Michael Fields of Americans For Prosperity vs HD-31 Joe Salazar (running for Colorado Attorney General)
Sep
18
Category Archives: Colorado Legislature
Sep
13
Colorado lawmakers turn to ‘fees’ to avoid Taxpayer Bill of Rights limits
By Michael Carroll / September 11, 2017
Colorado state lawmakers increasingly engage in fiscal gymnastics to get around provisions of the state’s landmark Taxpayer Bill of Rights (TABOR), according to both supporters and critics of the state’s 25-year-old constitutional amendment.
Approved by voters in 1992, the TABOR amendment mandates that state and local governments get voter approval for specified tax increases, and it limits the rate of government spending growth based on population increases and inflation.
Though a subsequent voter-approved measure eased the spending cap, critics like Jon Caldara, president of the Denver-based Independence Institute, say the legislature has turned to “dark money,” such as newly designated “fees” that don’t require votes of the people, to avoid TABOR’s restrictions. Colorado courts have tended to uphold those TABOR workarounds.
In a blog post, Caldara pointed to efforts to create a hospital provider fee as one of the ways lawmakers evade the spirit of the amendment and avoid difficult budget decisions. The bill exempting the hospital fee from the TABOR spending cap was signed by Gov. John Hickenlooper in May.
Caldara credits TABOR with helping the state avoid economic pain. When the nation went into a recession in 2002, other states saw huge drops in revenues that caused massive budget shortfalls, but that didn’t happen in Colorado, he said.
Other observers, however, say TABOR has made Colorado nearly impossible to govern.
“From my perspective, it’s an unmitigated disaster,” Colorado State University political science professor John Straayer told Watchdog.org. “It’s stripped the legislature of its fiscal authority.” Continue reading
Aug
10
TABOR Committee featured at national ALEC conference in Denver
TABOR Committee featured at national ALEC conference in Denver
Colorado’s Taxpayer’s Bill of Rights (TABOR) was in demand at the 44th Annual American Legislative Exchange Council (ALEC) meeting held at the Hyatt Convention Center in Denver at the end of July. The TABOR Committee board of directors and friends presented the case (in a three hour workshop session) showing other states how to adopt measures similar to TABOR. TABOR Committee Chairman Penn Pfiffner also addressed approximately 60 legislators and staff at a special session on July 28th concerning the importance of TABOR-like efforts in their own states.
TABOR is a Colorado constitution protection (approved by the voters of Colorado in 1992) that restrains tax increases to not greater than the sum of population growth and the rate of inflation without a vote of the people. It is the gold standard for all 50 states regarding sound fiscal responsibility. It protects the citizen’s right to be heard on tax increases that otherwise would not be subject to voter approval. It was because of TABOR that Colorado voters had the opportunity to recently reject two very large tax increases in Colorado. Amendment 66, a $1 billion tax increase proposal in 2013, and Amendment 69, a $25 billion tax increase proposal in 2016, were both soundly defeated at the ballot box by more than 60% of Colorado voters. TABOR made those votes possible.
The American Legislative Exchange Council is a nonprofit organization of conservative state legislators and private sector representatives who draft and share model state-level legislation for distribution among state governments in the United States. ALEC provides a forum for state legislators and private sector members to collaborate on model bills—draft legislation that members may customize and introduce for debate in their own state legislatures. The ALEC annual meeting included keynote presentations by former US Speaker Newt Gingrich, Education Secretary Betsy DeVos, Colorado Congressman Ken Buck, Kentucky Governor Matthew Bevin, and other national leaders.
Please visit www.thetaborfoundation.org to learn more about TABOR and how you can help protect Colorado voter’s right to be heard.
Aug
07
Colorado Court Grants Taxpayers’ Motion as to Healthcare Tax
FOR IMMEDIATE RELEASE
Colorado Court Grants Taxpayers’ Motion as to Healthcare Tax
July 27, 2017 – DENVER, CO. A Colorado group that defends the rights of taxpayers today celebrated the ruling by a Denver District Court accepting its amended and supplemental complaint against Colorado agencies and their officials for violating the Colorado Constitution’s Taxpayer’s Bill of Rights (TABOR).
The TABOR Foundation filed its motion on June 30, 2017. Two years earlier, on June 26, 2015, the TABOR Foundation filed its initial lawsuit charging its members should have been allowed to vote on whether a “hospital provider fee” may be imposed on Colorado hospitals; since 2009 Colorado’s Department of Health Care Policy and Financing has collected tens of millions and perhaps even a hundred million dollars.
Federal law lets States impose healthcare assessments to pay for Medicaid services, but the regulations provide for “taxes” and not “fees” as Colorado calls them to avoid TABOR. Although the 2009 act says the funds will be kept separate from the general fund, in fiscal years 2010, 2011, 2012, and 2013 some of the tax proceeds were put in the general fund.
