Category Archives: Fiscal Policy

Jun 19

Colorado taxpayers possibly headed for both TABOR refund and tax cut

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Colorado taxpayers possibly headed for both TABOR refund and tax cut

  • Anna Staver
  • PUBLISHED:  | UPDATED: 

Coloradans are inching closer to their first TABOR tax refunds in years, according to updated state revenue forecasts released Wednesday.

In fact, state collections have been so strong that taxpayers are likely to get both a sales tax refund and a state income tax cut, according to Kate Watkins, the chief economist for Colorado’s Legislative Council.

She and her team estimate TABOR will drop the state’s income tax rate from 4.63 percent to 4.5 percent for both 2019 and 2020. For someone who makes $50,000 a year that’s a savings of $65. The sales tax refund amount is based on a complicated formula, but it ranged from $13 to $41 when the state last gave them out, in 2015.

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Jun 19

PERA obligations still threaten Colorado’s future

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PERA obligations still threaten Colorado’s future

Colorado is ranked one of the worst states in the US regarding the ability to pay state pensions. In October 2018, Bloomberg’s Danielle Moran tallied the total liabilities and the funded portion that applies to each state’s public employee pension funds, finding that five states had funded less than 50% of the cost needed to pay for their promised state public employee’s pension benefits: Kentucky (33.9%) New Jersey (35.8%) Illinois (38.4%) Connecticut (43.8%) and Colorado was the fifth-worst in the US (47.1%). The exorbitant real debt of PERA obligations is over twice the size of the entire state budget ($32 billion) when using a discount rate that the private sector has to use in calculating its debt obligations.

According to the Foundation of Economic Education, another way to measure the shortfall is to calculate the amount of money that each individual state resident would have to cough up to fully fund the cost of providing state government employees with the retirement benefits promised to them by state politicians. This analysis shows that the 2018 cost of unfunded state government employee pension liabilities per Colorado resident (man, woman, and child) is $9,722 the fifth-highest in the US.

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Jun 18

TABOR Committee responds to Court ruling on TABOR repeal

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TABOR Committee responds to Court ruling on TABOR repeal

 

Colorado’s Constitution contains a provision which requires that all matters proposed by ballot initiatives can address only one subject.  Yesterday, the Colorado Supreme Court allowed a ballot measure to proceed that would wipe out the Taxpayer’s Bill of Rights in its entirety.  The Court explicitly threw out a quarter-century of precedent.

The TABOR Committee adamantly condemns the Court’s determination.

“The Court has become dangerously unmoored from the clear meaning of the state constitution,” protested Penn Pfiffner, the Committee’s chairman.  The TABOR Committee points out that the Taxpayer’s Bill of Rights includes not only the frequently-debated provisions for slowing the growth of government, but also for example

  • election provisions that call for, among other things, notification of the citizens by any Colorado government of any election,
  • requirements for emergency reserves at all levels of government
  • a state-wide prohibition on real estate transfer taxes ,
  • rules for property tax assessments
  • rights of local districts to resist state-imposed mandates.

Committee Board director Rebecca Sopkin observed, “It is strange that the Court found all of this to be one subject. The Court held that all of the above provisions and rights are ‘necessarily and properly connected,’ as though no one of them could exist without the others. We find that to be preposterous.”

In a scathing dissent, Justice Marquez pointed out that using the Court’s logic, a single measure could repeal the entire Colorado Bill of Rights.  Petitioners could simply substitute the Bill of Rights[1] for the Taxpayer’s Bill of Rights[2].

 

The TABOR Committee finds it unsettling that the Colorado Supreme Court appears to take sides.  It specifically addresses[3] what seems to be at the heart of issue – that it would be difficult and expensive to repeal the Taxpayer’s Bill of Rights in a “piecemeal” manner.  Does the Court step into the political arena in an attempt to collaborate and cooperate with TABOR opponents? The Court should be impartial rather than act to relieve TABOR opponents of “expense and difficulty.”

 

The single subject issue arose as a ballot initiative in 1994. TABOR was very much part of the debate. The official summary (Blue Book) specifically noted that if the Single Subject Rule were to be passed, then it would not be possible to repeal TABOR in a single vote.  Instead, it would be necessary to address its provisions one at a time.  Citizens passed the measure.  The Court ignored the will of the people, history, established law, and common sense in its Opinion.

