Nov 01

Colorado Taxpayers May See First TABOR Refunds in 15 Years

By Jackson Brainerd

As Colorado’s economy rebounds in the aftermath of the Great Recession, taxpayers may receive a tax refund courtesy of the state’s Taxpayer’s Bill of Rights (TABOR).

TABOR, the nation’s most stringent tax and expenditure limitation, mandates refunds when revenue exceeds the rate of inflation plus population growth, unless voters decide to let the state keep the money.For the first time in 15 years, Colorado’s tax collections are expected to exceed TABOR’s revenue cap. Lawmakers are in a quandary over whether to return the money to taxpayers, or ask their permission to keep it.  Since its implementation in 1992, the state has refunded more than $2 billion to taxpayers.  Voters have chosen to forgo refunds before, however, most notably when they approved Referendum C in 2005 to raise the state’s revenue limit in the midst of a difficult budget climate due to TABOR limitations.

Governor John Hickenlooper, who will submit his proposed budget to the legislature on Nov. 3, has not yet indicated if he will recommend a tax refund, or let voters decide through a referendum. If the surplus is refunded, the Colorado Legislative Council has estimated that lawmakers will need to set aside $125.1 million for fiscal year (FY) 2017 and $392.6 million for FY 2018.

In FY 2017, the refund would come in the form of an earned income tax credit and sales tax refund estimated at $11 per taxpayer. The next year, it would come as a temporary income tax rate reduction from 4.63 percent to 4.5 percent and a six-tier sales tax refund would also become available.

Embroiled in this discussion is the fate of $30.5 million of marijuana tax revenue. Even though voters already approved this money for education spending in 2013 via Proposition AA, it could be returned to them in the likely event that state fiscal year spending  exceeds the 2013 Blue Book estimate for FY 2015.

A TABOR provision regarding new taxes requires a full refund in such cases (though state legislators may be frustrated by the absence of statutory guidelines regarding how these excess tax dollars should find their way back to taxpayers). Should this occur, lawmakers will either have to dip into the General Fund to compensate for the lost education money, or Colorado’s school system will have to go without.

The silver lining surrounding this issue is that Colorado’s economy is growing. While many in the state would like to take this opportunity to rebuild programs that received years of cuts during the recession, others would prefer to see the TABOR refunds carried out.

Jackson Brainerd is a research analyst in NCSL’s Fiscal Affairs Program.

http://www.ncsl.org/blog/2014/10/30/colorado-taxpayers-may-see-first-tabor-refunds-in-15-years.aspx

Oct 28

Colorado Goes to the Supreme Court to Defend TABOR

Three years ago, a group of primarily government plaintiffs sued in federal district court to void Colorado’s Taxpayers Bill of Rights (TABOR). TABOR allows the people, not just the legislature, to vote on most tax increases, most debt increases, and some spending hikes.

http://blog.tenthamendmentcenter.com/2014/10/colorado-goes-to-the-supreme-court-to-defend-tabor/

Oct 27

Petitioner’s Supplemental Appendix To The Petition For Writ Of Certiorari

Plaintiff seeks enforcement of the Taxpayer’s Bill of Rights of the Colorado
Constitution (“TABOR”).  TABOR requires a vote of the people
before the State or any local government may: create new debt, levy new taxes, increase tax
rates, or institute tax policy changes directly causing a net tax revenue gain. Id. Without a vote
of the people, the Colorado Bridge Enterprise has created new debt, levied new taxes, increased
tax rates, and instituted tax policy changes causing a net tax revenue gain to the Colorado
Department of Transportation and the Bridge Enterprise. By taking these actions without a vote
of the people, Defendants have violated the rights of Plaintiff’s members to vote on the
imposition of new taxes and debt, as guaranteed by TABOR. Plaintiff therefore seeks
declaratory and injunctive relief to abate and correct Defendants’ unconstitutional actions.

 

Supplemental Appendix Final

Oct 20

GUEST COLUMN: Ballot Question 1B: A dishonest tax increase

By Jeff CrankPublished: October 20, 2014

El Paso County Ballot question 1B is nothing more than a dishonest attempt to fool voters. Its shameful deception rises to the level of the misleading term-limits language of a few years ago. If you remember the term limits language that implied that a “yes” vote “limited” terms when it actually extended them, then question 1B this year might ring a bell. 1B imposes a tax of $92.40 per year on the average household in El Paso County for the next 20 years and beyond. That is a minimum tax increase of $1,848 per property and likely much higher. However, you wouldn’t know these facts just by reading the ballot language.

