Category Archives: Colorado Legislature

Aug 30

Candidates traveled different paths to Treasurer’s office race

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Candidates traveled different paths to Treasurer’s office race

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As a member of the Joint Budget Committee for the past four years, retired math teacher and term-limited State Representative Dave Young has had a front row seat to how every department of the state functions.

As a self-made entrepreneur and CEO of an investment firm, Brian Watson has spent most of his career managing other people’s money.

Despite two very different paths to the Colorado Treasurer’s office, both men believe they have the skills necessary to do the job.

As different as their experience is, what they’ll do when they get there is equally different, in everything from the role the Treasurer should play on the Public Employees Retirement Association (PERA) board, state policy formation, and the Taxpayer’s Bill of Rights (TABOR).

“The Treasurer sits on several boards, the big one being the PERA board,” said Young, the Democrat nominee. “Having sat on the joint budget committee, I see the financial crisis the state is in. We a have a deep hole in every aspect of our budget, and it’s because we have the most restrictive tax and expenditure provision in our constitution of any state in the union. The collision of TABOR and Gallagher — they are working against us.”

The Gallagher Amendment is a provision in the Colorado Constitution passed by voters in 1982 that made major changes to property tax assessments in Colorado, including lowering the tax burden immediately on certain types of property and exempting certain property (such as household furnishings, non-business personal items, business inventory, livestock, and farm or ranch equipment, to name a few). Most importantly, perhaps, is Gallagher limits how fast the assessed value can grow on residences. Because residential property value has grown much faster than commercial property, residential assessment rates have dropped from 21 percent in 1982 to 7.20 percent today.  Over the same time period, however, inflation adjusted property tax revenues have risen from $1.35 billion in 1982 to nearly $9 billion in 2017.

TABOR is another amendment to the Colorado Constitution. It was passed by voters in 1992. It limits the growth of government to the annual inflation rate and population change. It requires government entities to take all new debt and tax increases to voters.

“I will use my business experience to help the legislature be a positive force in addressing the budget issues the state has,” said the Republican nominee Watson about working under Gallagher/TABOR restrictions. “I will meet with them as well and work with them.  I think the people of Colorado have made clear their priorities.”

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Aug 15

IN RESPONSE | We don’t need a tax hike to fix Colorado’s highways

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In this Jan. 7 photo, traffic backs up on Interstate 70 in Colorado, a familiar scene on the main highway connecting Denver to the mountains. (AP Photo/Thomas Peipert)

(Re: “Only one ballot issue can tackle Colorado’s transportation challenges,” Aug. 10.)

Let’s fix our roads without a massive 21 percent increase of our state sales tax. The collaborative cronyists’ proposal, “Let’s Go Colorado” — a huge tax increase, allegedly for transportation — hurts everyday, hardworking Coloradans who are chasing their American dream.  If the politicians, bureaucrats, governmental appointees and interested parties behind the proposal, get their way, we’ll pay an additional 21 percent in state sales tax on basic items that make our lives better such as diapers, toilet paper and school supplies.

When enjoying a craft brew with colleagues, buying a good book or meeting friends for dinner, we would pay an additional 21 percent in state sales tax.  And those new school clothes, soccer balls, books and dance shoes for the kids?  You got it!  An additional 21 percent in state sales tax.  If passed, Colorado would be the 13th-highest state in the country for taxes at the register.

Politicians, bureaucrats, governmental appointees and interested parties are selling this new tax as only cents on the dollar.  Here’s the reality: Currently, Colorado state sales tax sits at 2.9 percent.  Let’s Go Colorado would increase the state sales tax to 3.52 percent, which is a significant 21 percent increase.  And it’s a regressive tax that disproportionately hurts people in the toughest situations and who trying to get ahead, such as the poor, vulnerable, elderly and our young people.

There is a better way to get Colorado going. “Fix Our Damn Roads” is a ballot initiative that directs the state legislature to dedicate a portion of Colorado’s growing revenue to fix our roads and bridges, without increasing taxes. Colorado has the money.  Our revenue continues to increase.  Colorado is expected to collect an additional $1.29 billion next fiscal year, thanks to federal tax cuts, economic growth and a resurgent oil and gas industry.  Colorado has the money.

Gas taxes were created as a user tax.  The tax was charged at the pump and the tax revenue was to be used for our roads and bridges.  However, the state has been spending our gas tax money on pet projects and other stuff.  Per an Institute of Energy Research report, 16 percent of federal gas tax money is siphoned off for non-road and bridge projects such as transit, pedestrian and bicycle paths and facilities, recreation trails, landscaping, environmental mitigation and transportation museums.  If the money would have gone to where it was promised and purposed, our roads and bridges would be in good condition and repair.

