The first batch of state Senate bills popped into the online queue Wednesday, hours after session ended. But one was missing at first: Senate Bill 1, reserved for President Bill Cadman.
Now it’s online, and it’s a big one. The measure would change how the state awards refunds under the state’s Taxpayer’s Bill of Rights — essentially shifting who gets the most money back when the state exceeds its TABOR revenue cap.
It’s a complicated topic, but the analysts at the Colorado Fiscal Institute broke it down. (Spoiler alert: The left-leaning policy organization actually likes the bill.)
A simulation of what the cap would like like over Interstate 70 through the Swansea neighborhood. (Photo courtesy of the Colorado Department of Transportation)
Thanks to constraints of the Taxpayer’s Bill of Rights, the funding for the reconstruction of Interstate 70 through north Denver has fallen apart, outgoing state transportation director Don Hunt told us the other day.
The state is expected to give back at least $137 million to Coloradans for fiscal year 2015-16 in the form of a TABOR rebate, and for complicated reasons that rebate will seriously impact transportation and capital construction funds.
It is further evidence that even in these heady economic times, TABOR is proving to have destructive impacts on basic government services.
It’s Not Our Money to Spend – You Earned It – You Spend It
The 2015 Colorado State Legislative Session brings a number of big issues to the forefront for the Legislature and the people of Colorado: energy development, the marijuana industry, gun restrictions; the list can go on and on with topics that will change the lives of many Coloradans. One topic that has just as much prominence, and has made a big wave among concerned legislators is the tax refund issue and TABOR. If you read nothing further, please take this advice…HOLD ON TO YOUR WALLETS COLORADO TAX PAYERS.
The exact repayment figures and who would qualify remains unclear, but analysts estimate $137 million in TABOR refunds for the 2015 fiscal year.
Many Democrats in the State Legislature aren’t realizing that there are some positives to TABOR. I’m already hearing some on the other side of the aisle offering the tired rhetoric that TABOR makes it harder to restore budget cuts, but in reality, TABOR is a system that provides some benefits. TABOR prevents government overspending, and frankly, I am appalled that there is even the consideration of not returning this money to the people of Colorado. This is money that they are legally entitled to.
An economic viewpoint is, yes, the TABOR refunds will be taking surplus money from the government and giving it back to the people of Colorado. That does not mean that this money will not be put to use to benefit the state as it would if it was left in the hands of politicians. Most people will use this money to pay their bills, some will save it, and some will impulsively spend it. The increase of investing, saving, and consuming will expand the private sector and benefit Colorado’s economic growth. TABOR keeps the growth of the government in line with the growth of the private sector thus creating more economic stability, which in turn benefits everyone.
The people of Colorado enacted TABOR in 1992; therefore by law, it is money that belongs to the people of Colorado. There is always something that the government can spend excess money on, no matter the amount of money the state has control of. Politicians will always find something to allocate it towards. The plain and simple fact of it is, the excess money is not the state’s money in the first place, and that money belongs to the tax payers of Colorado. It is our duty as fiscally responsible representatives of the people of the state of Colorado to honor the TABOR refund and honor the people of Colorado. The people who earned it know best how to spend it.
#majoritiesmatter
Sincerely,
The first batch of state Senate bills popped into the online queue Wednesday, hours after session ended. But one was missing at first: Senate Bill 1, reserved for President Bill Cadman.
Now it’s online, and it’s a big one. The measure would change how the state awards refunds under the state’s Taxpayer’s Bill of Rights — essentially shifting who gets the most money back when the state exceeds its TABOR revenue cap.
It’s a complicated topic, but the analysts at the Colorado Fiscal Institute broke it down. (Spoiler alert: The left-leaning policy organization actually likes the bill.)
Audio: CPR’s Megan Verlee reports on the Legislature’s start
Republicans took control of the Colorado state Senate Wednesday as state lawmakers gaveled to work for their four-month legislative session.
State House members applaud outgoing Democratic Colorado House Speaker Rep. Mark Ferrandino during the opening session of the 2015 Colorado Legislature, at the Capitol, in Denver, Wednesday Jan. 7, 2015.
Incoming Democratic Colorado House Speaker Rep. Dickey Lee Hullinghorst walks to the podium during the opening session of the 2015 Colorado Legislature, at the Capitol, in Denver, Wednesday Jan. 7, 2015.
New Colorado State Senate President Bill Cadman, R-Colorado Springs, presides over the Senate during the opening session of the 2015 Colorado Legislature, at the Capitol, in Denver, Wednesday Jan. 7, 2015.
State House Minority Leader Rep. Brian DelGrosso, R-Loveland, holds his 21-month-old son Zackary and sits with his wife Amber, right, during the opening session of the 2015 Colorado Legislature, at the Capitol, in Denver, Wednesday Jan. 7, 2015.
New Colorado State Senate Majority Leader Mark Scheffel, R-Parker, speaks during the opening session of the 2015 Colorado Legislature, at the Capitol, in Denver, Wednesday Jan. 7, 2015. Republicans have control of the Senate for the first time in a decade.
(AP Photo/Brennan Linsley)
Senators and their guests bow their heads during a prayer as the Colorado Legislature kicks off its 2015 session on Wednesday, Jan. 7, 2015.
(Photo: CPR/Megan Verlee)
Economic opportunity, education funding, business development: Whatever issues you care about, there’s a good chance the 70th Colorado General Assembly will try to do something about them in the coming months.
The lawmakers convened Wednesday with Democrats still in the majority in the House. But the Senate is now under Republican control, for the first time in a decade. Compromise will be key to getting bills passed.
