Colorado voters to decide on TABOR refunds or more school funding
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Before they adjourned, Colorado lawmakers left voters some homework: a ballot measure asking permission to trade tax refunds for more K-12 funding.
Why it matters: The referendum tees up one of Colorado's biggest tax-and-spending fights in years, touching the third rail in state politics: the Taxpayer's Bill of Rights.
Driving the news: Colorado lawmakers sent the measure to the ballot after spending months cutting $1.5 billion in government spending to balance the state's $47 billion budget.
- If approved by voters, the measure could increase the TABOR spending cap by at least $4.6 billion and eliminate more than $1 billion in tax refunds in the next two years, according to legislative fiscal analysts.
How it works: The first 2% of tax revenue collected above the existing TABOR cap would go toward higher teacher pay, smaller class sizes and other school programs.
- Additional surplus would go toward other Democratic priorities, such as early childhood education, child care, health care and higher education.
- TABOR refunds could be eliminated for the near future.
Yes, but: Don't expect an immediate windfall for education. Economic forecasts suggest the state won't collect enough tax dollars to reach the $4.6 billion mark anytime soon.
What they're saying: Still, Democratic lawmakers and education advocates celebrated the passage of Senate Bill 135 in the session's closing days.
- "This is a major victory for Colorado students, educators, and public schools," said Kevin Vick, president of the Colorado Education Association, in a statement.
- "For decades, Colorado's outdated revenue cap has prevented our state from fully investing in the kids and classrooms that make our communities strong."
What's next: Expect a multimillion-dollar campaign featuring teachers unions, business groups, conservative activists and anti-tax organizations battling over the future of TABOR — and who gets Colorado's surplus cash.