Proponents of three anti-revenue initiatives in Colorado, known colloquially as the ‘three blind mice,’ argue that Colorado citizens are over taxed and that state government is inherently wasteful. They make these claims even though Colorado ranks 46th lowest in combined state and local taxes.

Colorado revenues will take big hit with three initiatives
The three initiatives attack state revenues, already low from the recession and other constitutional amendments, in novel and imaginative ways.

• Proposition 101 will cut $2+ billion in car fees, income tax and phone bill rates. The vehicle ownership fee will plummet to $2, cutting funds directly out of school budgets.
• Amendment 60 will cut local school property taxes by 50%; the state will have no money to backfill the loss. The amendment will also override previous local elections in which citizens voted to exempt themselves from the Taxpayer Bill of Rights (TABOR) effects. Most inventive, citizens will be able to run elections to reduce their mill levy.
• Amendment 61 will prohibit the state from using any debt for any reason. All capital expenses will have to be paid with cash, upfront. School districts that borrow from the state at 0% interest to cover payroll in the months when property tax collections are low will be prohibited from doing so. The school year in those districts would have to run from March to November when property tax dollars are highest. Winter will be the new summer.  (see Colorado Blue Book on Amendments and Propositions)

Great Futures Campaign v. Doug Bruce's anti-tax team
The Great Futures Campaign, a coalition of community groups led by Great Education Colorado, has decided to take the fight to the streets, and to Doug Bruce's anti-tax movement. Great Futures believes that the three initiatives will decimate k-12 public education and public higher education. Public schools will become overcrowded and higher ed will become unaffordable.

Public school funding tanks since 1988
Colorado’s per student funding has dropped steadily in comparison to other states since 1988. According to the National Center for Education Statistics, Colorado was $1397 below the national average in per-student funding in 2007, before the recession. The Colorado legislature gouged out $354 million in prek-12 cuts, or $400 to $500 per student, in its 2010-11 budget. 2011-12 looks no better, and may be worse.

Colorado higher ed funding 48th in the country
The legislature now allows state colleges to increase their tuition up to 9% per year to offset the state’s 48th ranking in per capita spending, which has plummeted to $159/year. Neighboring state Wyoming spends $709 per capita, New Mexico $581 per capita, Nebraska $404 per capita, Kansas $360 per capita, and Utah $296 per capita (State Higher Education Executive Officers, SHEEO). Even Mississippi substantially exceeds Colorado’s spending at $372 per capita.

Will it be cheap car registration or very high college tuition for CO?
Voters face a huge choice in 2010. If the initiatives pass, the state will not be able to construct any new buildings or put down a new highway or improve bridges and roads using its borrowing powers. School districts will not be able to do capital improvements without cash on hand. There will be no more physical improvements to the University of Colorado medical facility and no money for more construction at any state college or university.

On the other hand, vehicle registration will be really cheap and Colorado will have no new debt.

This post was published on August 18, 2010. Permalink »