Think tanks hurting Colorado
Title: “Ivory Tower Bunch”
Sponsor: Vote Yes on C&D
Type: Radio ads
The message: The opponents of Referendums C and D, who are high-paid think-tank employees, “sit around all day thinking up ways to make things worse for Colorado” by suggesting higher tuition prices, toll roads and the release of convicted drug dealers from prison.
Fact: Two opponents of the budget-reform referendums work for conservative think tanks. Jon Caldara runs the Independence Institute, which has run ads calling the referendums a tax increase. Caldara was paid $81,563 in 2002, according to a recent federal tax report. Former Republican state Senate President John Andrews works for the Claremont Institute.
The ad calls the organizations “taxpayer-subsidized think tanks.” The Independence Institute does not accept government grants or funding. However, it is a tax-exempt organization, and donations are tax-deductible.
Opponents don’t want to “stop skyrocketing tuition,” the ad says but “raise it even higher.” Andrews has said “higher education is a remarkable bargain for affluent Colorado families” and suggested raising tuition for higher-income families.
Opponents don’t want to fix the state’s roads but would rather turn them into toll roads, the ad says. Andrews has suggested paying for new roads by tolling instead of taking out loans.
The ad’s last claim suggests that opponents want to cut the state’s budget “by releasing convicted drug dealers from prison.” A report Caldara presented to lawmakers this year suggested halving the sentence ranges for nonviolent drug offenses and dropping use and possession charges from a felonies to misdemeanors.
The ad’s assertion that the referendums do not raise taxes is true insofar as the measures do not increase the state’s tax rate.
However, the ballot questions do ask taxpayers to give up money that would be refunded to them under the Taxpayer’s Bill of Rights.
Democrats love a tax hike
Title: “Ray and Debbie, Proud Democrats for C & D”
Sponsor: Backbone Issue Committee: chairman, former state Senate President John Andrews
Type: Radio ads
The message: A fictional conversation between two Democratic characters, “Ray Revenue” and “Debbie Debt.” The ad is a satirical look at the budget-reform measures. The two characters have a conversation with lines including: “As Democrats, we believe Coloradans should be paying more taxes.”
Fact: The ad repeatedly refers to Referendum C as a tax increase. Referendum C does not raise the tax rate. It does, however, ask voters to give up money that would otherwise be refunded to taxpayers.
The claim that the Democratic Party “officially endorsed” Referendum C is true. The party executive committee backed Referendums C and D on July 9. However, prominent Republicans, including Gov. Bill Owens, have also endorsed the measures.
The ad puts the cost of Referendum C at $3,000 for the average family over five years. That figure is calculated by dividing the measure’s $3.6 billion estimated cost by the state’s 4.6 million residents and multiplying that number by four – the number of people in an average family.
However, not all of the $3.6 billion will be refunded directly to taxpayers if Referendum C fails. Much of that money would fund special tax breaks for items such as child care, capital gains and business property. Government estimates show that after those credits are paid, a taxpayer who doesn’t qualify for any special tax credit will be giving up about $500.
Democratic legislators did, as the ad claims, unanimously vote to put Referendum C on the ballot.
The ad also claims that Rocky Mountain News columnist Mike Littwin said, “If Democrats pass the tax increase this year, they’ll probably control the election for governor and legislature next year.” In a May 10 column, Littwin wrote, “Of course, if Referendum C passes, it helps the Democrats in the 2006 legislative elections and possibly in the gubernatorial election, too.”
