Mar 26

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

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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

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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

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Low state revenues may mean no TABOR refunds next year

2016_Legislature_LOGOS

By Charles Ashby
Saturday, March 19, 2016

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

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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

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By: Megan Schrader

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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Mar 13

“No One Owes You Anything”

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Harry Browne, an American author and businessman, first wrote this in 1966. It’s a letter dedicated to his daughter, then nine years old. Take a look — we guarantee you’ll learn a lot.

’…It’s Christmas and I have the usual problem of deciding what to give you. I know you might enjoy many things — books, games, clothes.

But I’m very selfish. I want to give you something that will stay with you for more than a few months or years. I want to give you a gift that might remind you of me every Christmas.

If I could give you just one thing, I’d want it to be a simple truth that took me many years to learn. If you learn it now, it may enrich your life in hundreds of ways. And it may prevent you from facing many problems that have hurt people who have never learned it.

The truth is simply this:

No one owes you anything.

Significance

How could such a simple statement be important? It may not seem so, but understanding it can bless your entire life.

No one owes you anything. Continue reading →