorado is considered critical to President Obama’s reelection strategy; therefore, the public reaction against tax-based revenue may have policy implications as his presidential platform continues to develop.
. …The deal to raise the U. S. Debt Ceiling by $2. 7 trillion places 10-year caps on federal spending, requires a $7 billion reduction in the 2012 budget from 2011 levels, and creates a new congressional “Super-Committee” charged with recommending $1. 5 trillion additional cuts over the next decade. The Committee's suggestions, if approved by a majority of its members, will be guaranteed a vote; however, failure of the Committee to agree on reductions by November 23rd will trigger automatic cuts, or “sequestration” of funds, to agencies.
According to the Committee for Education Funding, if funds are sequestered, projected cuts will be about 6. 7% across most agencies. To the Department of Education, that translates to a $3 billion reduction in 2012. Michele McNeil, for Education Week, notes that while automatic cuts would remove “a lot of money” from ED's budget, the legislation is designed to avert such a result.
At this point, the true impact of the debt compromise on K-12 Education is difficult to surmise, since only spending caps have been enacted, with no suggestion of how the smaller budget pie will be distributed. What we do know is that on the heels of last year's $1. 25 billion cut to the Department of Education, we can expect additional funding reductions in 2012. Within the Department of Education, we know that the Pell Grant Program received a hard-fought reprieve. Relative to the Department's other discretionary programs, it is likely that the trend of consolidating funds in top-tier, high-profile competitions such as i3, Race to the Top, and Promise Neighborhoods will continue. …
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