Gov. John Hickenlooper pitched a fix Thursday to what some call Colorado’s “fiscal thicket,” a complex network of Constitutional Amendments – most notably the Taxpayer’s Bill of Rights – and state laws that dictate how state government spends taxpayer dollars.
The plan – spelled out in a four-page letter to Democrat and Republican leaders in the General Assembly – hinges on the state keeping an estimated $316.6 million in fiscal year 2016-17 instead of paying it back to taxpayers through a TABOR refund.
That money would instead go to (and yes, this adds up to more than $316.6 million): $215 million for transportation projects, $50 million for common education; $20 million to repay local governments for the impact of oil and gas operations; and $75 million to pay back money borrowed from the Medicaid expansion and increased hospital provider fees.
Under the plan, lower income taxpayers could have their cake and eat it, too. They would receive a share of $85 million in a new state Earned Income Tax Credit.
Henry Sobanet, director of the Governor’s Office of State Planning and Budgeting, said there is enough time remaining this session to address an important question for future budgets.
“Are we sure that the structure we have is providing the resources that all the aspects of the state’s priorities need?” Sobanet asked. “This idea, these conversations have been kind of back and forth for many months, and so we felt it was a good time to try and see if there was some common ground around a vision for transportation, a vision for rebates, a vision for some extra resources for K-12 education.”
Under the plan, voters wouldn’t be asked for permission for the state to keep the increased revenue, a key tenet of TABOR. Continue reading