Gov. Bill Ritter today signed the School Finance Act into law, praising it as good-government legislation that avoids a fiscal calamity that would have struck in 2011.

"In November, we were elected by the voters of this state to solve problems, to bring pragmatic solutions to the very real challenges facing Colorado," Gov. Ritter said during the signing ceremony on the West Steps of the state Capitol. "Today, we are fixing a big problem.

"I'm signing Senate Bill 199 here at the Capitol because it represents good government. 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. This law will make a difference in the lives of Coloradans for years to come."

Ritter, citing widespread bi-partisan support for the Act from around Colorado, was joined at today's ceremony by state Treasurer Cary Kennedy; Nancy McCallin, president of the Colorado Community College System; and Harry Lewis, a longtime civic leader who currently heads his own investment firm and serves on the Colorado Forum and Colorado Economic Futures boards.

"This is a historic moment because the new School Finance Act that Gov. Ritter is signing today is landmark legislation," Treasurer Kennedy said. "It ensures that improving funding for education does not result in dramatic reductions in Colorado's other critical priorities."

The Act increases total funding for education in Colorado by $310 million, a 6.6 percent increase. An amendment to the Act will keep the State Education Fund from becoming insolvent in 2011 as projections called for. Other benefits of the Act:

* Allows popular votes in 175 of 178 school districts around Colorado to take effect, enabling these districts to retain revenues over their TABOR limits.

* Begins to address the growing inequities between the state share of K-12 education funding and the local share. Twenty years ago, local districts picked up 60 percent of total costs. Today, the state pays about 65 percent. In 10 years, it will be nearly 75 percent. Increased state funding means a loss of local control.

* Keeps $42 million in the State Education Fund in FY07/08 that otherwise would have been spent by stabilizing the local share of K-12 funding. Without the stabilization, the General Fund would continue to be forced to back fill the Ed Fund. In FY11/12 and FY12/13, that would have amounted to $386 million from the General Fund.

* Provides about $6 million to get 2,000 low-income children currently on waiting lists into pre-school.

* Lowers property tax rates in 34 school districts to 27 mills ($27 per $1,000 of assessed valuation), allowing those districts to keep $12 million in the first year. This begins to address the wide gulf in school property tax rates across Colorado. In 1994, all districts paid the same rate. Today some districts' rates are more than 20 times those of other districts.