Category Archives: Education

Jun 03

Interrogatory On House Bill 21-1164 TABOR Public School Finance Act

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On May 24, 2021, the Colorado Supreme Court continued its crusade against the Taxpayer’s Bill of Rights. It allowed the General Assembly, yet again, to maneuver around TABOR’s constitutional restrictions and effectively raise taxes without getting the required voter approval. The procedure used by the General Assembly was the unusual one of submitting Interrogatories to the Supreme Court, which ask whether their proposed scheme is allowed, prior to passing the law.

At issue were the mill levy rates in 174 separate school districts. The voters in all of these districts had, with varying language and circumstances, voted to exempt their districts from the necessity of returning excess revenues to their taxpayers.  The districts were then impacted by the Colorado Department of Education’s determination that, in order to prevent revenues from increasing, they had to lower their mill levies as property values increased, and therefore, property tax revenues increased.

The legislature proposed, and now has passed, a complex plan to eliminate tax credits, which it created just last year, gradually over the course of the next 19 years. Of course, the State imposition of higher mill levies and its elimination of tax credits will raise taxes. Given the increase in Colorado property values, the increases will be significant.

The TABOR Foundation, filed a friend of the court (“amicus”) brief, written by attorney Rebecca Sopkin.  The TABOR Foundation’s participation gave you a voice in this matter.  The filing protested this clear evasion of the requirement that voters approve any increases in their taxes.

Justice Brian Boatwright, in a well written dissent, pointed out that taxpayers “will see an increase in their mill levy rates as a result of” the proposed legislation, HB1164. He then noted that “[t]he voters today did not approve of this, and neither did the voters in the late 1990s.”  The court majority, however, disregarded the obvious impact of this legislation and gave its tax increases the green light.

Colorad Supreme Cout Opinion by The Forum on Scribd

May 12

Federal appeals court to consider future of lawsuit over Colorado’s TABOR

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Federal appeals court to consider future of lawsuit over Colorado’s TABOR

The 1992 Taxpayer’s Bill of Rights requires that tax increases be approved by voters

12:23 PM MDT on May 5, 2021

Two women walk up the steps on the 10th Circuit Court of Appeals in Denver, on Oct. 16, 2018. (John Ingold, The Colorado Sun)

The Denver-based 10th U.S. Circuit Court of Appeals will consider whether a long-running lawsuit challenging Colorado’s strict tax and spending limits as unconstitutional can proceed.

Colorado Politics reports that a nine-judge panel will consider on Monday a review of the lawsuit, which was filed in 2011 by group of elected officials.

The 1992 Taxpayer’s Bill of Rights requires that tax increases be approved by voters. It also requires the state to refund tax revenue that exceeds a figure determined by a formula based on inflation and population growth.

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May 12

9 federal judges set to decide fate of TABOR repeal lawsuit

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9 federal judges set to decide fate of TABOR repeal lawsuit

Hickenlooper submits his final state budget, but it may not last long
Exactly 10 years after a group of local and state elected officials first filed a legal challenge to Colorado’s most celebrated — and vilified — constitutional provision, the entirety of the Denver-based federal appeals court will now consider whether to pull the plug on that fight.

On Monday, the U.S. Court of Appeals for the 10th Circuit, which hears appeals from Colorado and five surrounding states, will hold a rare all-judges hearing, known as an “en banc” review, of the lawsuit seeking to overturn the state’s Taxpayer Bill of Rights. Although appellate courts typically issue decisions in panels of three judges, the 10th Circuit in October granted en banc review of the TABOR case.

Such hearings are highly atypical: from October 2018 through September 2019, the 10th Circuit only heard one case en banc out of more than 1,100.

There are 12 authorized judgeships on the 10th Circuit that require presidential nomination and U.S. Senate confirmation. However, only nine judges will participate in the en banc panel: five who were nominees of Democratic presidents and four who were Republican nominees.

The diminished number is the result of two Clinton administration appointees retiring from active status earlier this year. One of them, Senior Judge Mary Beck Briscoe, will join the en banc hearing. In addition, of the 10 remaining active judges, Scott M. Matheson Jr., a nominee of President Barack Obama, and Joel M. Carson III, a nominee of Donald Trump, have each recused themselves.

TABOR, a 1992 constitutional amendment, limits the amount of revenue the state can collect and spend, and requires voter approval for new taxes and tax rate increases. The amendment also provided a mechanism to refund revenue collections to taxpayers in excess of a formula based on inflation and population growth. Colorado refunded nearly $3.5 billion in the quarter-century since TABOR’s passage.

