Category Archives: Legal Issues

Jan 14

Guv talks 2016 Budget, Hospital Provider Fee, & TABOR

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011316_3a_hick_ashby

Gov. John Hickenlooper said his annual State of the State speech on Thursday will have something for everyone. One of the biggest topics of the session will be over what to do about the state’s annual budget.

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By Charles Ashby
Tuesday, January 12, 2016

DENVER — Never mind the state’s budget woes, affordable housing or hydraulic fracturing, the most immediate thing for Coloradans to worry about right now is one important question: Peyton Manning or Brock Osweiler?

That, at least, from Gov. John Hickenlooper in talking about who the Denver Broncos should start in Sunday’s playoff game against the Pittsburgh Steelers.

“The Broncos have established once again that they are a team blessed,” the governor told the media in a pre-legislative press conference to talk about the 2016 session that starts today. “My inclination then is, given that there seems to be some level of intervention from somewhere, that would push me to support Peyton Manning. Lord knows, he has had one of the most blessed careers.”

Beyond that, the governor said one of the biggest topics of discussion this session will be over what to do about the state’s annual budget. Continue reading →

Jan 12

Colorado Superintendents ask for increased funding

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January 12, 2016 12:20 PM· By Sherrie Peif

Brian Ewert, Littleton Public Schools, left back and Dan McMinimee, Jefferson County Public Schools right back listen to speakers advocate for increased education funding at the state capitol.

Brian Ewert, Littleton Public Schools, left back and Dan McMinimee, Jefferson County Public Schools right back listen to speakers advocate for increased education funding at the state capitol.

About a hundred teachers, school board members, union activists and others gathered Monday at the Colorado Capitol to support superintendents from across Colorado in their effort to increase funding for their school districts.

The exact number of superintendents on hand was not known, but organizers say superintendents from 167 of the 178 districts in Colorado support the efforts, which started with many lobbying legislators to support reclassifying the Hospital Provider Fee as an enterprise fund so it falls outside the requirements of the Colorado Taxpayer’s Bill of Rights (TABOR). The Independence Institute, a free-market think tank in Denver, says the Hospital Provider Fee is nothing more than a bed tax*.

The move would free up hundreds of millions of dollars under TABOR and leave the state free to fund other programs such as education. Superintendents say that since 2010 they have lost $5 billion in funding due to the “Negative Factor,” a budgeting mechanism used by the Colorado General Assembly to restrain total spending on public education while still allowing base spending to rise by enrollment plus inflation each year.

 

Continue reading →

Jan 12

Colorado governor’s wedding the kickoff for what could be testy legislative session

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By: Megan Schrader

Updated: January 12, 2016 at 5:29 pm

photo - Colorado Gov. John Hickenlooper insisted he can work with Republicans on his plan to avoid having to give refunds to taxpayers. Associated Press photo.
Colorado Gov. John Hickenlooper insisted he can work with Republicans on his plan to avoid having to give refunds to taxpayers. Associated Press photo.

DENVER – Gov. John Hickenlooper will get married Saturday in a small private ceremony, kicking off a 120-day stretch of work where he will try to tackle a bungled budget with lawmakers during the 2016 General Assembly.

Hickenlooper, 63, got engaged to Robin Pringle, 37, two weeks ago. He said he proposed at their home in Denver.

“I manned up, right?” Hickenlooper said Tuesday in his pre-session media availability. “I had been trying to talk her out of it for months and she still seemed eager. … I just looked her in the eye and said ‘Should we do this? Would you be willing to get married and be my wife?’”

Hickenlooper will be busy this session trying to sell his plan to keep about $212 million in the budget instead of refunding it to voters through TABOR-mandated refunds.

“Go compare us to our neighboring states. Go compare us to our peer states to Minnesota and Tennessee. … We’re as tight a budget as anybody,” Hickenlooper said.

The Taxpayer’s Bill of Rights, approved by voters in 1992, mandates that state spending not increase beyond a certain rate without approval from voters. The 2015 tax year is the first time in several years that voters throughout the state will receive the refunds.

