DENVER-
Acknowledging it will probably be a major campaign issue next year, Gov. Bill Ritter signed a school finance bill Wednesday that includes a property tax provision that opponents say is illegal.
The law is expected to raise an estimated $1.7 billion for education over 11 years by freezing property tax rates in districts with relatively low tax rates, blocking any declines for the foreseeable future.
In some districts with the highest rates, the property tax rate would be reduced.
Ritter promised to stand behind lawmakers who supported the bill if they are criticized over it in their next campaign.
“I just want to thank the legislators who know this was a politically difficult because of the swing districts they live in and the way they’re going to be campaigned against,” he said.
“I’ll tell those legislators I’ll die in a foxhole with those legislators who looked me in the eye and say, ‘I know this is difficult, but it’s the right thing to do and I’ll do it with you,'” Ritter said.
Opponents, including Republican legislative leaders, said it amounts to a tax increase and that the state constitution requires it be put to a statewide vote, rather than simply be passed by the Legislature and signed by the governor.
“It’s not clear if our new governor is more naive or stubborn in pushing ahead with this thing. He is asking taxpayers for $1.7 billion over the next 10 years, only he’s not asking for their permission,” said Senate Minority Leader Andy McElhany, R-Colorado Springs.
Ritter praised the measure as good government legislation that will avoid a fiscal disaster that could cause the State Education Fund to go broke in the next four years.
Ritter said if that happens, it will spill over into other major programs in the budget.
“It’s called the School Finance Act, but it’s about so much more: higher education, health care, human services, economic development and other important services,” Ritter said as he signed the bill on the west steps of the Capitol, surrounded by school children.
Jon Caldara, president of the conservative Independence Institute think tank, said he plans to file a lawsuit challenging the constitutionality of the new law. He said it’s a tax hike that needs to go to voters.
“This is basically fiscal date rape. This is about asking the people first,” Caldara said.
