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A multibillion-dollar state budget deal got sidetracked Thursday by an ongoing flap over the American flag in public schools.

Gov. Bill Owens skipped a noon news conference to announce the deal to push statehouse Democrats to back a measure that would punish schools that ban students from displaying the American flag.

Lawmakers waited more than 30 minutes for Owens to show up before they started the news conference on the Capitol steps without him.

Wednesday night, the governor’s staff shook hands with Democrats and bragged about the budget deal. But Thursday he decided he wasn’t satisfied with the $4.8 billion school- finance act because lawmakers had removed the flag-ban provision.

“He has particularly strong feelings that American students should be able to display the American flag at American schools,” said Owens spokesman Dan Hopkins, explaining why the governor was a no-show.

The concern arose after metro- area schools attempted to reduce tensions over the immigration debate by forbidding students to wear clothing with flags or that makes a political statement.

By not showing up, Owens stiff-armed the bipartisan back- patting on the Capitol steps, put some fellow Republicans in an awkward spot and outraged a chief Democratic negotiator.

“I don’t understand how this can possibly unravel like this,” said Jack Pommer, D-Boulder. “We had an agreement. We worked hard for the agreement. I mean we gave in a lot.”

Democrats agreed to give an extra $2.8 million for charter- school construction. They backed off a demand that preschool programs have enough funding for 6,000 new students over the next three years. They lowered the amount of money going to special education this year.

Those compromises on the $16.5 billion state budget and related $4.8 billion school-finance act were supposed to let both bills move forward this week.

But no one told the lawmakers and other supporters gathering in the midday sun that the deal had been undone because of the flag.

On the steps, University of Colorado president Hank Brown praised lawmakers for striking the deal.

“This agreement is a remarkable achievement and a great demonstration of statesmanship both on the legislative level and on the governor’s level,” he said.

Inside the Capitol on Thursday morning, Republican senators threatened to oppose the school-finance act because there was no way to punish schools that ban the flag.

“I’m sick and tired of people disregarding laws we have on the books because we don’t have enforcement, and that’s what’s happening, and that’s a horrible example for the schools to set for our kids,” said Sen. Doug Lamborn, R-Colorado Springs.

Earlier this week, a committee of lawmakers, including two Republicans, said the flag-ban provision was unneeded because state law already prohibits principals from enacting such bans.

Throughout the week, budget talks focused on financial details, not the flag ban.

By late Thursday, lawmakers and the governor’s office were scrambling to complete a new deal that would punish flag- banning schools, but the details had not been released.

Lawmakers remained frustrated.

“We’ll just turn the schools into flag museums,” Pommer said.

Staff writer Chris Frates contributed to this report.

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