Jan 16

Fight over TABOR expected in Denver this session

Eric Fink, Multimedia Journalist, eric.fink@krdo.com
POSTED: Jan 15, 2016 

TABOR fight looms as session gets underway

DENVER – In a tight budget year in Denver, Gov. John Hickenlooper wants to take more than $200 million that’s set to go back to taxpayers under TABOR and put that money towards new programs for education and roads.  GOP leadership, however, argues that’s unconstitutional.

“Right now no one can say with a straight face that our budget rules are working for us,” Hickenlooper said Thursday in his State of the State address.

A Colorado Springs state senator  who chairs the senate education committee believes that plan only hurts Coloradans’ wallets.

“When we’re supposed to give several hundred million dollars back to citizens they want to move it out from TABOR so it doesn’t hit us up against that constitutional cap and how much money the government can take in, so they can keep more of people’s money,” Sen. Owen Hill said. “That’s a non-starter in an economy that continues to be sluggish, we continue to struggle with higher levels of unemployment than we should.”

Jan 16

Part 2: Important questions about TABOR and their answers

n a special article last week, experts and politicians on both sides of the aisle answered key questions about The Taxpayer’s Bill of Rights, or TABOR.

TABOR 2016Through answers to four questions, experts introduced readers to the basics of the constitutional amendment, how it factors into the state budget, how enterprise funds can move around TABOR and what the tax law requires voters to approve.

The state’s unique tax law likely will become a point of conversation and contention during much of this year. Some in government see TABOR as too restrictive a way to govern Colorado’s budget and others argue it keeps excessive spending in check.

Officials have cited TABOR as a reason for proposed cuts in the next state budget, a state group is looking to see if people would vote to change parts of the constitutional amendment and state Democratic lawmakers want to try and work around parts of the tax law with enterprise funds.

Some parts of TABOR aren’t as unique to Colorado as they may sound. To address that idea and more, here is the second of two articles — researched with politicians and experts on both sides of the political spectrum — offering some important questions about TABOR and their answers:

How many other states have TABOR, or tax codes with TABOR-like elements? Continue reading

Jan 14

Guv talks 2016 Budget, Hospital Provider Fee, & TABOR

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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.


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

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.

 

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Jan 12

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

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.

 

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Jan 11

Douglas Bruce’s Response to Mike Foote’s Editorial

douglas bruceThe Colorado TABOR Foundation received the following response from Douglas Bruce regarding Mike Foote’s editorial:
 
In the Camera, a local politician calls the Taxpayer’s Bill of Rights (TABOR) “A 24-year-old constitutional amendment championed by a discredited anti-government crusader and convicted tax evader…” My 2005 “offense” was giving my entire county commissioner salary to charity. I was denied time to get an attorney, a local jury trial, the right to subpoena witnesses, and many other “rights” we thought we had. The IRS audited me and said the tax deduction was lawful and I was innocent, but their testimony was not allowed. The state case awaits a federal court hearing.
 
Mike Foote uses that frame-up to urge you to vote away your right to vote on taxes–a
classic personal attack. Now you know why the case was filed.
 
TABOR cuts nothing–never has, never will. TABOR applies only to 60% of state revenue. The spending growth limit applies only to excess revenue above an automatic growth rate that provides the state hundreds of millions in new revenue yearly. We can let the state keep all revenue, as in the pot tax refund vote last November.

Continue reading

Jan 11

Mike Foote: TABOR cuts to schools and roads are coming

Mike Foote: TABOR cuts to schools and roads are coming

By Mike Foote

Posted:   01/09/2016 07:55:55 PM MST

A car hits a pothole on Boulder’s Canyon Boulevard last winter. State Rep. Mike Foote says TABOR is likely to cause further cuts to state funding for

A car hits a pothole on Boulder’s Canyon Boulevard last winter. State Rep. Mike Foote says TABOR is likely to cause further cuts to state funding for education and road maintenance. (Cliff Grassmick / Staff Photographer)

A 24-year-old constitutional amendment championed by a discredited anti-government crusader and convicted tax evader is now having profound effects on how your state legislators are budgeting for important areas like schools and roads. The 1992 TABOR amendment to the Colorado Constitution may require us to cut from those already under-funded areas despite your clear directions to us otherwise.

Let me explain this unfortunate situation a little further: TABOR requires the state to return tax revenues if those revenues exceed an amount based upon an arbitrary equation. When the economy does well, the state must return money it could otherwise use to invest in the future. The condition of our under-funded schools and clogged roads account for nothing in the cold calculus of TABOR’s allowed revenue formula.

Colorado’s schools and roads suffered greatly when the economy and tax revenues crashed during the last recession. Now that our economy is improving and revenue has increased, the state cannot invest in those necessary areas. Tax money comes in, and then the state turns around and sends some of it back out. Meanwhile, public school systems are hurting and roads are crumbling.

 

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Jan 10

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

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.

 

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Jan 10

Cadman: Somebody knew hospital provider fee is unconstitutional

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’
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.

 

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Jan 10

Legal memo upsets effort on Colorado hospital provider fee

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.

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