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Lawmakers hear DRA study proposal to generate $500 million for school adequacy
Summary
Representative Thomas Opel asked the committee to direct DRA to produce five options to raise roughly $500 million a year to meet court‑identified school funding gaps; DRA told lawmakers the study is feasible but will likely require outside consultants and steering‑committee guidance to limit scope and cost.
Representative Thomas Opel introduced House Bill 16‑36 to the committee as a fact‑finding request asking the Department of Revenue Administration (DRA) to develop five distinct revenue options—each capable of producing about $500 million annually—to address a court‑identified shortfall in school funding and reduce local property tax burdens.
This is a study, not a tax bill: Opel emphasized HB 16‑36 does not itself impose taxes but asks the DRA to return with detailed, transparent options (estimates, distributional impacts, legal and administrative considerations) so the legislature can make informed policy choices before the 2027 budget cycle.
DRA capacity and cost: Jennifer Ramsey, tax policy counsel at DRA, said the agency would need a steering committee and likely outside consultants to complete the work. Ramsey provided preliminary consultant cost estimates to the committee ranging from about $175,000 to $600,000 depending on the number and types of taxes analyzed and recommended narrowing the menu or establishing a bipartisan steering group to guide the scope.
Public testimony and local officials: School board members, municipal officials and taxpayers urged the study, saying local property taxes have risen as state funding lagged. Witnesses urged DRA to model common revenue tools (income, sales, statewide education property tax, business taxes) and to include distributional analyses showing impacts by household income, residency status and business type.
Next steps: The committee asked for more precise fiscal notes and discussed possible guardrails and steering committee membership. No final vote occurred; the committee sought follow‑up on DRA capacity and consultant costing before advancing the measure.
