Colorado TABOR Fiscal Spending Cap Adjusted Based on Income Growth Measure (2017)

Colorado TABOR Fiscal Spending Cap Adjusted Based on Income Growth Measure
Election date November 7, 2017
Topic State and local government budgets, spending and finance
Status Not on the ballot
Type State statute	Origin State legislature

The Colorado TABOR Fiscal Spending Cap Adjusted Based on Income Growth Measure was not on the ballot in Colorado as a legislatively referred state statute on November 7, 2017.

This measure would have changed how the cap on state government revenue spending is adjusted. In 1992, voters approved a Taxpayer Bill of Rights, also known as TABOR, which capped the amount of revenue the state is allowed to keep and spend each year. TABOR provided for an annual adjustment of the cap based on changes in the Consumer Price Index for Denver-Boulder and the percentage change in state population.

Instead of adjusting the cap based on inflation and population growth, this measure would have adjusted the spending cap based on the average percentage change in state personal income over the previous five calendar years.

The change would have allowed the state to keep an estimated $133 million in fiscal year 2017-2018 and $209 million in fiscal year 2018-2019 that would be refunded under the current TABOR cap formula. This ballot measure was designed to allocate new revenue from the formula change to healthcare, education, and strategic transportation projects.

Text of measure

Ballot title

The ballot title would have been as follows:

“

Without raising taxes and to fund health care; education, including any capital construction projects related thereto; and to pay for strategic transportation projects included in the department of transportation's strategic transportation project investment program, may the state increase the amount of money that it annually retains and spends under the voter-approved revenue change from 2005 by allowing an annual adjustment to the amount based on the recent average change in Colorado personal income instead of an adjustment for the population change and inflation?

”

Full text

The full text of the measure would have been as follows:

24-77-103.6. Retention of excess state revenues - general fun exempt account - required uses - excess state revenues legislative report - definitions. (2) There is hereby created in the general fund the general fund exempt account, which shall consist except as set forth in Section 24-77-104.1 (3), the general fund exempt account consists of an amount of moneys equal to the amount of state revenues in excess of the limitation on state fiscal year spending that the state retains for a given fiscal year pursuant to this section.  The moneys in the account shall be appropriated or transferred by the general assembly for the following purposes: (6) As used in this section: (a) “Education” means: (I) Public elementary and high school education;  and (II) Higher education. "Colorado personal income" means the total personal income for Colorado, as defined and officially reported by the Bureau of Economic Analysis in the United States Department of Commerce, or any successor index. (a.5) “Education” means: (I) Public elementary and high school education;  and (II) Higher education. (b) (I) “Excess state revenues cap” for a given fiscal year that begins prior to July 1, 2017 means either of the following: (A) If the voters of the state approve a ballot issue to authorize the state to incur multiple-fiscal year obligations at the November 2005 statewide election, an amount that is equal to the highest total state revenues for a fiscal year from the period of the 2005-06 fiscal year through the 2009-10 fiscal year, adjusted each subsequent fiscal year for inflation and the percentage change in state population, plus one hundred million dollars, and adjusting such sum for the qualification or disqualification of enterprises and debt service changes;  or (B) If the voters of the state do not approve a ballot issue to authorize the state to incur multiple-fiscal year obligations at the November 2005 statewide election, an amount that is equal to the highest total state revenues for a fiscal year from the period of the 2005-06 fiscal year through the 2009-10 fiscal year, adjusted each subsequent fiscal year for inflation, the percentage change in state population, the qualification or disqualification of enterprises, and debt service changes. (I.5) "Excess state revenues cap" for a given fiscal year that begins on or after July 1, 2017, means the excess state revenues cap for the prior fiscal year, adjusted by the recent average change in Colorado personal income, the qualification or disqualification of enterprises, and debt service changes. The recent average change in Colorado personal income for a fiscal year is equal to the average percentage change in Colorado personal income from one calendar year to the next for the six prior calendar years, which period ends with the most recently completed calendar year prior to the fiscal year. For the purpose of determining the average recent increase in Colorado personal income that applies for a fiscal year, the estimates of Colorado personal income for the applicable calendar years are those available as of the first day of the fiscal year. 24-77-104.1. Referendum C - election - increase amount to be retained - definition - repeal. (1) At the election held on November 7, 2017, the secretary of state shall submit to the registered electors of the state for their approval or rejection the following ballot issue: "Without raising taxes and to fund health care; education, including any capital construction projects related thereto; and to pay for strategic transportation projects included in the department of transportation's strategic transportation project investment program, may the state increase the amount of money that it annually retains and spends under the voter-approved revenue change from 2005 by allowing an annual adjustment to the amount based on the recent average change in Colorado personal income instead of an adjustment for the population change and inflation?” (2) If a majority of the electors voting on the ballot issue vote "Yes/For", then for all fiscal years beginning on or after July 1, 2017, the state may retain and use all of the state revenues described in the ballot issue that the state otherwise would have been required to refund under section 20 (7)(d) of article X of the state constitution, and these state revenues are a voter-approved revenue change to the limitation on state fiscal year spending. (3) The supplemental general fund exempt account is created in the general fund. The account consists of an amount of money equal to the total amount of state revenues that the state retains for a fiscal year as a result of the voters’ approval of the ballot issue. The general assembly shall appropriate or transfer the money in the account for the purposes identified in the ballot issue. (4) For purposes of section 1-5-407, the ballot issue is a proposition. Section 1-40-106 (3)(d) does not apply to the ballot issue. (5) As used in this section, "Ballot issue" means the question referred to voters in subsection (1) of this section. (6) (a) If a majority of the electors voting on the ballot issue vote "No/Against", then this section is repealed, effective July 1, 2018. (b) if a majority of the electors voting on the ballot issue vote "Yes/For", then this subsection (6) is repealed, effective July 1, 2018. 24-77-104.5. General fund exempt account - appropriations to critical needs fund - specification of uses for health care and education - definitions. (3) (b) As used in section 24-77-103.6(6)(a)(I) section 24-77-103.6 (6), “public elementary and high school education” means preschool through twelfth grade public education. Accordingly, all of the uses set forth in paragraph (a) of this subsection (3) subsection (3)(a) of this section are permitted under section 24-77-103.6(2)(b). The general assembly shall not be required to appropriate or transfer moneys from the account for all of the programs and services set forth in paragraph (a) of this subsection (3) subsection (3)(a) of this section. Effective date. (1) Except as otherwise provided in subsection (2) of this section, this act takes effect upon passage. (2) Section 1 of this act amending section 24-77-103.6, Colorado Revised Statutes, takes effect only if, at the November 2017 statewide election, a majority of voters approve the ballot issue referred in accordance with section 24-77-104.1, Colorado Revised Statutes, created in section 2 of this act. If the voters approve the ballot issue, then section 1 of this act amending section 24-77-103.6, Colorado Revised Statutes, takes effect on January 1, 2018. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.