Let’s compare the two competing transportation ballot questions for this November.  Fix Our Damn Roads:  (1) Fixes our roads and bridges without a tax increase; (2) designates exactly where the money will be spent; (3) names the projects (From CDOT’S Tier One list) in the ballot measure; (4) honors the will of the people and TABOR, the Taxpayer’s Bill of Rights; (5) does not include carve-outs for special interests, and (6) bonds for $3.5 billion with a repayment cost, including interest, of $5.2 billion to fix our roads and bridges.

Let’s Go Colorado: (1) Proposes a massive 21 percent state sales tax increase; (2) provides a goody bag of money for politicians, bureaucrats, lobbyists and interested parties to spend on pet projects; (3) lacks transparency and accountability to everyday, hardworking Coloradans, i.e. there are no specific projects named in the ballot measure; (4) includes language that money collected above the TABOR limits is not returned to the people; (5) includes an exemption for aviation and jet fuels, and (6) bonds for $6 billion with a repayment cost, including interest, of $9.4 billion.  Fix Our Damn Roads saves hardworking Coloradans at least $4.2 billion.

We all agree that our roads and bridges could use a little love.  Together, we can do this.  It’s time to Fix Our Damn Roads and let’s do it without a massive tax increase!

Kim Monson
Lone Tree

The author is a former city councilwoman for Lone Tree and co-hosts the “Americhicks — Molly Vogt & Kim Monson” radio show on KLZ 560 AM and the “WWII Project” on KEZW 1430.  

 

http://coloradopolitics.com/in-response-we-dont-need-a-tax-hike-to-fix-colorados-highways/

Aug 09

Sales tax hike for transportation a regressive, unstable funding scheme

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In November, Coloradans will likely be voting on a scheme to raise the state sales tax to support state and local transportation projects.

Photo and copyright: Tony’s Takes – used by permission

Unfortunately, raising sales taxes would hit all the wrong people, and provide a particularly unstable revenue stream to fund this infrastructure.

It’s no secret that Colorado’s roads and bridges are a mess.  They have failed to keep pace with the state’s growth, even as maintenance has fallen behind.

You either end your weekend trip to the mountains on Sunday morning or you pack a picnic lunch for the parking lot home.  Daily commutes on I-25 come to a standstill between Colorado Springs and Castle Rock.  And driving around Denver means a permanent sinking fund for front-end alignments.

We’re in this state of affairs because the Colorado legislature has consistently failed to spend money on roads and bridges instead of other pet projects.  This year, the legislature passed Senate Bill 1 in an attempt to address the problem, but almost everyone agrees that the paltry spending past the first two years is an inadequate solution.

In response, the Metro Denver Chamber of Commerce and the Colorado Contractors Association have proposed raising the state sales tax from 2.90 percent to 3.52 percent, and authorizing up to $6 billion in bonds.  The additional revenue would be divided among state highways, local governments, and multi-modal (transit) projects. Continue reading →

Aug 06

Legal battles continue over Taxpayer Bill of Rights, hospital fees, transportation taxes

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egal battles continue over Taxpayer Bill of Rights, hospital fees, transportation taxes

FILE - Colorado State Capitol
The Colorado State Capitol in Denver, Colorado.

Shutterstock photo

On Nov. 3, 1992, Colorado voters approved a constitutional amendment which stipulates that lawmakers seeking to raise taxes or issue debt must first ask voters for permission.

Called the Taxpayer Bill of Rights, or TABOR, it took effect Dec. 31, 1992, and was designed to serve as another check against the growth of government. It requires that any increase in overall revenue from taxes not exceed the rates of inflation and population growth.

The TABOR Foundation, which was instrumental in advancing the amendment, maintains that it has been a successful measure.

Others maintain it interferes with advancing critical public spending initiatives. Sam Mamet, the executive director of the Colorado Municipal League, opposes TABOR. Mamet argued on the 25th anniversary of TABOR that “iIt is one of the most seriously damaging things the voters of the state have done to themselves in the last 25 years, in my humble opinion.”

Since its inception 26 years ago, many attempts have been made to amend, circumvent and litigate TABOR; the foundation counts at least 80 cases between 1993 and 2017.

Pfiffner said a perfect example of this is the 2015 lawsuit it filed, TABOR Foundation, et al. v. Colorado Department of Health Care Policy & Financing, et al. regarding Colorado’s “hospital provider fee,” which it argues is an unconstitutional tax.

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Jul 31

Colorado expected to see $1 billion in new revenue in 2019; will taxpayers get a rebate?

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FILE - Colorado State Capitol
The Colorado State Capitol in Denver, Colorado.

Shutterstock photo

The Economic and Revenue Forecast presented to the Joint Budget Committee in June showed that the state’s general fund is projected to close out fiscal 2018 with a $1.2 billion surplus.

Since Colorado’s Taxpayer’s Bill of Rights (TABOR) places a cap on annual state tax revenue the state can keep, spend or save, many wonder whether Coloradans will actually see tax refunds in 2020.

