Schools are funded by a combination of local (property) and state revenues. The Gallagher Amendment formula has limited local revenues by cutting the residential assessment rate by two-thirds since its passage in 1982. From 1982 until 1992 districts could make up for the lower assessment rate by increasing their mill rate. In addition, the state had the flexibility to increase state spending to make up for losses in the local property tax contribution. But with the passage of TABOR in 1992, a combination of budget formulas made it increasingly difficult to fund schools: TABOR’s revenue limits automatically cut mill rates in districts across Colorado at the same time TABOR limited the state’s ability to prop up school funding with state dollars. As a result, total per pupil funding didn’t even keep up with the Consumer Price Index during the 1990s – even though Colorado’s economy was booming. Note that the combination of Gallagher and TABOR has shifted the burden of school funding from local property taxes to the State General Fund. Thus, the State’s General Fund provides more than 60% of school funding whereas it used to be less than 40%. This explains the dramatic increase in the portion of the General Fund now spent on schools.