Support

Arguments

Colorado Rep. Dan Thurlow (R-55) and Sen. Larry Crowder (R-35), the measure's legislative sponsors, wrote an article in The Colorado Independent. The two state legislators stated:

“

Having a constraint on government and letting citizens vote on tax rate increases are still valid goals. What is wrong with TABOR is the measurement. We are using a measure—consumer inflation—which has nothing to do with the Colorado economy. When inflation is low and our economy is good, as it is now, the effect is to ratchet down the amount we spend each year. None of us would do it that way in our personal or business lives. If we are doing well, we invest in education for our children. If our business is doing well, we invest in new people or equipment. We know that you have to invest when times are good. Conversely, when times are bad we tighten our belt. Oddly enough, TABOR does not really force that on the Colorado government. If inflation were high, and our economic growth were low, TABOR would allow for growth higher than our ability to pay. That makes no sense.

”

Arguments

Rep. Kevin Van Winkle (R-43), who voted against the measure in the House, said:

“

The current formula is very logical. How many people are demanding government services? That allows us to increase by population growth. How much more money does it cost to provide those services? That’s inflation.

”

Path to the ballot

See also: Laws governing ballot measures in Colorado

In Colorado, a legislatively referred state statute must be passed by a simple majority vote in each chamber of the state legislature and signed by the governor. Due to the Colorado TABOR, statewide voter approval is required to enact any legislation to increase government revenue at a faster rate than the combined rate of population increase and inflation.

State Rep. Dan Thurlow (R-55) and Sen. Larry Crowder (R-35) introduced the ballot measure into the Colorado State Legislature as House Bill 17-1187 on February 14, 2017. The House of Representatives approved the bill, 39 to 26, on March 9, 2017. On March 20, 2017, the Senate State, Veterans, and Military Affairs Committee voted to postpone the measure indefinitely. The committee's three Republicans voted to postpone the bill, and the two Democrats voted against postponement.

House vote

March 9, 2017

Colorado HB 17-1187 House Vote
Result		Votes	Percentage
a Yes		39	60.00%
No		26	40.00%

Partisan breakdown of House votes
Party Affiliation	Yes	No	Excused	Total
Democrat	37	0	0	37
Republican	2	26	0	28
Total	39	26	0	65

See also

Suggest a link

• 2017 ballot measures
• Colorado 2017 ballot measures
• Colorado Legislature
• Taxpayer Bill of Rights

External links

• House Bill 17-1187