 

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Jul 25

This is why repair projects in Colorado are stuck waiting for funding

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This is why repair projects in Colorado are stuck waiting for funding

Despite 90-degree temperatures, you could feel the chill in the air as state lawmakers on both sides of the aisle got together to figure out funding for state improvement projects. The number one question from Democrats: Why wasn’t State Treasurer Walker Stapleton there?
Author: Marshall Zelinger
Published: 10:53 AM MDT July 24, 2018

The state Capitol has no air conditioning, yet there was a chilly feel during a Monday morning committee hearing on the funding of state improvement projects.

The Capital Development Committee met with the Deputy Treasurer to find out why funding isn’t in place yet for projects identified as a result of a bill signed into law in 2017.

Democrats on the committee requested that treasurer Walker Stapleton show up to answer questions.

“Why is the state treasurer not here? What does he have going on that is more important than this transaction?” asked State Rep. Chris Hansen, D-Denver.

“Since I’m the one with the details and I’m the one that’s been working on this, I’m the one that volunteered to be here today,” said Deputy Treasurer Ryan Parsell.

“I, for one, am not disappointed that the treasurer is not here. I’m glad that you are here,” said State Sen. John Cooke, R-Greeley.

Stapleton is running for governor against Congressman Jared Polis.

“What I’m hoping we’re not doing here is making this a political football for no apparent reason,” said Rep. Jon Becker, R-Fort Morgan.

To understand the concern with the treasurer’s office and decisions being made, you need to understand the law that created the funding mechanism for the state improvement projects.

In 2017, lawmakers passed SB 267, which removed the Hospital Provider Fee from the state’s general fund and created its own enterprise that does not count against the state’s TABOR limit. The Taxpayer Bill of Rights, which is in the state’s constitution, limits how much government can grow each year and requires the state to refund taxpayer money if it collects too much. Taking the Hospital Provider Fee out of the equation allowed the state to keep more money before hitting the limit.

SB 267 authorized the state to issue certificates of participation (COPs) to fund about $2 billion dollars in road construction projects and pay for other state building improvement projects.

COPs essentially mean the state is selling buildings it owns to get immediate funding, and then they buy the buildings back through a lease-purchase agreement.

A lawsuit challenging the legality of the Hospital Provider Fee, thus the COPs, is going to be heard in Denver District Court in October.

The COPs need to be issued between July 1 and June 30, 2019.

During a political stop last week, Stapleton was asked about not having the COPs issued as of July 1. He was quoted in Westword as saying:

“My paramount concern as the treasurer of Colorado is to make sure we’re not issuing bonds when there is economic uncertainty. Anybody in the capital markets can tell you that from an investment standpoint, when you’re issuing bonds and those bonds are being impacted by pending litigation, which we had nothing to do with, it makes investors skittish. I’m not going to issue bonds when it could negatively impact the credit of Colorado based on hair around the deal resulting from the lawsuit. It would be fiscally irresponsible for me to do so.”

Last week, a spokeswoman for the treasurer’s office told Next with Kyle Clark that the delay was because the office received bad advice from bond counsel, and finally replaced the counsel with a firm that was willing to proceed.

“Bond counsel continued to express uneasiness and discomfort with the pending litigation but asks for more time to research the issue. After that point, discussions largely occurred directly with the Attorney General’s Office and Bond Counsel. During that time, the Attorney General’s office and Treasury began to question whether Bond Counsel’s initial response was correct,” Parsell testified on Monday morning. “It became increasingly clear that bond counsel was not approaching this case with an open mind. Bond counsel was basing their viewpoint off of a 30-year-old case at the expense of precedent that had been set in the interim years. The Attorney General’s Office asked bond counsel to review newer precedent. Bond counsel refused. The Attorney General’s Office also offered Bond Counsel the opportunity to review the state’s defense of the lawsuit. Bond Counsel refused. The Attorney General’s office offered to discuss alternative legal tactics that may give bond counsel comfort. Bond counsel refused.”

List of projects to be funded with 2018-19 COPs:

The treasurer’s office plans to start issuing the COPs on Sept. 26.

‘The legislation gives the treasurer’s office the authority to issue the COPs between July 1 of 2018 and June 30 of 2019. We will meet that deadline with ample time to spare,” said Parsell.

Hansen responded that no one was suggesting the treasurer’s office was breaking the law, just that it was delaying projects 90 days that could cost the state more money.

One of the projects also expecting funding from the issuance of COPs is the widening of Interstate 25 from Castle Rock to Monument.

“Based on the communication that we’ve received from CDOT, the timeline that we have will not interrupt any construction project timing,” said Parsell.

CDOT plans to start the project in November.

What was not answered at the committee hearing was if any of the projects will start later than expected because of the funding delay, or if any of the projects will cost more because of the funding delay.