 

Continue reading →

Jan 11

Questions about Taxpayer’s Bill of Rights and Colorado enterprise funds

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Questions about Taxpayer’s Bill of Rights and Colorado enterprise funds (2 letters)

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Colorado Senate President Bill Cadman watches as attendance is taken during a session of the legislature at the state Capitol on May 6, 2015. (Brent Lewis, Denver Post file)

Colorado Senate President Bill Cadman watches as attendance is taken during a session of the legislature at the state Capitol on May 6, 2015. (Brent Lewis, Denver Post file)

Re: “Legal memo complicates Hickenlooper’s hospital provider fee effort,” Jan. 7 news story; and “Yet more trouble for state budget,” Jan. 8 editorial.

The hair-splitting continues between the branches of state government regarding the definition of an enterprise for the purposes of the Taxpayer’s Bill of Rights. The discussion is way down in the weeds, with one side focusing on what theoretically constitutes an enterprise and the other on the crippling result of applying the TABOR status quo.

In fiscal year 1993, the year after TABOR was passed, state enterprise fund revenues were approximately 4.5 percent of total state revenues. By fiscal year 2014, conversions had grown that to about 28.4 percent. While passing the legal test, many of the current enterprises fail the man-on-the-street “smell test.”

 

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Jan 10

State’s school superintendents plan rally on Capitol Hill Monday to ask for more money

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January 8, 2016 4:21 PM· By Sherrie Peif
Photo credit: Todd Shepherd

Photo credit: Todd Shepherd

The education funding battle enters its next round with a new online database supporting superintendents across the state in their effort to convince legislators to spend more money on their districts.

Although schools have been calling for more money since the 2008 recession spawned the “Negative Factor,” this most recent campaign first started shortly after the November election with the superintendent of Littleton Public Schools mailing a flyer to 47,000 residents in his district.

The Negative Factor is a budgeting mechanism used by the Colorado General Assembly to restrain total spending on public education while still allowing base spending to rise by enrollment plus inflation each year. The negative factor reduces funding to school finance factors not covered by Amendment 23, which include school district size, local cost-of-living, and the number of low-income kids in a district. The Colorado Supreme Court recently ruled that the negative factor is constitutional.

The flyer, which cost the district nearly $10,000, urged residents to contact legislators and support reclassifying the Hospital Provider Fee as an enterprise fund so it falls outside the requirements of Colorado’s Taxpayer’s Bill of Rights (TABOR). The move would free up hundreds of millions of dollars under TABOR, despite the fact that many view the “fee” as a tax.

LPS Superintendent Brian Ewert told the Parent Teachers Association that he expects 168 of the state’s 178 school districts to do the same.

It now appears that the head of the state’s second-largest district has joined Ewert in the effort.

 

Continue reading →

Jan 10

Cadman: Somebody knew hospital provider fee is unconstitutional

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Cadman: Somebody knew hospital provider fee is unconstitutional

But Democrats counter that it’s up to courts to decide: ‘Lots of lawyers will have lots of different opinions’
1/6/2016

By Kara Mason

The Colorado Statesman

It only took 40 minutes for the Office of Legal Services to return Senate President Bill Cadman’s request last week for a memo on whether the Legislature can legally recast the state hospital provider fee as an enterprise fund. The short answer is no, the maneuver wouldn’t comply with the Colorado Constitution.

Cadman, R-Colorado Springs, believes someone else — a lawmaker, a state official — must have requested the same information and failed to share it.

Senate President Bill Cadman displays a memo from the Colorado Legislative Legal Services office answering whether a proposal to reclassify the state’s hospital provider fee would be constitutional at a press conference in his office on Jan. 6 at the Capitol.

Photo by Kara Mason/The Colorado Statesman

“Our guys are really good,” Cadman said. But not that good. Cadman doesn’t think legal services could crank out an opinion on the topic in under an hour.

“Somebody had it, and I wish they would have shared it with us,” he said.

Cadman broke the news to reporters Wednesday afternoon in his office, saying that more reporters — the 10 that were present for the briefing — have seen the memo than have members of his caucus.