DENVER – After a year of bitter contention over stricter gun laws, Colorado Republicans proposed bills on Wednesday that seek to repeal controversial legislation that was passed by Democrats in 2013.
The laws, which bans the possession of large-capacity (more than 15 rounds) magazines and require background checks for all private gun sales, triggered at least one lawsuit against the state and played a part in recall elections that put two southern Colorado lawmakers out of office.
HB 15-1009 would repeal the law banning possession and sale of large-capacity magazines. HB 15-1050, brought forward by Colorado Springs Republican Rep. Janak Joshi of House District 16, aims to repeal the background checks for the transfer of guns from non-licensed carriers.
Wednesday’s opening day of the Colorado legislative session included more than the anticipated repeal of gun laws.
Senators and their guests bow their heads during a prayer as the Colorado Legislature kicks off its 2015 session on Wednesday, Jan. 7, 2015.
(Photo: CPR/Megan Verlee)
Economic opportunity, education funding, business development: Whatever issues you care about, there’s a good chance the 70th Colorado General Assembly will try to do something about them in the coming months.
The lawmakers convened Wednesday with Democrats still in the majority in the House. But the Senate is now under Republican control, for the first time in a decade. Compromise will be key to getting bills passed.
The parties do seem to be on the same page in at least a few big areas, including boosting school funding and expanding workforce development programs.
However, Senate President Bill Cadman brought an agenda that also includes more polarizing ideas, like cutting regulations on business.
“Rolling back costly, useless regulations will make us more competitive. And if we are not sharpening our competitive edge in every place we can, we are losing it in every place we don’t,” said, while also warning of coming fights over what the state should do with its growing state tax revenue.
“We are about to face one of the best problems we have had in this legislature in a long time. It’s called prosperity,” Cadman said.
As soon as this year, Colorado may start sending money back to residents, as required by the Taxpayers Bill of Rights. Senate Republicans have said those refunds must go out. But Some Democrats want to ask voters to instead put the money into full-day kindergarten.
In the House, Speaker Dickey Lee Hullinghorst warned that too few Coloradans are benefiting from the growing economy.
Governor Hickenlooper unveils next year’s Colorado budget & taxpayer refunds
December 30, 2014
by Lisa Cyriacks
For the first time in many years, Colorado government finds itself in a position of having to refund tax revenue to voters. The refunds are required when state revenue exceeds the combined rate of inflation and population growth.
Taxpayer rebates totaling $167.2 million are mandated by Colorado Taxpayer’s Bill of Rights (TABOR), assuming current law and the accuracy of the September forecast by the Office of State Planning and Budget.
A $30.5 million rebate for new marijuana taxes is coming. Total state marijuana revenue was different than what was projected in the election blue book. (In November 2013, Colorado voters approved Proposition AA, which allowed a 10% retail sales tax and a 15% excise tax.) Because the estimated revenue subject to TABOR was underestimated, under TABOR the state must refund the money being collected or ask voters again to keep it for additional state spending.
According to Governor Hickenlooper, it will be important to engage the legislature when the session begins on the issue of marijuana sales tax revenue rebates. At the time he presented the proposed budget he advised that it would be unwise for the state to plan to spend any of those funds in advance of that discussion. Continue reading →
Colorado lawmakers may have to refund money to taxpayers sooner than they initially expected.
Refunds are a sign of Colorado’s booming economy. But they also mean lawmakers will be restricted in how much money they’ll be able to keep and spend under Colorado’s Taxpayer’s Bill of Rights, also known as TABOR. It requires refunds when revenue exceeds the combined rate of inflation and population growth.
State economists giving lawmakers a quarterly revenue forecast Monday gave conflicting estimates about whether refunds are required in the 2015 tax year. Legislative economists say no but warn that the possibility exists.
Gov. John Hickenlooper’s economists predict, however, that the state needs to refund $196.8 million next year because of revenue increases in the current budget year. Lawmakers weren’t expecting refunds until the 2016 tax year, and Hickenlooper’s budget request sets aside nearly $137 million for those.
But the latest predictions by the governor’s economists have increasing revenue collections in cash funds and severance taxes, hence their predictions for sooner-than-expected refunds. Henry Sobanet, Hickenlooper’s budget director, said the state has a revenue cushion to cover most of the $196.8 million that needs to be refunded. Still, about $73 million of that was already budgeted, so the governor’s office will present lawmakers with an adjusted spending plan by Jan. 2 to account for that amount. Continue reading →
Colorado’s economy keeps getting better, and it continues to be reflected in the amount of money the state takes in from taxes.
That’s the conclusion from the latest estimates from state officials that show overall tax collections continue to improve in the state, coinciding with the continuing improvement in the state’s economy.
Revenue forecasts released Monday from the Office of State Planning and Budgeting (OSPB) and the nonpartisan Legislative Council both showed increases in forecasted revenues. The forecasts are used to set budget priorities for the state government for the remainder of the current fiscal year, which ends on July 1.
The more conservative forecast, from OSPB, suggests that general-fund revenues in the 2015-2016 fiscal year will be $53.6 million more than previously forecast just three months ago, when forecasters agreed that about $1 billion more in revenue would be available to lawmakers for spending on state programs in the coming fiscal year.
Forecasters continue to predict, however, that lawmakers will have to set aside as much as $120 million of the increased revenue to pay refunds to taxpayers mandated by the Taxpayer’s Bill of Rights, which limits the amount of increased revenues the state can take in and how much lawmakers can spend each year. Continue reading →
