Governor John Hickenlooper addresses his supporters at Union Station in Denver, Tuesday, November 4, 2014. (AAron Ontiveroz, The Denver Post)

The month before his second term starts, Gov. John Hickenlooper is painting a bleak picture of Colorado’s future budget situation, even as the state’s economic fortunes improve.

“Some of the things we’ve taken for granted and counted on in terms of our quality of life, we probably won’t be able to continue to afford,” he told the Denver Forum at a luncheon Tuesday.

The reason for the strife, the Democrat made clear, is the state’s constitutional spending limit known as the Taxpayer’s Bill of Rights.

It’s politically volatile to point the finger at TABOR, and Hickenlooper sought to walk a fine line as he raised questions about its impact.

In fiscal year 2016, Colorado is forecasting taxpayer refunds because the state’s revenues are exceeding the inflation-plus-population-growth-cap for the first time in 15 years.

Unless lawmakers seek to keep the money, the refunds will go out the door even as the state struggles to meet its constitutional requirement to fund education under what is known as Amendment 23. The state is short $900 million on education funding, according to analysts. Continue reading →

A Colorado taxpayer refund of around $15 could keep the Colorado Department of Transportation from getting $271 million for its Interstate 70 viaduct project.

CDOT has been working on a plan to lower the I-70 viaduct, put a cap over some of the road and add two toll lanes in each direction from Interstate 25 to Interstate 225. That project is estimated at $1.2 billion.

CDOT was anticipated $271 million from the state, as a result of a funding mechanism from a Senate bill (SB 228) passed in 2009. However, if Colorado taxpayers are due a Taxpayer Bill of Rights (TABOR) refund, then CDOT’s share of state money would be reduced or eliminated altogether. Continue reading →

In an interview with Colorado Public Radio, Democratic Governor John Hickenlooper bemoaned the idea that the State of Colorado would have to refund tax dollars to taxpayers as part of the Colorado constitution.  From the article:

“Hickenlooper says [giving funds back to taxpayers] will mean the state may have to cut some essential services. As an example, he says the state won’t be able to provide oversight of nursing homes to the extent it currently does — and at a time when the nursing home population is growing.”

Given this dire proclamation that nursing homes will lack oversight – Grandma is in danger! – we assume that the state budget contains absolutely no fat that it could trim from superfluous or wasteful programs.  Wait.  What’s that?  There are areas of massive waste.  But, what about Grandma?  Here are some suggested areas from which to cut the fat:

• Rein in Connect for Health Colorado’s spending as a recent audit showed that the exchange was blowing through tax dollars, some of which enriched Democratic political operatives, like Hick’s campaign team.  While much of the exchange was federally-funded, the state spent at least $20 million in 2013 to support the out-of-control organization.  The worst offense?  Nearly $40,000 for promotional lip balm.  Grandma could have some silky soft lips with $40,ooo in chapstick.  Then, there was the firm given $129,000 to engage voters in healthcare – a contract that the audit found to be so incomplete that it was unclear whether campaign finance laws were broken. (We’re guessing yes.)
• Leave the Morrison bridge alone.  U.S. Sen. Tom Coburn listed this bridge as one of the worst wastes in the country in his 2014 annual “Wastebook”.  Apparently, there was talk about whether the bridge would have to be torn down for not using enough steel manufactured in the United States.  We can appreciate the sentiment, but wasting more tax dollars isn’t the answer.  This would cost at least $20,000 to fix, according to the report.

Continue reading →

PHOTO: Colorado may have to return the $30 million collected so far from the tax on recreational marijuana because of the state’s Taxpayer Bill of Rights, or TABOR law. Photo credit: Meghan Barkley/Flickr.

December 16, 2014

DENVER – At least $30 million has been generated so far by Colorado’s special tax on the sale of marijuana, but some “fine print” in the Taxpayer Bill of Rights (TABOR) law may force the state to refund the money marijuana sales have generated, instead of it going to schools.

According to Proposition AA, passed in 2013, the first $40 million generated by taxes on recreational marijuana would be allocated to build and fix rural schools.

Economist Chris Stiffler with the Colorado Fiscal Institute says the story reads much like a popular holiday cartoon.

“Twice now, voters have said they want to tax marijuana and give it to schools,” says Stiffler. “Now, because of this weird quirk in TABOR, we’re going to have to actually return all the money generated from the marijuana taxes. This is like the Grinch sneaking into town on Christmas Eve and instead of stealing your presents, stealing the roof off the schools.”

The refunds will be issued because the state’s estimate of the total tax revenue it would have at this point was off by less than one percent. That includes all tax revenue, not just the tax on marijuana. Under TABOR, that discrepancy triggers tax refunds. As for how the refund will be handled – one proposal would temporarily lower taxes on recreational marijuana.

Stiffler says the current issue with TABOR is an example of why the amendment creates impractical situations for the state as it enacts policies.

“On paper, TABOR looks really good when you talk about voters’ ability to vote on their own taxes,” says Stiffler. “But when you really think about TABOR, you run into a lot of these unintended consequences. This marijuana rebate, the fact that we have to maybe vote three times to tax marijuana and give it to schools, is one of those consequences.”

Stiffler says it’s likely Colorado voters will have to approve the tax on recreational marijuana an additional time. Last year, 65 percent of voters approved Proposition AA.

Stephanie Carson, Public News Service – CO

– See more at: http://www.publicnewsservice.org/2014-12-16/consumer-issues/youre-a-mean-one-mr-grinch-tabor-may-take-money-from-colorado-schools/a43398-1#sthash.Z8UMxCoD.dpuf