 

Continue reading →

Jan 10

Legal memo upsets effort on Colorado hospital provider fee

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Dive Brief:

  • A memo from Colorado’s Office of Legislative Legal Services says it woud be unconstitutional for state legislators to exempt the current hospital provider fee program from the revenue limits of the Taxpayer’s Bill of Rights (TABOR) by turning it into an enterprise fund, state senate President Bill Cadman announced this week.
  • Gov. John Hickenlooper (D) has been pushing for the change to boost funding for transportation, to which the provider fee is tied.
  • As it stands, the fee is pushing the state above its revenue cap, which requires taxpayer refunds despite shortfalls in other budget areas, the Denver Post reports.

Continue reading →

Jan 09

Review: Building a Better Colorado

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Review: Building A Better Colorado

I attended one of the meetings put on by Building a Better Colorado (BBC). It was a thinly veiled attempt to control the narrative on several issues facing Colorado.

This was a two-hour session run by a moderator for a group of about 60 people. The time started with the moderator describing the 3 broad problems/issues (as defined by BBC) to be discussed. Then some time was spent on each issue/problem. Each issue/problem was put in front of the group with various possible responses/solutions. 10 or so minutes were given for each table of 4-8 people to discuss, and then a series of possible responses/solutions were put to a multiple choice vote for that issue/problem. Clicker devices were distributed for people to vote on their response to each response.

The three broad issues were 1) the initiative process for amendments to state law and amendments to the constitution, 2) fiscal policy and TABOR, and 3) the primary voting process.

Here was the basic formula:

Premise: There’s a problem, and here’s our definition/spin on what it is.

What should we do? A. Nothing, B. Our potential Ballot Initiative, C. Our other potential Ballot Initiative.

Vote on how you feel about A.
Vote on how you feel about B.
Vote on how you feel about C.

Here are some specific examples, quoting directly from the handout used in the presentation. After talking about what a huge problem the initiative process is, 2 questions were asked. Here is question #2…

“Should we require a higher threshold for passage of amendments to the CONSTITUTION than for citizen-initiated amendments to state LAW?”

Vote on A: “Maintain current policy…” Of course, a majority of people, having just heard what a problem this is, vote that we need to do something.

Vote on B: “Make it harder to amend the constitution by requiring future amendments to be approved by a supermajority (2/3) vote, but allow fixes/changes to existing language to be approved by the same simple-majority threshold by which it was adopted initially.” People pick from 3 levels of support and 3 levels of opposition.

That’s it. No other choices. On to the next topic.

It was similar with TABOR. Continue reading →

Dec 27

Important questions about TABOR and their answers, part one

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James Redmond
jredmond@greeleytribune.com

Colorado’s unique tax law — the Taxpayer’s Bill of Rights, or TABOR — will likely become a point of conversation and contention during much of 2016 in both the legislative session and at the ballot box.

Gov. John Hickenlooper’s budget request attributed some of the need for millions of dollars in cuts to the constitutional amendment that is seen by some as too restrictive a way to govern Colorado’s spending.

Movement is already afoot to make change. As an example, a nonpartisan group of state leaders called Building a Better Colorado has been traveling Colorado this year to find consensus on a possible ballot initiative in November to change parts of TABOR.

In addition, state Democrat lawmakers have said they plan to bring back last year’s failed hospital provider fee bill, a potential work-around TABOR to create wiggle room in the state’s budget. The hospital provider fee, which is assessed on hospitals to help pay for indigent health care, has raised so much money that it has bolstered state budgets past TABOR limits, requiring the state to issue taxpayer refunds. Continue reading →

Dec 19

Blake: A bad week for TABOR

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Photo and copyright: Tony's Takes - used by permission

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

It was a bad week for the Taxpayer’s Bill of Rights and it doesn’t look like it’s going to recover any time soon under the Colorado court system.

Two TABOR-based suits were rejected, one by the intermediate Court of Appeals and another by Denver District Judge A. Bruce Jones.

The Colorado Union of Taxpayers Foundation had sued the city of Aspen in 2012 on grounds that its city council imposed a 20-cent charge on disposable grocery bags instead of putting the issue to the voters.

 

Continue reading →