Pretty harsh to say it is deceptive, but the facts leave little doubt. First, the language calls the tax a “fee.” Why? If they called it a tax, the Colorado Constitution would require the ballot language to start out by saying “shall taxes be increased by $39,275,650 for 2016 and each year after for 20 years.” By cleverly calling the tax a fee, they can now start the language with “Are you in favor of funding emergency needs caused by flooding.” It was worded this way to enhance the ability to get it passed but it is nothing more than a way to trick you into believing that the money coming out of your pocket is a fee and not a tax. After all, it is on your property tax bill.

The sleight of hand continues. Rather than being honest about how much you’re going to pay each year, they broke down the amount per month. They could have said that it would cost the average homeowner $1,848 over the next 20 years. Instead, they broke down the amount by month – to $7.70 per month. Why not break it down to the day, hour or second? By the way, if you do the math, it is just over a penny per hour tax increase.

Question 1B also creates a government bureaucracy and then exempts it from the Taxpayer’s Bill of Rights provisions of the Colorado Constitution.

In other words, it creates a bureaucracy and then allows that bureaucracy to vote to extend the tax (that they call a fee) without going to the citizens for a vote of the people.

As Mayor Steve Bach, who strongly opposes 1B, stated, “the new $92.40 stormwater fee is about the same amount the average residential property owner now pays for all city services combined.” That’s right, you’ll pay as much property tax for stormwater as you do for police, fire, snow removal, street repair, parks, arts, etc. Imagine this new unaccountable bureaucracy getting as much property tax as the city of Colorado Springs, never having to face an election and having the ability to increase ?the tax at their whim and without voter approval.

If this tax increase of $785 million over 20 years weren’t offensive enough, the audacity of the language should convince any citizen to vote “no.” The drafters of the language trying to pull the wool over voters eyes by calling a tax a “fee”; reducing the yearly tax amount to make it appear smaller; and thumbing their nose at the voters by taking away the right to vote on tax increases make this as deceptive and misleading as any ballot language we’ve ever seen.

Our stormwater problem is real and it should be addressed, but Question 1B is not the answer. I hope you’ll join Mayor Bach, myself and many other community leaders in voting “no.”

Jeff Crank is a talk show host on AM 740 KVOR and the president of Aegis Strategic, LLC.

http://gazette.com/guest-column-ballot-question-1b-a-dishonest-tax-increase/article/1539836

Oct 08

Sen. Mark Udall says TABOR should be left alone

By

Udall made his position known Tuesday night in The Denver Post Senate debate where he and Republican Congressman Cory Gardner squared off.

One of the yes/no questions the pair was asked was about the 1992 voter-approved ballot measure that controls taxation and spending in Colorado. Should it be changed or altered?

Gardner said “no,” a stance adopted by many conservative Republicans over the years. Udall also said “no.”

“You’re kidding,” said former lawmaker Norma Anderson, a Lakewood Republican who is part of a bipartisan group of current and former state legislators and local officials challenging the constitutionality of TABOR in federal court.

“I’ll be damned.”

The suit alleges that TABOR, which prohibits the legislature from raising taxes without a vote of the people, limits the General Assembly’s power in violation of the U.S. Constitution guarantee that states have a “republican” government, in which the authority to govern is given to elected officials. The plaintiffs argue in court filings that TABOR has caused “a slow, inexorable slide into fiscal dysfunction” in Colorado.

Gardner called out Udall on his TABOR answer.

“I find it curious that Sen. Udall supports TABOR when he actually has supported tax increase after tax increase at the state level,” he said, during the debate.

Democratic U.S. Sen. Mark Udall and his challenger,  Republican Rep.  Cory Gardner, at The Denver Post debate Oct. 7  (Photo By Brent Lewis/The Denver Post

http://blogs.denverpost.com/thespot/2014/10/07/mark-udall-tabor-gardner-taxpayers-bill-of-rights/113647/

Oct 08

Adams County District Court Judge Ted Tow rules that lawsuit challenging Aurora Gaylord project can proceed

Adams County District Court Judge Ted C. Tow ruled last Friday (29 August 2014) that a lawsuit challenging tax incentives offered by the city of Aurora to developers of the Gaylord hotel project can go forward.  Plaintiffs had challenged Aurora’s tax incentives – including creation of an “enhanced taxing area” and a special election to raise taxes to finance the project – violated Colorado’s Taxpayer Bill of Rights, or TABOR.

As reported in a recent Colorado Springs Gazette article,

The Aurora City Council ?authorized the enhanced taxing area and the election to raise taxes at a meeting in June 2011. Only one person voted in the election as the land included in the taxing area is owned by a single corporate entity.

