A bill approved 56 to 9 by the state House of Representatives on Wednesday would provide school districts an alternative way to patch funding holes caused by cash-flow shortages if Amendment 61 passes on November’s ballot, The Pueblo Chieftain reports.
According to Senate Bill 205, the state provides about $471 million a year in interest-free loans to Colorado school districts with cash-flow issues. The loans are repaid by the districts within the same fiscal year they’re issued.
Amendment 61, which would limit state and local borrowing, would make it illegal for the state to issue these loans.