The TABOR Foundation sought an end to the tax and refund of revenues collected, with interest, as required by TABOR. As of October 16, 2015, a motion by the Colorado defendants to dismiss the lawsuit had been briefed fully. On May 30, 2017, however, Governor Hickenlooper signed into law S.B. 17-267, which created the Colorado Healthcare Affordability and Sustainability Enterprise to administer the Hospital Provider Charge beginning on July 1, 2017. All of the TABOR Foundation’s 2015 claims remain virtually identical, except for the new challenge to creation of the “Enterprise.”
Jul
15
Progressive commissioner group seeks to “untangle TABOR” & redirect Senate Bill 267 money
DENVER – Transportation funding in Senate Bill 17-267, that was billed as the “Sustainability of Rural Colorado” Act, may in fact filter to more-populated areas if a newly-formed association made up of like-minded county commissioners has anything to say about it.
SB 267 was rushed through with more than 70 pages of strike below in the waning moments of the 2017 legislative session. It was billed as the “Grand Deal” by its supporters and the “Grand Betrayal” by its detractors.
There is no doubt it was controversial throughout the process because it involved reclassifying the Hospital Provider Fee from a Taxpayer’s Bill of Rights (TABOR) governed account to an enterprise, non-TABOR restricted account. It also put into use Certificates of Participation (COPs), which some believe are an end around TABOR. Some also believed it violated Colorado’s single-subject law for new legislation.
Since it was signed into law and took effect July 1, Complete Colorado broke the news that a drafting error would cost special taxing districts such as the Regional Transportation District (RTD) and the Scientific and Cultural Facilities District (SCFD), which funds the Denver Zoo and the Denver Museum of Nature and Science, millions in revenue.
Complete Colorado has also learned that an organized group of county commissioners called Counties and Communities Acting Together (CCAT) see the new law as a stepping stone to further weaken TABOR.
Jul
01
Healthcare “Enterprise” is Unconstitutional, says Taxpayer Group
| FOR IMMEDIATE RELEASE
Contact: William Perry Pendley, 303/292-2021, Ext. 30 Healthcare “Enterprise” is Unconstitutional, says Taxpayer Group June 30, 2017 – DENVER, CO. A Colorado group that defends the rights of taxpayers today filed a motion to amend and supplement its complaint against two Colorado entities and their officials for violation of the Colorado Constitution’s Taxpayer’s Bill of Rights (TABOR). On June 26, 2015, the TABOR Foundation alleges in Denver County Court that its members should have been allowed to vote on whether a “hospital provider fee” could be imposed on Colorado hospitals, which since its enactment in 2009, allowed Colorado’s Department of Health Care Policy and Financing to collect tens of millions and perhaps even a hundred million dollars. Although federal law lets States impose healthcare assessments to pay for Medicaid services, the regulations provide for “taxes” and not “fees” as Colorado calls them to avoid TABOR. Also, although the 2009 act provided that the funds collected would be kept separate from the general fund, in fiscal years 2010, 2011, 2012, and 2013 some of the tax proceeds were put in the general fund. The Foundation sought declaratory and injunctive relief and refund of revenues collected, with the payment of interest, as required by TABOR. As of October 16, 2015, a motion by the Colorado defendants to dismiss the lawsuit had been briefed fully. On May 30, 2017, Governor Hickenlooper signed into law S.B. 17-267, which created the Colorado Healthcare Affordability and Sustainability Enterprise to administer the Hospital Provider Charge beginning on July 1, 2017; however, except for the insertion of the Enterprise in this purportedly unconstitutional endeavor, all of the Foundation’s 2015 claims for relief remain virtually identical. |
Jun
24
Guest editorial: Provider fee bait and switch evades TABOR
June 22, 2017 9:58 AM· By Brian Vande Krol
Little ole Colorado, you’ve done well for yourself. You were a collection of cow towns when I first moved here in 1988. It was said that yogurt was the only culture in Colorado, and cowboys don’t eat yogurt.
Colorado is wealthy. Not DC wealthy, but quite a step up from the late 80’s. We rank 11th for median household income, have the 10th lowest unemployment rate, and the 14th lowest poverty rate. We have the Denver Performing Arts Center, and a growing system of subsidized trains. Colorado is also healthy, ranking 10th.
One reason we have done well is our restrained state government. With our balanced budget requirement and the Taxpayer’s Bill of Rights (TABOR), government has a tough time taking more of our money. That means greater economic growth.
But 70% of our state’s roads and bridges are in poor or mediocre condition, and getting worse. And, despite all that wealth and health, 1 in 4 Coloradans depend on the government for healthcare (Medicaid). The legislature wants more of your money, and is willing to close down hospitals to keep it.
