It seems that a letter to the editor by Arn McConnell, Co-Chairman of the Mesa County Democrats, has set off a fire storm. McConnell took umbrage with Kelly Sloan’s blind support of TABOR, and pointed out that Kelly Sloan, as a representative of the Koch sucking American’s for Prosperity might not have a clear understanding of what prosperity means to an American. In the printed version of the Sentinel today there is a letter denouncing Arn as a tax and spend liberal, and there is one waiting in the wings in the E-mail version. This is all about TABOR and ideology, not common sense.

The history of TABOR is fascinating if one is a political junkie. It was originally the dream of Douglas Bruce, slum-lord. Bruce didn’t like having to pay property taxes on his run-down properties, or at least that is my theory. So he kept talking and talking until voters in Colorado agreed that people should vote on any increase in taxes. But TABOR goes farther than requiring a vote on increases in taxes. It also limits spending to a formula based on things like the rate of inflation and population growth in the state. Because of this formula there is a “ratchet” effect when there is any slowdown of the economy.

Douglas Bruce, darling of the taxes-are-a-theft-of-my-money sect, is a pretty slimy character. He allegedly sponsored the evil three tax initiatives that were soundly defeated last November. He failed to pay any attention to campaign finance laws while circulating petitions to get the measures on the ballot, and then spent months hiding from people wanting to see him in court to explain himself. Bruce may also be the only state legislator to be censured by congress in the history of the state. He was censured for his bad behavior aimed at a reporter, while waiting to be sworn in as a legislator. And he’s been indicted for not paying taxes. It is amazing that this guy is anybody’s idea of a hero.

The economic history is even more fascinating. Colorado’s TABOR was used as an example of what not to do when other states were considering enacting similar bills. In every other state that tried to pass TABOR, the initiative failed—because voters there saw a post-TABOR Colorado. Just one of the more egregious consequences of TABOR is the race to the bottom when it comes to higher education in Colorado. Or maybe I should say the race to elites-only in our colleges and universities. If you cannot afford to pay private school tuition or be willing to spend the rest of your natural life paying student loans, you need not apply to a Colorado University. You can just go to work flipping hamburgers or try dumpster diving for aluminum cans to support yourself.

Arn McConnell is right. There is no prosperity coming from Americans for Prosperity, unless you are a Koch Brother. And TABOR is destroying Colorado’s university system.

Homework:

CBPP Research on TABOR

Douglas Bruce Indicted

Bruce Illegally Practicing Law?

Rollie Heath Wants TABOR Vote on Taxes for Schools

Rollie Heath Speaks Out About Colorado Budgets

Support Our Schools For a Bright Colorado

Rumors About the Heath Plan

Colorado tax payers could be asked that question on a ballot in November if Senator Rollie Heath gets his way. This week he launched a petition drive to ask Coloradans to agree to increase their sales and income taxes briefly—from January 2012 until December 2014. The increase in taxes would be earmarked for K-12 and higher education.

Governor Ritter appointed a commission to come up with a strategic plan for Colorado’s education. The bi-partisan commission came up with several recommendations, in a report released in f2010. The theme running throughout their report (linked below) is that the system is broken and it needs to be fixed. Colorado has one of the highest achievement gaps in the nation. Increasingly the burden of funding higher education is falling on the shoulders of kids and their families. Our in-state tuition at state schools now rivals tuition at private schools. By 2035 70% of the jobs in Colorado will require a higher education.

Call me a tax and spend liberal, if you must, but it is time to get serious about school funding. If this ballot initiative does nothing other than getting the conversation started, it is a major achievement.

Homework:

Strategic Plan for Higher Education in Colorado

Senator Rollie Heath--Our Kids Can't Wait

For the past several years lawmakers in Denver have grappled with how to balance Colorado’s budget. We’ve comforted ourselves thinking that this was a short term problem caused by the trickle-down effect of high unemployment. Unemployed workers don’t pay income taxes (actually, that’s a myth, but is a subject for another day) and they don’t buy anything they don’t need to buy, so sales tax revenues decrease. State revenues decrease in any economic downturn. At the same time, applications for things like unemployment benefits and food stamps and children’s health insurance go up, causing the state’s expenses to go up. Since the budget has to be balanced, spending must be cut. When employment goes up sunny days are here again.

Except, the University of Denver blew a hole in that scenario with a report released last week. They called it a “budget tsunami.” Several foundations came up with the money to fund a study of the state’s financial system, which was mandated by the legislature in 2010. The University’s Center for Colorado’s Economic Future reported that there is a problem with how Colorado’s government is organized that will cause budget short-falls long after any economic recovery.

The modeling done by DU predicted that by 2025 Medicaid expenditures will triple and K-12 education expenses will almost double. But General Fund revenues will only increase 86%. Let’s see, a 300% increase in one of the three largest state programs, a 200% increase in another, and only an 86% increase in revenues. It doesn’t take a rocket scientist to see that the numbers don’t add up.

Yesterday one Democratic legislator decided to do something about the structural problems that would cripple education in Colorado. He knows that without a fix Colorado could easily become the only state in the nation with no public university system. Education is an economic driver, so without a strong university system, Colorado’s economy would be trickled upon. In fact, that was the subject of another study released in late 2010 by a commission appointed by Ritter. In a report titled Colorado Must Decide, an increase in taxes to fund higher education was recommended. Yesterday Rollie Heath, a Democrat representing the district housing the University of Colorado, introduced a bill that would allow voters to decide if they want to fund a university system. As a former corporate executive, my guess is that Rollie Heath understands what business needs and will support. The bill may die, because neither party sent cheerleaders to the announcement of the bill, and Governor Hickenlooper was cool to the idea, but it is what is needed if Colorado’s higher education system is going to survive and thrive. I hope legislators let Colorado’s voters decide.

Homework

Story at University of Denver's Website

Economic Reports at DU's website

Study on Colorado's Higher Education Funding

Rollie Heath Taking Tax Hike to Voters