Rather takes the “one man, one vote” principle to a whole new level, eh?

Clear The Bench Colorado will, with your support, continue to promote transparency and accountability in the Colorado judiciary, informing the public to increase awareness of the substantial public policy implications of an unrestrained activism and political agendas in the courts.  We will continue to work to educate voters and provide information of relevance related to the judicial branch, and to provide useful and substantive evaluations of judicial performance.

However, we can’t do it alone –  we need your continued support; via your comments (Sound Off!) and, yes, your contributions.  Freedom isn’t free –nor is it always easy to be a Citizen, not a subject.

Ultimately, though – it’s worth the effort.

http://www.clearthebenchcolorado.org/2014/09/01/adams-county-district-court-judge-ted-tow-rules-that-lawsuit-challenging-aurora-gaylord-project-can-proceed/

Oct 01

No benefits to TABOR according to the CEA

TABOR friends,

Colorado’s Education Association President, Kerrie Dallman, welcomed many thousands of delegates at the National Education Association to Denver this summer for its national convention.  http://www.youtube.com/watch?v=Wb_62weV7EE&sns=em

If you wondered how your friends and family in the education profession might be willing to respect the citizens’ Taxpayer’s Bill of Rights, please watch just one minute of the attached video, starting at into 1.30 it.  Realize how that message was then taken back across the nation.  Then consider the TABOR Committee’s mission to inform people in other states of the TABOR benefits.

(In the last two minutes of the video, Dallman talks about the Community Organizers imported and hired into JeffCO since this spring to work against new school board policies.  And to think that the media reported the walk-outs as if they were spontaneous.)

Penn Pfiffner

 

Sep 29

CO Revenue Forecast Shows Continued Growth

state of colorado logo

The latest revenue forecast shows continued growth with the state’s General Fund revenue expected to grow 7.4 percent in FY 2014-15 and 6.4 percent in FY 2015-16.

Projections show an increase of $80.9 million in FY 2014-15, or 0.8 percent higher than compared to the June 2014 forecast. Projections for FY 2015-16 are 1.3 percent, or $131 million higher.

“Colorado’s economy continues to expand at a pace that is among the best in the nation,” the Office of State Planning and Budget reported today. “The state’s concentration of individuals and businesses focused on products that are in high demand in today’s economy continues to feed economic growth.  Colorado also benefits from a high degree of business dynamism, as well as a growing culture for innovation and collaboration among individuals and firms. However, not all parts of the state are experiencing the same degree of economic strength.”

Income taxes from wage withholdings and sales tax collections continue to grow at a solid pace due to Colorado’s economic expansion.

The state’s General Fund reserve now is projected to be $232.6 million above its required amount for FY 2014-15.

The state is projected to end FY 2013-14 with $235.8 million above its required amount based on preliminary information from the State Controller.  All but $25 million of this money, which remains in the General Fund, is allocated to various cash funds, including $135.3 million to the Capital Construction Fund.   Several higher education capital construction projects will proceed as a result.

TABOR revenue is forecast to be $48 million, or just 0.4 percent, below the Referendum C cap in the current fiscal year, which is within the normal range of possible forecast adjustments.  TABOR revenue is forecast to exceed the cap by $133.1 million in FY 2015-16 and $239.4 million in FY 2016-17, meaning that a refund to taxpayers is required under this forecast, unless voters allow the State to retain the revenue.

Though a TABOR refund is projected, the money forecast to be available in the FY 2015-16 General Fund would allow for a 10.5 percent increase in appropriations.  Meanwhile, under current law, as a result of the TABOR refunds in FY 2015-16 and FY 2016-17, SB 09-228 transfers will be reduced by half.

Under this forecast, in FY 2015-16, revenue above the Referendum C cap would be refunded through the State Earned Income Tax Credit to qualified taxpayers and the sales tax refund to all taxpayers.  In FY 2016-17, revenue above the Referendum C cap would be refunded through a temporary income tax rate reduction and the sales tax refund.

Many indicators point to a continued economic expansion. A special set of unique circumstances, however, could result in an economic slowdown.  One risk is less accommodative monetary policy.  Also, current weaker global economic conditions, as well as continued geopolitical tensions, are concerns.  Unexpected events surrounding these issues could have negative implications for the economy and result in revenue collections that are substantially different from this forecast.  It is also important to note that even relatively small changes in the projected growth rate of revenue can materially impact the budget outlook.

http://theprowersjournal.com/2014/09/co-revenue-forecast-shows-continued-growth/

Sep 27

Democracy Requires a Patriotic Education

The Athenians knew it. Jefferson knew it. Somehow we have forgotten: Civic devotion, instilled at school, is essential to a good society.

