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Ritter OKs bill blowing state budget cap; Dems say tax limits are next target
Colorado Senate News ^ | Wednesday, 03 June 2009

Posted on 06/05/2009 8:52:09 AM PDT by snarkpup

As Colorado's Democrat governor effectively signed away a long-standing policy limiting the growth of the state's budget, a key legislative ally called today for rolling back other restraints on taxing and spending. Incoming Senate Democrat leader John Morse welcomed the enactment of controversial Senate Bill 228--diverting billions of dollars away from transportation projects in coming years--by promising that the fight "is just beginning" to retool the state's other constitutional taxing and spending limits.

That double-punch left Republicans incredulous, and they pointed out that only months ago, Colorado voters soundly rejected a ballot proposal that would have gutted the perennially popular Taxpayer's Bill of Rights, or TABOR, in the state constitution. GOP members also said today's developments point to further tax hikes down the road if Democrats were to succeed in dismantling TABOR and other taxing and spending limits.

"Apparently, they’re not content with the largest property-tax hike in a generation or with a billion dollars in new taxes and fees. They're not even satisfied after repealing decades-old spending limits," Senate Republican leader Josh Penry said of Democrat policies enacted in the past three legislative sessions. "Now, it sounds like they’re planning the mother of all tax increases--amid the mother of all recessions."

Added the Grand Junction lawmaker, "If they think Coloradans want California-style taxing and spending, let the debate begin."

GOP members say SB 228 derails prudent policies that have prevented runaway growth in the operating budget under Republican and Democrat governors alike, and it eliminates the only mechanism in place for investing some of the budget in the state's backlogged highway system.

Penry and legislative Republicans have been warning for months of the ill-effects of scrapping the state's 6 percent cap on year-to-year growth in the operating budget. They've noted that states like California and New York that have no meaningful budget caps in place suffer the consequences when revenue falls in an economic downturn. Both states went on spending sprees when times were good and now have to contend with walloping, multibillion-dollar deficits as plummeting tax revenue can't keep pace with their sky-high spending.

"If governors of both parties like Roy Romer and Bill Owens could function quite well with reasonable growth limits on the state budget, it’s hard to see why this administration cannot," said Senate GOP Whip Nancy Spence, of Centennial. "I cannot think of a worse time to lay the groundwork for higher and higher taxes than during a recession."

Republicans say the measure will dramatically shortchange the state's bottlenecked highways and other backlogged infrastructure projects. While the bill inlcludes a funding formula for transportation, Republicans say it is intended as a sop to critics that actually provides no funding whatsoever for highways in its first four years. After that, the bill would cut a small slice for highways--but only for five years, and only if the economy grows aggressively. Even then, it would fall far short of the funding highways would get if the current formula were left in place.

According to one estimate, doing away with Colorado's current cap would short transportation by well over $300 million as soon as the 2011-12 budget year alone. And if the 6-percent limit and the highway-funding formula had been eliminated just five years ago, it would have cost Colorado's highways upwards of $1 billion by now, Republicans say.

Republicans say any Democrat attempts to eliminate even more taxing and spending restraints are an affront to the taxpaying public, which has refused to go along with most such proposals in the past.

Last fall, Colorado voters decisively defeated Amendment 59 on the statewide ballot; the measure, adopted by ruling Democrats during the 2008 legislature, would have mooted key provisions of TABOR by letting the state government keep excess revenue it otherwise would have to return to taxpayers.

In 2003, voters thrashed--by 77 percent to 22 percent--an attempt to roll back statewide limits on property taxes.

Morse nonetheless vowed today to change public minds.

"This is a fight for the very soul of Colorado, and it's just beginning," he said as he lauded Ritter's support of SB 228. "We are not done."


