How do TABOR and Gallagher combined affect public schools?
The Gallagher Amendment has resulted in decreases in the residential assessment rates since it was passed by voters in 1982. It did not have a large impact on school funding before TABOR (1992) because school districts could “float” their mill rates (that is, they could increase their property tax rates to compensate for the decrease in the assessment rate, thereby maintaining an adequate base to fund schools). After TABOR, every mill levy increase has to be approved by the voters. After 1992, while skyrocketing residential property values triggered ongoing reductions in the assessment rate because of the Gallagher Amendment, school districts couldn’t increase their mill rates without a vote of the people. Consequently, during the 1990s, the local contribution to K-12 education continuously decreased. At the same time, TABOR’s strict spending and revenue limits prevented the state legislature from fully compensating for the loss of local funding for schools. K-12 funding lagged behind
