Mar 30

Speaker: Talks on proposal to eliminate TABOR refunds at a stalemate

Speaker: Talks on proposal to eliminate TABOR refunds at a stalemate

Rep. Dickey Lee Hullinghorst of Boulder was nominated as majority leader during the Colorado House of Representatives Democratic Caucus at the state Capitol in Denver, CO, Thursday November 8, 2012. Democrats took back the majority in the House after Tuesday’s election, and will have a 37-28 majority when the session opens in January. Craig F. Walker, The Denver Post

DENVER – The speaker of the Colorado House said negotiations have reached a “stalemate” on a long-debated and highly anticipated proposal to retain more state revenue through an accounting change that would eliminate TABOR refunds in future years.

The prospects for the bills Speaker Dickey Lee Hullinghorst introduced Monday are poor in the Republican-dominated Senate.

One of the bills reauthorizes a fee charged on hospital stays so that millions of dollars go into an enterprise fund that is exempt from the spending limits in the Taxpayer’s Bill of Rights. The other bill spends the revenue the state would retain if the first bill passes.

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Mar 29

Hospital provider fee bill introduced in Colorado Legislature — with Republican Senate sponsor

Colorado House Speaker Dickey Lee Hullinghorst introduced her anticipated bill to turn the hospital provider fee into an enterprise fund Monday with two twists — a Republican sponsor in the Senate and a companion bill allocating general-fund money that would be freed up if the bill were to pass.

Created in 2009, the fee is assessed on hospitals for each night that a bed is filled with a patient, and the revenue is used to receive match funding from the federal government and to increase Medicaid eligibility for childless adults.

It has generated billions of dollars in reimbursements for hospitals that treated previously uninsured patients with no capacity to pay bills, but because the revenue counts against the state’s Taxpayer’s Bill of Rights (TABOR) revenue cap, it also pushes the state toward exceeding the cap and having to give taxpayers refunds with money that could otherwise have gone to areas such as education and transportation. Continue reading

Mar 26

Colorado’s provider ‘fee’: Even the federal government knows its a tax

March 25, 2016 12:22 PM· By Linda Gorman

In 2009, the Democrats controlling Colorado state government wanted more money. Among other things, they wanted to expand Medicaid. They needed to increase state revenues. Their problem was that the Colorado Constitution requires a vote on new state taxes and the U.S. was in the depths of a severe economic downturn.

icon_blog_noteState officials knew that a new tax would never be approved by a popular vote. To get around both the letter and the spirit of their constitutional duty, they simply labeled the provider tax a “fee” and imposed it. Fees do not require a vote.

Today that tax badly disguised as a fee is raising $688 million in additional revenues that is counted towards the total amount of tax revenue that the state is allowed to keep under the Colorado’s Taxpayer Bill of Rights (TABOR).

 

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Mar 25

Colorado budget bill eliminates TABOR refunds, slashes spending

Hospitals and road construction take a hit, but budget writers warn it could have been far worse

(Denver Post file)

Facing a money crunch, Colorado lawmakers resorted to extraordinary feats to craft a $27 billion budget bill Thursday, eliminating a $59 million taxpayer refund, slashing $73 million of payments to hospitals and cutting $50 million for road construction.

Even then, budget writers needed to pull millions from other cash accounts and tap reserves to balance the spending plan for the fiscal year that begins July 1.

But the moves prevented even deeper spending cuts to classrooms, college campuses and health care providers that Gov. John Hickenlooper proposed in his budget plan.

Click (HERE) to read the rest of the story:

 

Mar 20

Low state revenues may mean no TABOR refunds next year

Low state revenues may mean no TABOR refunds next year

2016_Legislature_LOGOS

DENVER — State revenues have dropped off a bit, enough that it could prevent an automatic refund under the Taxpayer’s Bill of Rights, state economists told lawmakers on Friday.

Projections for the next fiscal year are expected to be down by about $111 million, meaning the state likely won’t reach the revenue cap that automatically triggers a refund under TABOR as had been expected from the last forecast in December, the Colorado Legislature’s chief economist, Natalie Mullis, told members of the Joint Budget Committee.

“We did lower our expectations for general fund revenue,” Mullis said. “In December, we expected that general fund revenue would grow by 1.8 percent this year, which is actually negative if you adjust for population growth and inflation. It’s slowed down a little bit to 1.5 percent in this revenue forecast. That impacts the bottom line.”

In her forecast for the first quarter of 2016, Mullis said that the national and state economies expanded last year, but slowed somewhat in the second half of 2015. Continue reading

Mar 20

Lower Colorado budget forecast renews TABOR fight

Lower Colorado budget forecast renews TABOR fight

DENVER – The state will take in less money in 2016-17 than previously forecast by economists due in large part to the struggling global economy, but the roughly $90 million decrease in revenue, is a proverbial drop in Colorado’s $26 billion budget bucket.

Lawmakers will use the March forecast to set the fiscal year 2016-17 budget in the next week, but not much has changed from when the governor released his recommended budget in November. That is largely because lawmakers made mid-year adjustments to the 2015-16 budget to provide a budgeting cushion in case of a downturn.

Lawmakers on Friday received a forecast from Natalie Mullis, chief economist with the Legislative Council, and the governor’s budget office. This year the forecasts were extremely close.

“We did lower our expectations for general fund revenue,” Mullis said. “We already had expectations for slowed growth in revenue. In December we expected that general fund revenue would grow by 1.8 percent this year, which is actually negative if you adjust for population and inflation. It slowed down again a little bit, to 1.5 percent in this revenue forecast,”

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Mar 19

Colorado budget forecast renews TABOR fight

March 18, 2016

 photo - Colorado State Capitol Building
Colorado State Capitol Building 

DENVER – The state will take in less money in 2016-17 than previously forecast by economists due in large part to the struggling global economy, but the roughly $90 million decrease in revenue, is a proverbial drop in Colorado’s $26 billion budget bucket.

Lawmakers will use the March forecast to set the fiscal year 2016-17 budget in the next week, but not much has changed from when the governor released his recommended budget in November. That is largely because lawmakers made mid-year adjustments to the 2015-16 budget to provide a budgeting cushion in case of a downturn.

Lawmakers on Friday received a forecast from Natalie Mullis, chief economist with the Legislative Council, and the governor’s budget office. This year the forecasts were extremely close.

“We did lower our expectations for general fund revenue,” Mullis said. “We already had expectations for slowed growth in revenue. In December we expected that general fund revenue would grow by 1.8 percent this year, which is actually negative if you adjust for population and inflation. It slowed down again a little bit, to 1.5 percent in this revenue forecast,”

In addition to the slowed economy, the budget will face pressure from an estimated $59.3 million that must be refunded to Colorado taxpayers because of revenue limits put in place by the Taxpayer’s Bill of Rights. That tax return – what people would claim on their April 2017 income tax returns – is down from previous projections because revenue is lower.

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