TOPICS: Business/Economy; Government; News/Current Events; US: Colorado
KEYWORDS: budget; ritter; tabor
I'm not sure whether Colorado is going down the fiscal toilet because of the influx of California-types, or if it's just following along with the rest of the country.
1 posted on 06/05/2009 8:52:09 AM PDT by snarkpup
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To: snarkpup
I spent just enough time working in Denver and watching the behavior of the politicians to cross the state off my list of places to relocate from San Diego. I would be thoroughly pissed if I was currently living in Colorado given this tax development. Fortunately, I'm in Idaho. Idaho is holding the line on taxing and spending. In spite of the good fiscal management in Idaho, there is still a lack of good jobs here. It's likely that I'll have to go to San Diego where my company has physical facilities to support ongoing contracts.
2 posted on 06/05/2009 9:03:58 AM PDT by Myrddin
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To: snarkpup

I moved away from Colorado; this seems to be a continuation of the destruction of what was a wonderful place to live. Very sad.


3 posted on 06/05/2009 9:11:46 AM PDT by greatplains
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To: snarkpup

Evans put the first nail in the TABOR coffin and now the dems have finished the job.


4 posted on 06/05/2009 9:12:45 AM PDT by Carley (OBAMA IS A MALEVOLENT FORCE IN THE WORLD)
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To: snarkpup

Well, I’ll tell ya what we’re going to do.....

1) Write to the Guv & State House & Senate.
2) Actively promote the most competative conservatives for state office.
3) Coloradao Tea Parties will have added “state” flavor.
4) Letters to the Editor, since only libs read the Denver Post.


5 posted on 06/05/2009 9:16:41 AM PDT by G Larry (ObamaCare = "DYING IN LINE!")
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To: snarkpup
I'm not sure whether Colorado is going down the fiscal toilet because of the...

I am sorry to say Colorado is going down the tubes because of turncoat republicans. Hank Brown and Bill Owens campaigned for busting Tabor. Most of the house Repubs will attack a Doug Bruce because they seek good press over small government. Colorado has a few strong conservatives but we are cursed with too many republicans without heart felt convictions. Even in Colorado Springs the Republicans constantly seek to expand the government and punish the county when they don't get their tax increases.

6 posted on 06/05/2009 9:17:48 AM PDT by DaveyB (A government's ability to give is proportionate to their power to take away!)
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To: All; greatplains
Don't listen to the dweebs in the peanut galley.

Colorado is still a great place to live. Just stay away from Denver and Boulder and you'll be fine.

7 posted on 06/05/2009 9:19:08 AM PDT by Reagan Man ("In this present crisis, government is not the solution to our problem; government is the problem.")
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To: snarkpup
Colorado getting more and more californicated ! I saw stickersabout 14 years ago when I moved into the state, "Don't californicate Colorado".

I see it with the types of laws that get passed besides taxes. Auto safety laws are a big thing with liberals like enhanced seatbelt laws. The fine use to be $15 but now $72 and it almost was made primary this year.

The ironic thing, Senator John Morse is a law enforcement executive who is out of touch being a democrat. He needs to be defeated in the next election. Other El Paso county democrats need to be kicked out the door as well. Merrifield and Aupa (sp?).
8 posted on 06/05/2009 9:41:10 AM PDT by CORedneck
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To: DaveyB
>>>>>I am sorry to say Colorado is going down the tubes ...

Bull!

We find that the freest states in the country are New Hampshire, Colorado, and South Dakota, which together achieve a virtual tie for first place. All three states feature low taxes and government spending and middling levels of regulation and paternalism. New York is the least free by a considerable margin, followed by New Jersey, Rhode Island, California, and Maryland. On personal freedom alone, Alaska is the clear winner, while Maryland brings up the rear. As for freedom in the different regions of the country, the Mountain and West North Central regions are the freest overall while the Middle Atlantic lags far behind on both economic and personal freedom. Regression analysis demonstrates that states enjoying more economic and personal freedom tend to attract substantially higher rates of internal net migration. Link

9 posted on 06/05/2009 10:26:52 AM PDT by Reagan Man ("In this present crisis, government is not the solution to our problem; government is the problem.")
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