What is an education for? It is a question seldom investigated thoroughly. The ancient philosophers had little doubt: They lived in a city-state whose success and very existence depended on the willingness of citizens to overcome the human tendency to seek their individual, self-interested goals and to make the sacrifices needed for the community’s well-being. Their idea of education, therefore, was moral and civic, not merely instrumental. They reasoned that if a state or community is to be good, its citizens must be good, so they aimed at an education that would produce virtuous people and good citizens.

Some two thousand years later, from the 16th through the 18th centuries, a different group of philosophers in Italy, England and France introduced a powerful new idea. Their world was dominated by ambitious princes and kings who were rapidly asserting ever greater authority over the lives of their people and trampling on the traditional expectations of individuals and communities. In the philosophers’ view, every human being was naturally endowed with three essential rights: to defend his life, liberty and lawfully acquired property.

The responsibility of the state, therefore, was limited and largely negative: to protect the people from external enemies and not to interfere with the rights of individual citizens. Suspicious of the claims of church and state to inculcate virtue as mere devices to serve the selfish interests of their rulers, most philosophers of the Enlightenment believed that moral and civic instruction was not the business of the state.

Among our country’s founders, none was a more devoted son of the Enlightenment than Thomas Jefferson, yet as he considered the needs of the new democratic republic he had helped to establish, he came to very different conclusions. Like the ancient philosophers, Jefferson regarded education as essential to the establishment and maintenance of a good polity— Plato, in “The Republic,” spends many pages on the nature of the citizens’ education, as does Aristotle in “Politics.” Jefferson regarded a proper educational system as so important that in the epitaph he wrote for himself, he did not mention that he had twice been elected president of the United States but proudly recorded that he was the “Father of the University of Virginia.”

Jefferson was convinced that there needed to be an education for all citizens if they and their new kind of popular government were to flourish. He understood that schools must provide “to every citizen the information he needs for the transaction of his own business; to enable him to calculate for himself, and to express and preserve his ideas, his contracts, and accounts, in writing.”

For Jefferson, though, the most important goals of education were civic and moral. In his “Preamble to the 1779 Virginia Bill for the More General Diffusion of Knowledge” he addresses the need for all students to have a political education through the study of the “forms of government,” political history and foreign affairs. This was not meant to be a “value free” exercise; on the contrary, its purpose was to communicate the special virtues of republican representative democracy, the dangers that threatened it, and the responsibility of its citizens to esteem and protect it. This education was to be a common experience for all citizens, rich and poor, for every one of them had natural rights and powers, and every one had to understand and esteem the institutions, laws and traditions of his country if it was to succeed.

It is striking to notice the similarity between Jefferson’s ideas and those of a leader of the last great democracy prior to Jefferson’s fledgling democracy. In 431 B.C., Pericles of Athens described the character of the great democratic society he wished for his community: A city “governed by the many, not the few,” where in the “matter of public honors each man is preferred not on the basis of his class but of his good reputation and merit. No one, moreover, if he has it in him to do some good for the city, is barred because of poverty or humble origins.”

Both great democratic leaders knew that democracy, properly understood, requires a careful balance between the political and constitutional rights of the individual, where absolute equality is the only acceptable principle, and the other aspects of life, where equality of opportunity and reward on the basis of merit are appropriate. They also agreed on the need for individuals to limit their desires and even to curtail their own rights, when necessary, to make sacrifices in the service of the community without whose protection those rights could not exist. In short, democracy and patriotism were inseparable.

These values have not disappeared, but in our own time they have been severely challenged. With the shock of the 9/11 terror attacks, most Americans reacted by clearly and powerfully supporting their government’s determination to use military force to stop such attacks and to prevent future ones. Most Americans also expressed a new unity, an explicit patriotism and love of their country not seen among us for a very long time.

That is not what we saw and heard from the faculties on most elite campuses in the country, and certainly not from the overwhelming majority of people designated as “intellectuals” who spoke up in public. They offered any and all explanations, so long as they indicated that the attackers were really victims, that the fault really rested with the United States.

As most of us have come to know too well, the terrorists of al Qaeda and other jihadists regard America as “the great Satan” and hate the U.S. not only because its power stands in the way of the achievement of their Islamist vision, but also because its free, open, democratic, tolerant, liberal and prosperous society is a powerful competitor for the allegiance of millions of Muslims around the world. No change of American policy, no retreat from the world, no repentance or increase of modesty can change these things.