The most cynical move of all
The legislature argued for several years about the Hospital Provider Fee, an $800 million program, claiming it is solely responsible for exceeding TABOR revenue limits, a situation that would require refunds to taxpayers. (Yes, it’s actually a tax. They just call it a fee so they don’t have to ask per
mission to take the money.) But every revenue source is equally to blame for exceeding the limit. To appease their insatiable appetite for more revenue, the legislature moved the program out of the general fund so it is not subject to the revenue limits. This is a crafty, deceptive scheme to avoid asking permission from voters to take more money, and to avoid refunding excess collections. They threatened to close rural hospitals if they didn’t get their way.
TABOR requires a change to the revenue limit if a program’s costs are moved off the books. It also requires TABOR to be interpreted to “reasonably restrain most the growth of government.” Instead of lowering the limit by $800 million, it was lowered only $200 million, resulting in a permanent $600 million per year tax increase. (The $800 million will still be spent, but outside of the budget, leaving more room in the budget, and more taxpayer dollars to be taken and spent.) Senate President Kevin Grantham (R, Canon City) believes that as long as there is a change, he has met the constitutional requirement. Continue reading
May
21
Cut Spending NOW!
May
21
Response To Governor’s Office Tweet About Colorado’s Economy
Michael Fields?
Boom! TABOR: It’s Working
DJ Friednash?
Colorado has the best economy and lowest unemployment rate in the nation at 2.3%.
@MichaelCLFields (Sr. Director of Issue Education for Americans For Prosperity Foundation)
@DJFriednash (Chief of Staff to Governor John Hickenlooper)
May
11
Legislature dismantles Colorado Energy Office, passes major spending bill on final day
“But the biggest agreement of the day came on SB 267, a bill that attempts to meet several of the most crucial needs in Colorado — increased road funding, stabilized funding for rural hospitals, a boost in funding for rural schools — as it also allows for more spending room in future budgets.
Several House Republicans blasted the bill, which largely was crafted by Republican Sen. Jerry Sonnenberg of Sterling. They said it violated the Taxpayer’s Bills of Rights by not reducing the TABOR spending cap by as much as the cost of the roughly $800 million hospital provider fee program that it took out from under the cap and made into an enterprise.
Rep. Tim Leonard, R-Evergreen, said it also violated the legislative requirement to limit all bills to a single subject, even as it seemed to try to fill the needs of many sectors to grow their government funding.
“We work for the people,” Leonard told House members. “We do not work for the recipients of government money waiting for the trough to fill up with taxpayer money.”
But a number of other Republicans, who largely represent rural areas or are considered more moderate members of their caucus, said they backed the measure because the spending recipients needed the boost. They echoed arguments from the Colorado Hospital Association that between six and 12 rural hospitals could close if they lost the money originally projected to be taken from them in order to balance the budget next year.
And several blasted conservative organizations who have criticized them for going along with the plan, saying they are out of touch with constituents’ needs and are making the Legislature a place that is run by fear.
“I know by the time I get back to my desk, the Facebook posts will start. We’ve heard them already: ‘Squish, RINO,’” said Rep. Lois Landgraf, R-Fountain, referring to the acronym some groups give to elected officials they consider to be Republican In Name Only.
“What’s not OK is that by the time I walk out of here, I will have earned myself a primary. But I am happy to be a ‘yes’ vote.”“
Over the course of a turbulent 13-hour final day of the 2017 session Wednesday, the Colorado Legislature passed one the most wide-ranging omnibus spending bills in recent memory and then killed off the vast majority of functions of the Colorado Energy Office.
The 120th day of the first session of the 71st General Assembly began with broad bipartisan support over Senate Bill 267, a measure that saves Colorado hospitals from $528 million in funding cuts, dedicates $1.88 billion to highway projects, pares Medicaid spending and offers a personal property tax credit to businesses for their first $18,000 worth of business equipment.
– LEGISLATURE’S LAST DAY: Click above for Kathleen Lavine’s look at the session’s conclusion.
Despite protests from some Republicans that some of its spending maneuvers were unconstitutional, nearly half of the caucus joined with House Democrats in passing the bill by a 49-16 margin and sending it onto Gov. John Hickenlooper.
But that was about the only kumbaya moment of a day that descended into endless negotiations and then finger-pointing over two issues key to businesses in rural Colorado.
By the time the state House of Representatives adjourned at 9:39 p.m., the Legislature had rolled back a bill to increase funding for rural broadband.
No gas for Energy Office
They also had failed to pass a reauthorization bill for the Colorado Energy Office, meaning that the majority of the office’s functions and its 24-person staff will disappear July 1. Continue reading