There are three ballot measures that have received more than a little attention: Amendment 60, Amendment 61, and Proposition 101. They are what Grover Norquist was praying for when he said that government should be so small that it could be drowned in a bathtub. The question is do you really want a dead government?There is an old saying, “If it looks too good to be true, it probably is.” These ballot initiatives look great on the surface to the average consumer. Taxes on real estate go down. Who doesn’t want to pay less in taxes? But the accounting formula for taxes has two sides: revenue and expenses. Colorado has a requirement that its budget be balanced. These three amendments would reduce revenue to cities, counties, and the state. In order to balance the budget, then, services provided by local and state government must also decline.Advocates for the initiatives say that nobody needs to worry about schools because the amendments require the state to backfill any lost local revenue. Put another way, if property taxes go down locally, the state will be required to make up the difference. Looks great on the surface, but what the non-partisan arm of the state government says will happen is 99% of Colorado’s budget will go toward filling that gap.That means that other state programs will lose all but a tiny fraction of their existing budgets. Is that the Colorado you want to live in? Do you want a state with no money to repair roads, or help with the end-of-life expenses of the elderly, or no highway patrol to get traffic on the interstate moving after a multi-car pile-up, or no rig inspections to make sure that our water is protected, or no hunting because there is nobody to issue hunting and fishing licenses?Business does not want to live in a state like that. That’s why Coloradans for Responsible Reform has raised over $5-million from citizens and businesses to defeat these three initiatives. Just a few names to give you a flavor of how diverse the opposition is: Colorado Association of Home builders ($15,000), Colorado Education Association ($450,000), Denver Metro Building Owners and Managers Association ($2,500), GH Phipps Construction Companies ($10,000), M.D.C. Holdings, Inc. ($75,000), National Education Association ($400,000), The Colorado Bankers Association ($100,000), Xcel Energy ($50,000), Colorado Bar Association ($75,000), Liberty Media Corporation ($100,000), The Colorado Health Foundation ($175,000), Colorado Ski Country USA, Inc. ($20,000), Service Employees International Union ($100,000), Johnson Controls ($75,000), Labor Management Committee ($75,000), Colorado Hospital Association ($55,000), Wells Fargo Bank, N.A. ($100,000),Visit Denver the Convention and Visitors Bureau ($25,000),Colorado Association of Realtors ($150,000.) I pulled that list from the two most recent campaign finance reports, there are more reports filed, and this is not a complete list—just some highlights.“The right answer is to kill these three (ballot measures) and engage in meaningful talk about how we make government more efficient. These three measures are the closest thing to anarchy our state has ever seen.” Reeves Brown, Executive Director of Club 20, as quoted by the Grand Junction Daily Sentinel.Homework:Grand Junction Budget WoesThe Truth About 60, 61, and 101Campaign Finance Report for Coloradans for Responsible Reform
Yesterday I attended a “train the trainer” session devoted to talking about Amendment 60, Amendment 61, and Proposition 101. If passed, these three amendments could change everything about the way that Colorado looks. They are so bad, in fact, that the coalition of organizations against them is unprecedented. In the room yesterday were representatives of Club 20, local churches, Mesa County Democrats, bankers.On the surface, they look good because they would reduce taxes that households have to pay. What you need to think about, however, is what new fees you would be paying instead of taxes.Here’s a riddle for you. If your personal budget decreased by $21,000, but you were now required to pay $16,000 to educate your kids, how would you do it? That is what the state is facing on a much larger scale. The state is facing cuts of $2.1 billion in revenue, at the same time it would be required to increase K-12 education funding by $1.6 billion. Because of Amendment 23 requirements to fund education at increasing levels, 99% of Colorado’s general fund budget would go to education.So, if we are spending almost all of our money on education, how are we going to pay for courts and the highway patrol and state highways and prisons and Medicare and Medicaid and state parks and bridges and business recruitment? We’ll have to cut them out of the budget, because there won’t be any money left for them. One provision requires all government enterprises and authorities to start paying taxes on their property, while decreasing the property taxes of individuals. Sure it looks good, but the result would be that Mesa State College would begin to pay taxes on the property it owns, resulting in huge tuition hikes, increases in other fees, or eliminating programs—maybe the popular nurse’s programs. It would mean that only the very wealthy could go to college, and the rest of us would never have access to an affordable college education.Would the same be true if the Colorado Division of Wildlife suddenly had to pay taxes on property it manages? Could we take a bike ride on the Kokopelli Trail without paying a fee? And how large would that fee be? How about a speeding ticket? Oh wait, there wouldn’t be any cops, so no problem with the speeding. How about crack dealers? No problem, no courthouse, no public defender, no jail. Of course they could always pay for their own punishment by working. At what? Dealing crack, of course.These bills are INSANE. Homework:Denver Business Journal Analysis of Three Anti-Tax InitiativesThree Anti-Tax Measures Could Cost State $2.1 BillionNon-Partisan Legislative Staff Report on Impact of Three Budget IssuesAnalysis of Impact of Letting Bush Tax Cuts ExpireCBO Analysis of President's Budget
Schools must not teach basic finance anymore. There are three ballot issues this year that would make it impossible to govern efficiently. For some reason, people are confusing deficit spending with debt that is planned. Deficit spending is when a government does not balance its budget, and then spends more than it generates. Just as families budget for autos and mortgages, governments budget for payments on things like highway and school bonds. It isn’t deficit spending to make payments on the acquisition of long term assets like bridges.Colorado can’t deficit-spend anyway. Colorado is required, by law, to balance its budget. That is why there has been more than $2.5 billion in spending cuts over the past two years. That is why there is another $1 billion in spending cuts to be found by the next session of congress.Colorado ran out of money for unemployment benefits this year and borrowed from the federal government, as required by federal law, in order to continue support for unemployed workers. Colorado also borrows money to build and maintain roads and bridges. Amendment 61 would require that all borrowing stop and existing loans be immediately paid. Imagine if you were required to pay your mortgage off tomorrow…You can access the actual text of Amendment 61 at the second link below. For your convenience, I’ve copied a few of the requirements here:· The state … shall not borrow, directly or indirectly, money or other items of value for any reason or period of time. This ban covers any loan …· All current borrowing shall be paid. (When? Today? Tomorrow? Next week?)· Conflicting laws, rulings, and practices are repealed. (This section would mean that the state could not borrow from the federal unemployment fund when it ran out of money as it did this year. So, unemployed workers need to turn to a life of crime in order to survive? But wait, we can’t build any new prisons—or pay for the ones we have, so that won’t work. Do the authors of this bill think they will simply disappear? )Amendment 60 can be accessed at the third link below. Some provisions:· Electors may vote on property taxes where they own real property. (So does this mean I could be registered to vote in South Dakota AND Colorado? I wonder what South Dakota thinks about this? What happened to one person, one vote?)Proposition 101 is in the fourth link:
- Require all state and local taxes to cease on vehicle rentals and leases.
- Require that all registration, license, and title changes combined total $10 yearly per vehicle. (This fee was increased during the last legislative session in order to repair 128 bridges that are about to fall down.)
- Set the 2011 income tax rate at 4.5% percent and require later rates to decrease to 3.5% (You think $3.5 billion in cuts have been hard, wait until you see what this would do to Colorado…)
HomeworkAmendment 61 Would Cripple GovernmentText and Analysis of Amendment 61Text and Analysis of Amendment 60Text and Analysis of Proposition 101
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