Yet many members of the intelligentsia decried the outburst of patriotism that greeted the new assault on America. The critics were exemplified by author Katha Pollitt, who wrote in the Oct. 1, 2001, edition of the Nation about her daughter wanting to fly the American flag outside their window after 9/11. “Definitely not,” Ms. Pollitt replied. “The flag stands for jingoism and vengeance and war.”

Such ideas still have a wide currency, reflecting a serious flaw in American education that should especially concern those of us who take some part in it. The encouragement of patriotism is no longer a part of our public educational system, and the cost of that omission has made itself felt. This would have alarmed and dismayed the founders of our country.

Jefferson meant American education to produce a necessary patriotism. Democracy—of all political systems, because it depends on the participation of its citizens in their own government and because it depends on their own free will to risk their lives in its defense—stands in the greatest need of an education that produces patriotism.

I recognize that I have said something shocking. The past half-century has seen a sharp turn away from what had been traditional attitudes toward the purposes and functions of education. Our schools have retreated from the idea of moral education, except for some attempts at what is called “values clarification,” which is generally a cloak for moral relativism verging on nihilism of the sort that asserts that whatever feels good is good.

Even more vigorously have the schools fled from the idea of encouraging patriotism. In the intellectual climate of our time, the very suggestion brings contemptuous sneers or outrage, depending on the listener’s mood. There is no end of quoting Samuel Johnson’s famous remark that “Patriotism is the last refuge of a scoundrel,” but no recollection of Boswell’s explanation that Johnson “did not mean a real and generous love for our country, but that pretended patriotism which so many, in all ages and countries, have made a cloak for self-interest.”

Many have been the attacks on patriotism for intolerance, arrogance and bellicosity, but that is to equate it with its bloated distortion, chauvinism. My favorite dictionary defines the latter as “militant and boastful devotion to and glorification of one’s country,” but defines a patriot as “one who loves, supports, and defends his country.”

That does not require us to denigrate or attack any other country, nor does it require us to admire our own uncritically. But just as an individual must have an appropriate love of himself if he is to perform well, an appropriate love of his family if he and it are to prosper, so, too, must he love his country if it is to survive. Neither family nor nation can flourish without love, support and defense, so that an individual who has benefited from those institutions not only serves his self-interest but also has a moral responsibility to give them his support.

Thus are assaults on patriotism failures of character. They are made by privileged people who enjoy the full benefits offered by the country they deride and detest, but they lack the basic decency to pay it the allegiance and respect that honor demands. But honor, of course, is also an object of their derision.

Every country requires a high degree of cooperation and unity among its citizens if it is to achieve the internal harmony that every good society requires. Most countries have relied on the common ancestry and traditions of their people as the basis of their unity, but the United States can rely on no such commonality. We are an enormously diverse and varied people, almost all immigrants or the descendants of immigrants. The great strengths provided by this diversity are matched by great dangers. We are always vulnerable to divisions among us that can be exploited to set one group against another and destroy the unity and harmony that have allowed us to flourish.

We live in a time when civic devotion has been undermined and national unity is under attack. The idea of a common American culture, enriched by the diverse elements that compose it but available equally to all, is under assault, and attempts are made to replace it with narrower and politically divisive programs that are certain to set one group of Americans against another.

The answer to these problems and our only hope for the future must lie in education, which philosophers have rightly put at the center of the consideration of justice and the good society. We look to education to solve the pressing current problems of our economic and technological competition with other nations, but we must not neglect the inescapable political, and ethical, effects of education.

We in the academic community have too often engaged in miseducation. If we encourage separatism, we will get separation and the terrible conflict in society it will bring. If we encourage rampant individualism to trample on the need for a community and common citizenship, if we ignore civic education, the forging of a single people, the building of a legitimate patriotism, we will have selfish individuals, heedless of the needs of others, the war of all against all, the reluctance to work toward the common good and to defend our country when defense is needed.

The civic sense that America needs can come only from a common educational effort. In telling the story of the American political experience, we must insist on the honest search for truth; we must permit no comfortable self-deception or evasion, no seeking of scapegoats. The story of this country’s vision of a free, democratic republic and of its struggle to achieve it need not fear the most thorough examination and can proudly stand comparison with that of any other land.

In the long and deadly battle against those who hate Western ideals, and hate America in particular, we must be powerfully armed, morally as well as materially. To sustain us through the worst times we need courage and unity, and these must rest on a justified and informed patriotism.

http://online.wsj.com/articles/donald-kagan-democracy-requires-a-patriotic-education-1411770193?mod=trending_now_1