[1] Colorado Constitution Article 2

[2] Colorado constitution Article 10, Section 20

[3] Opinion, page 12

Jun 13

Group forms to fight anti-TABOR ballot question

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Group forms to fight anti-TABOR ballot question

061219-cp-web-tabor.png
Members of No on CC, including, from left, Colorado House Republican leader Patrick Neville, Colorado Regent At-Large Heidi Ganahl, 18th Judicial District Attorney George Brauchler and U.S. Rep. Ken Buck.

(Courtesy, Associated Press, and Gazette/Colorado Politics file photos)

A group made up of some of the Colorado Republican Party’s biggest names has formed to fight Proposition CC on the November ballot. The measure would allow the state to keep future refunds allowed by the Taxpayer’s Bill of Rights to go for schools and transportation.

The group, called No on CC, includes former Gov. Bill Owens, former U.S. Sen. Hank Brown, U.S. Rep. Ken Buck and Colorado House Republican leader Patrick Neville.

The leadership is strong and well-known in GOP circles, as well. The co-chairs are University of Colorado Regent At-Large Heidi Ganahl, 18th Judicial District Attorney George Brauchler, and former state treasurers Walker Stapleton and Mark Hillman.

Tampering with TABOR is expected to be a partisan brawl, since Republicans contend it keeps taxes and the size of government in check. They point to Colorado’s booming economy as proof balancing taxes and government works.

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May 24

Colorado groups cry foul over misleading information about TABOR

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Colorado groups cry foul over misleading information about TABOR

  • By Bethany Blankley | The Center Square
FILE - Colorado State Capitol
The Colorado State Capitol in Denver, Colorado.

Shutterstock photo

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Voters will decide on Nov. 3 whether the state can keep excess revenues instead of refunding them to the taxpayer, and prevent voters from deciding on the matter in the future.

The legislatively referred state statute passed by a majority Democratic legislature and has the support of Democratic Gov. Jared Polis.

Among other things, the Taxpayer’s Bill of Rights (TABOR) requires the state to refund excess revenue to taxpayers.

The lead sponsor of the amendment, Democratic Rep. K.C. Becker, says that Colorado’s strong economy gives the impression that “the state itself can make more investments, more improvements,” without raising taxes. But, she says, “We can’t because the state constitution prohibits the budget from growing with the economy.”

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This article originally ran on thecentersquare.com.

May 20

Colorado voters to decide whether to dilute Taxpayer Bill of Rights

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The Center Square analysis

Colorado voters to decide whether to dilute Taxpayer Bill of Rights

Bills that passed during the legislative session would permanently end TABOR-granted tax refunds if voters give their approval

FILE - Voting booth polling place election
Allen J.M. Smith | Shutterstock.com

Colorado Democrats were successful in passing legislation this session that could chip away at the Taxpayer’s Bill of Rights (TABOR) if voters give the majority party what they want.

TABOR is a constitutional amendment that requires voters to approve all tax increases. In addition to being a check on tax and spending increases, TABOR requires voter approval of debt increases. The amendment also ensures taxpayers receive refunds when the government’s revenue increases faster than population growth plus inflation.

It’s also one of the most contentious and partisan issues at the Colorado capitol.

TABOR means that anytime legislators want to raise taxes, they have to seek voter approval at the ballot box. But referendums become expensive and require significant political capital, especially given Coloradans’ recent history of voting down tax increase proposals.

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May 18

Sharf: The revolt of Colorado’s political elites

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Sharf: The revolt of Colorado’s political elites

Laws outlining government powers frequently come with restrictions. (See the U.S. Constitution for an excellent example.) Sometimes, the laws are restrictions, and they include exceptions. And sometimes, people vote down expansions or loosening of those restrictions.

Described by one side as guardrails and the other as a straitjacket, such restrictions very quickly morph into obstacles to be overcome or, in extremis, ignored. That such arrogance is profoundly disrespectful to the people of Colorado hasn’t kept it from being the default position of far too many elected officials.

Examples are legion. In 2018, voters rejected a proposal for a half-mile setback for new oil and gas wells by a 10-point margin. Nevertheless, the current legislature has passed and the governor signed Senate Bill 19-181. That law would allow local governments to ban all new wells, and the state is drafting regulations permitting exactly the setback that voters decisively rejected. Continue reading →