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May 12

Debunking the top 5 misleading claims about Colorado’s Taxpayer Bill of Rights experience

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  • Debate over North Carolina’s recently proposed Taxpayer Bill of Rights will begin heating up soon
  • Opponents will likely try to portray Colorado’s experience in a negative light, to serve as a warning
  • Their major claims, however, are easily debunked

North Carolina legislators recently filed a bill that would enable voters to decide if a Taxpayer Bill of Rights should be added to the state constitution.

The main feature of a Taxpayer Bill of Rights is that it would limit the annual growth rate of the state budget to a rate tied to inflation plus population growth. Other provisions would require voter approval of tax increases and mandate that excess revenue collections be used to bolster the state’s Rainy Day fund and refunded back to taxpayers.

The benefits of a Taxpayer Bill of Rights are many, most notable in that it would make permanent the fiscal restraint that conservative lawmakers have exercised over the last decade. Common-sense restraints on spending can smooth out spending cycles, better prepare the state for economic downturns, and enable tax cuts to make North Carolina more competitive for investment and job growth.

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May 10

Federal judges to hear TABOR repeal, appellate court deals with censured judge

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COURT CRAWL | Federal judges to hear TABOR repeal, appellate court deals with censured judge

Courthouse close with Justice inscribed
jsmith, iStock image
Welcome to Court Crawl, Colorado Politics’ roundup of news from the third branch of government. Today will feature a rare all-judges hearing in Colorado’s federal appellate court, plus the state’s Court of Appeals last week issued guidance for parties who appeared before a now-censured judge.

TABOR saga continues

This morning, the entire roster of judges on the Denver-based federal appeals court will hear oral arguments in the decade-long lawsuit over whether to declare Colorado’s 1992 Taxpayer Bill of Rights unconstitutional. Today’s hearing likely won’t end the lawsuit: the question before the judges is whether political subdivisions, like school districts or boards of county commissioners, have legal standing to sue for TABOR’s repeal.

•  Listen live at 10 a.m. here.

COURT CRAWL | Federal judges to hear TABOR repeal, appellate court deals with censured judge | Courts | coloradopolitics.com

May 03

Objectors unsuccessful at blocking property tax cuts at Title Board

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The Title Board reconsidered its ballot titles for three property tax reduction proposals at its April 30, 2021 meeting.

Opponents were unsuccessful at derailing three ballot initiatives that would cost local governments more than $1 billion in property tax revenue as the Title Board on Friday stuck by its original decision to award a ballot title to the measures.

On April 21, the three-member board concluded Initiatives #26-28 contained a single subject, as the state constitution requires, and consequently set a title that would appear before voters. But objectors Carol Hedges and Scott Wasserman challenged the board’s finding, trigging a rehearing at the Title Board’s final meeting to screen proposals for the 2021 statewide ballot.

As introduced, the initiatives would all reduce the residential property tax assessment rate from 7.15% to 6.5% and cut the assessment rate for all other property from 29% to 26.4%. Nonpartisan fiscal analysts estimated the tax cut would constitute a $1.03 billion hit to local governments, affecting services such as K-12 education and police. Because Colorado’s school financing scheme requires the state to backfill funding for local districts, there would be an extra $258 million in additional state spending each year.

Partially offsetting the sizeable loss in local government revenue would be $25 million that the state could temporarily direct toward localities — if excess income exists that normally would be refunded under the Taxpayer Bill of Rights. The three proposed initiatives would funnel the money toward fire protection, toward reimbursements for the senior homestead tax exemption, toward general relief.

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Apr 23

COLORADO SUPREME COURT School finance tax change arguments heard

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By Erica Meltzer

Chalkbeat Colorado

The plain language of Colorado’s Taxpayer’s Bill of Rights says that to raise taxes from one year to the next requires a vote of the people.

But what if voters agreed to keep school property taxes steady more than 20 years ago and state officials lowered them instead? Does it take another vote of the people to return tax rates to the previous level? Or does increasing them simply correct an error?

That’s the question the state Supreme Court took up Tuesday as lawmakers seek a solution to a vexing problem in school funding.

Colorado lawmakers sent the court a formal question — known as an interrogatory — last month seeking a constitutional ruling before they give final approval to a bill that gradually would increase local property taxes over 19 years.

If approved, the change would generate more than $90 million in new revenue for schools next year and more than $288 million a year when fully implemented. That would take a big bite out of the funding gap that Colorado schools experience when lawmakers hold back education dollars to pay for other priorities — but the money would come from local taxpayers, not state coffers.

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Mar 26

Millions more for Colorado K-12 schools? Lawmakers seek court opinion first.

