In looking for ways to fix the state’s tangled fiscal policy, House Speaker Andrew Romanoff has grabbed his scissors and is trying to cut out the knot.
The Denver Democrat said Tuesday that he plans to introduce in the closing weeks of the session a proposed ballot question to repeal the Amendment 23 school-funding measure and to partially gut the Taxpayer’s Bill of Rights. TABOR, as the latter measure is known, restricts state spending and in some years requires money be given back to taxpayers.
Numerous lawmakers and policy wonks say those two constitutional measures have conspired with several other laws to bind the state in a financial straitjacket. If Romanoff’s proposal were to succeed, about the only recognizable thing left from the measures would be the TABOR requirement that voters approve tax increases.
“I realize it’s a big change,” Romanoff said. “If we don’t do anything,” he added, “we’ll be back in the same statutory mess in five years, 10 years. . . . I want this legislature to have a better answer to future legislatures.”
But Romanoff’s plan, which he has discussed with the governor, the state treasurer and several prominent legislators, faces a tough fight. Many lawmakers have tried to fix the constitutional knot before — but with no success.
Romanoff is trying to secure the two-thirds support required in the legislature to put a referred measure on the ballot in the last three weeks of the legislative session. He has yet to formally introduce the measure.
The big change, coupled with the short timeline, has some Republicans, who typically champion TABOR, on edge.
“I don’t think it’s the proper time in the waning days of the session to undo TABOR,” said Rep. Cory Gardner, R-Yuma.
A number of Republicans raised the specter of the recent budget fight, calling Democrats reckless spenders who shouldn’t be trusted to do away with TABOR’s spending limits.
“They have shown no fiscal discipline,” said Sen. Josh Penry, R-Grand Junction. “It’s a tough sell to ask to permanently do away with TABOR spending restrictions in that environment.”
But Romanoff said his plan is fiscally conservative and incorporates Republican ideas.
The plan would end the Amendment 23 requirement for K-12 education funding to increase every year. Romanoff said that in tough economic times, that requirement means education funding “cannibalizes” areas of the budget that don’t have mandatory increases.
In addition to doing away with spending limits and allowing the state to keep all the revenue it receives in a year, the plan would create a protected “savings account” for education funding, Romanoff said.
Romanoff has found support for the plan from Republican Sen. Steve Johnson of Fort Collins. Johnson said the state must do something about its fiscal policy before Referendum C, a temporary timeout from TABOR’s restrictions, ends in 2010.
“I think it’s important to start the discussion,” Johnson said. “This may not be the ultimate, final, perfect answer. But we know Ref. C is ending, and we know we’re going to be in a financial wreck when that happens.”
John Ingold: 303-954-1068 or jingold@denverpost.com
