Colorado’s economy continues to recover, but constitutional restraints and required spending increases could force more cuts to already-ravaged state services, according to an economic forecast released Thursday by Gov. Bill Owens’ budget office.
Over three years, state taxpayers could see constitutionally mandated refunds of more than $930 million triggered by the Taxpayer’s Bill of Rights (TABOR), while the state would have to cut about $230 million in services.
“For the first time, TABOR has become the problem. Unless Referendum C passes, in fiscal year 2006-07, the state will be in the unenviable position of having to refund $476 million while simultaneously making significant cuts in services,” said Owens spokesman Dan Hopkins.
Under a budget-reform measure hammered out by Owens and Democratic legislative leaders this spring, voters in November will decide whether to use a provision of TABOR to let the state keep more taxpayer money.
Referendum C asks voters to give up about $3.1 billion over five years – or about $426 per average taxpayer – in revenue surplus that TABOR would otherwise send back to taxpayers.
Referendum D gives the state authority to take out essentially what are $2.1 billion in loans to pay for repairs to crumbling roads and bridges, dilapidated schools, and fire and police pensions.
Meanwhile, voters got more specifics about where their money will go if they pass the ballot measure. A list of 57 road projects was finalized Thursday.
Supporters of the measures agree that telling voters where the money will be spent is crucial to their passage.
“One reason this issue will pass is I think people are going to recognize what it means in their communities,” said Katy Atkinson, spokeswoman for the Vote Yes on C & D campaign.
The list of 57 projects is expected to cost about $1.2 billion. Some of the projects include:
Republican John Andrews, a former state Senate president, is an opponent of the ballot measures. He said the state traditionally has taken a pay-as-you- go approach to building roads.
“If C and D pass, we will be making a habit of credit-card government, and that’s a very bad habit to get in to,” he said.
Instead, Andrews said, the state should step into the 21st century and use tolls to finance road building.
Staff writer Chris Frates can be reached at 303-820-1633 or cfrates@denverpost.com.