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Current Colorado lawmakers want to slowly increase local school district property taxes without a vote. They say it doesn’t violate the Taxpayer’s Bill of Rights because a generation ago voters agreed to higher rates and state officials improperly lowered them.

Erica Meltzer, Chalkbeat
5:54 AM MDT on Mar 24, 2021

Kellee Nolke talks to her kindergarten class at University Elementary School, 6525 W 18th St, in Greeley in 2019. (Joshua Polson, Special to The Colorado Sun)

This story was originally published by Chalkbeat Colorado. More at chalkbeat.org.

Democratic lawmakers are asking the Colorado Supreme Court to decide whether a proposed tax change that could generate millions for K-12 education is constitutional.

Colorado’s Taxpayer’s Bill of Rights typically requires voter approval for tax increases. This proposal would gradually increase local school district property taxes without a vote under the premise that voters a generation ago agreed to higher rates and that state officials improperly lowered them.

On Friday, after giving initial approval to a bill to phase in higher local tax rates over 19 years, senators took the unusual step of sending what’s called an interrogatory seeking the opinion of the state’s highest court. Republicans Sen. Kevin Priola of Brighton and Bob Rankin of Carbondale joined Democrats in what was otherwise a party-line vote on the resolution.

Supporters hope to get a clear answer before the end of the legislative session and include the prospect of additional revenue in the 2021-22 budget. New local taxes would generate more than $90 million next year and could bring in the equivalent of around $288 million a year when they’re fully implemented.

Supporters believe previous case law indicates the court would agree with their interpretation. Legal experts have said the decision could go either way.

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Mar 25

Several key principles the majority of Coloradans support

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Dear Friend,

Even though times may seem more polarizing now than ever, one thing most Coloradans can agree on is that they want every citizen of our state to be allowed to flourish. They may have strong opinions on the issues, but surprisingly, there are still several key principles the majority of Coloradans support.

After conducting extensive statewide polling, I outlined 10 practical ideas the GOP should embrace to address some of the big issues that Coloradans care about:

  1. Continue to protect our Taxpayer’s Bill of Rights (TABOR). Few things are more popular than people being allowed to vote on any tax (or large fee) increase.
  2. Lower taxes. Coloradans overwhelmingly support a property tax cut for both residential and commercial property. With housing costs on the rise, low-income families would especially benefit from this tax cut.
  3. Increase teacher pay. More of the existing money we spend on education should go to teachers instead of the bureaucracy.
  4. School choice. The impact of the pandemic on our education system has led to even more support for parental choice. Colorado should also pass a stipend for families to use for out-of-school learning opportunities – like tutoring.
  5. Public safety. With crime on the rise in many Colorado communities, voters are looking for leadership on this issue. They strongly oppose any destruction of property. And while they are open to reforms within the law enforcement system, they certainly don’t want to dismantle or defund it.

Read all 10 of my ideas here.

With 42% of Coloradans choosing to be unaffiliated with a political party, it’s more important than ever for candidates to be clear about their plans if voters entrust them with power. If Colorado Republicans unite around a few key issues, and drive their message home with voters, I believe the party will quickly begin to make a comeback.

Sincerely,

Michael Fields
Executive Director of Colorado Rising State Action

Mar 12

Colorado’s Competitiveness: The Challenge of Economic Recovery Under More than $1.8 Billion in New Regulations, Taxes and Fees

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Prior to 2020 and the global economic and cultural upheaval caused by the COVID-19 pandemic, Colorado stood out for having strong economic growth and offering a desirable lifestyle. Coloradans had created the #1 state economy and enjoyed competitive advantages in attracting business growth and an educated workforce. In fact, in late 2019, US News World Report ranked Colorado’s business climate as one of the best in the nation.

However, after two periods of negative economic shocks in 2020, in both late spring and through the holidays, the state of business in Colorado remains under duress.

  • There were 150,000 fewer jobs in Colorado in December 2020 relative to the start of the years, representing a 5.4% cut.[i] While the statewide reduction is significant, it masks the disproportionate impacts across industries, as the leisure and hospitality industry was down 90,900 jobs by end of 2020, whereas professional and business services was up 7,100 jobs.[ii]
  • State taxable sales were down $8.9B, or -1.35%, in 2020 relative to 2019.[iii] Small business suffered, especially. As of February 10th, small business revenue was down 29.5% from January 2020 levels.[iv]
  • Colorado’s unemployment rate increased by the 2nd-most among all states, from 2.5% to 8.5%. The Colorado state unemployment ranking went from near first (4th) to almost last (48th).[v]

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