“It is difficult to ascertain whether any projects were delayed from starting since every funding recipient is aware that funding is contingent on the timing of the COP issuance. The advice I offered was to expect funding in August,” said Kori Donaldson, Legislative Council staffer for the Capital Development Committee. “We don’t have any data about costs associated with the projects starting in October rather than August.”

http://www.9news.com/article/news/local/next/this-is-why-repair-projects-in-colorado-are-stuck-waiting-for-funding/73-577000240

Jul 25

Senate District 22 candidate Tony Sanchez says there is no doubt a vote for him is a vote for the Taxpayer’s Bill of Rights (TABOR).

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Senate District 22 Republican out-raising Democrat in year of race for control

July 24, 2018 By Sherrie Peif

LAKEWOOD — Republican Senate District 22 candidate Tony Sanchez says there is no doubt a vote for him is a vote for the Taxpayer’s Bill of Rights (TABOR).

Sanchez hopes to replace Andy Kerr, who is term limited, representing Ken Caryl, Lakewood and Edgewater. He firmly believes TABOR is the main reason Colorado weathered the recession the way it did.

“I was on the board of the Colorado Union of Taxpayers, so I am somebody who unequivocally supports TABOR,” said Sanchez, whose challenger Democrat Brittany Pettersen while she was representing House District 28 voted to raise taxes and increase dept under Senate Bill 17-267, which some labeled as the biggest betrayal of TABOR since the Constitutional Amendment was passed in 1992. “Some say it’s an impediment, but it’s the only thing that kept the prosperity of Colorado in place.”

Sanchez said the real problem with the state budget is accountability and the confidence voters have in their legislators.

“What kind of confidence do voters have to raise any taxes if they don’t know where their money is going?” he said. “We have to defend TABOR. It’s a good thing for our citizens to have that voice, to be the final judgment when it comes to that as opposed to their legislator.” Continue reading →

Jul 17

Bed tax law suit gets new life

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Bed tax law suit gets new life

DENVER — Ongoing litigation against the Colorado Department of Health Care Policy & Financing, among others, over a 2009 program that raised taxes via a “hospital provider fee,” has new energy after Cause of Action Institute announced earlier this month it would take on the representation of the plaintiffs in the case.

Cause of Action is a Washington D.C.-based 501(c)(3) organization that according to its website advocates for “economic freedom and individual opportunity advanced by honest, accountable, and limited government.”

Plaintiffs, who were originally represented by Mountain States Legal Foundation, had 60 days to find new counsel after Mountain States withdrew for reasons not related to the case or the plaintiffs.

Lee Steven and James Valvo are the lead attorneys. The Colorado-licensed attorney is Michael Francisco, who while working in the Colorado Attorney General’s office helped to write the defense of Colorado’s Taxpayer’s Bill of Rights (TABOR) in Kerr vs. Hickenlooper, which claimed TABOR was a violation of the U.S. Constitution’s guarantee of a republican form of government. That argument lost.

This case was initially filed in 2015. It asserts the state’s Hospital Provider Fee is actually a tax enacted in violation of the TABOR. Continue reading →

Jul 16

Protecting Taxpayers with Supermajority Requirements

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Protecting Taxpayers with Supermajority Requirements

Cartoon workingman reluctantly paying taxes. (Photo: AdobeStock/PPD/Adiano)

CARTOON WORKINGMAN RELUCTANTLY PAYING TAXES. (PHOTO: ADOBESTOCK/PPD/ADIANO)

The best budget rule in the United States is Colorado’s Taxpayer Bill of Rights. Known as TABOR, this provision in the state’s constitution says revenues can’t grow faster than population plus inflation. Any revenue greater than that amount must be returned to taxpayers.

Combined with the state’s requirement for a balanced budget, this means Colorado has a de facto spending cap (similar to what exists in Switzerland and Hong Kong).

The second-best budget rule is probably a requirement that tax increases can’t be imposed without a supermajority vote by the legislature.

The underlying theory is very simple. It won’t be easy for politicians to increase the burden of government spending if they can’t also raise taxes. Particularly since states generally have some form of rule requiring a balanced budget.

Basically a version of “Starve the Beast.”

Anyhow, according to the National Council of State Legislatures, 14 states have some type of supermajority requirements.

And more states are considering this reform.

Continue reading →

Jul 16

High Court decision could send internet sales taxes to Durango

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High Court decision could send internet sales taxes to Durango

New revenue would help, but not solve, city’s long-term budget deficit
By Mary Shinn City & health reporter

Sunday, July 15, 2018 7:30 PM
A U.S. Supreme Court decision on internet sales could bring the city of Durango additional sales tax revenue. But unanswered questions surround the new revenue.

JERRY McBRIDE/Durango Herald file

Continue reading →