When they passed Referendum C, Colorado voters put the budget ball in Gov. Bill Owens’ court first, and he responded this week with new state spending plans.
The budget unveiling was met with some confusion and a few raised eyebrows about transportation spending. But it looks like Owens’ plans adhere to the goals of Referendum C – restoring state services, not new programs.
Referendum C allows the state to keep and spend revenues above normal Taxpayer’s Bill of Rights limits for five years.
Some $440 million of the revenue made available by Referendum C can be used in the current fiscal year, which ends next June 30.
Because that new money pushes state revenue above a legal threshold, it triggers a chain of state laws that tie up much of the money, leaving the governor and lawmakers with discretion over just $94 million, Owens’ budget chief, Henry Sobanet, says.
One of the laws automatically earmarks nearly half the new money – $216 million – for roads, bridges and other transportation needs. So, the big chunk of transportation money in Owens’ budget should not come as a surprise. For the last four years, revenues were so low that the Colorado Department of Transportation’s budget declined by roughly $700 million. “We’re not even making up what was lost,” Sobanet said.
One concern raised this week is that Owens is asking the legislature for another $80 million for transportation. The $14 million remaining would go for such things as higher costs to heat state buildings.
The first thing to remember is that the Joint Budget Committee and the legislature must approve state spending plans, so Owens is not the only player in the game. We look forward to lively and thoughtful debate about how to best spend the extra tax dollars.
Other laws triggered by the new revenue require the state to repay the emergency reserve ($117 million) and return money borrowed from cash funds when revenues collapsed ($13 million).
In the 2006-07 fiscal year, Referendum C monies will be used to fund education and health care, revive the senior citizen property tax exemption, and restore cuts to assorted other programs. Sobanet says that even with a projected $505 million in extra money, there will be no funds for transportation unless revenues come in higher than projected. So this year’s transportation funding might have to last for two years.
Owens and state lawmakers have pledged to spend Referendum C money wisely. For now, we have no reason to doubt them.
