Colorado’s lawmakers will convene in Denver Wednesday to try and resolve some of the state’s most pressing issues: a better K-12 and higher education system; improved transportation and infrastructure; and increased availability of affordable housing.
Such progress will take major compromise, as again this session Republicans hold sway in the Senate, while Democrats hold power in the House.
Unfortunately an ideological chasm over government spending threatens to derail the hope of significant long-term progress on these issues.
Democrats, led by Gov. John Hickenlooper, have convincingly argued that the state needs additional money. There’s very little wiggle room in the discretionary portion of the state budget — the general fund. Further reducing the general fund is the possibility that, without action, lawmakers will be forced to send taxpayers millions of dollars in refunds under the Taxpayer’s Bill of Rights. And while taxpayer refunds are always welcome, they tend to be anemic, and could arguably be better spent toward these needed priorities.
House Speaker Crisanta Duran, D-Denver, says all options are on the table to resolve the revenue issue. Senate President Kevin Grantham, R-Canon City, while unwilling to consider removing millions of dollars out from under TABOR without voter approval, said nearly everything else is on the table.
We hope they mean it.
Last year we strongly urged Senate Republicans to approve defining the Hospital Provider Fee — essentially a bed tax on hospital visits — as an enterprise fund. The switch would mean no TABOR tax-refunds for the foreseeable future, but more money for things like schools, roads and child welfare services. That strategy was a non-starter for Republicans, who argued it was beyond the scope of lawmakers without voter approval. However, the governor’s office says a legislative fix would be legal, and Republicans have used legislative changes to enterprise funds in the past.
Whether pursuing a legislative fix or voter approval, Colorado needs some kind of rule change moving forward.
Lawmakers could also decide this session to ask voters for new ways to fund transportation.
Grantham said he would be willing to consider a sales tax increase, or other revenue source, to fund a bond package that would provide around $3.5 billion for needed transportation and infrastructure projects. Duran said she would consider a referred measure asking voters for a dedicated revenue stream.
That sounds like fertile ground for a compromise.
Duran is reluctant to consider reforms that would make it more difficult for multi-family homebuyers to bring suit against developers for defects in construction, legislation this board has long hoped to see. But Grantham seems optimistic that a compromise exists on this issue.
There’s no question that high insurance rates for builders are hurting the market for multi-family housing, particularly condominiums, which are often the gateway purchase for first-time homebuyers. We hope Duran is willing to consider reasonable reforms that would both protect consumers while reducing the frequency of frivolous lawsuits that have hampered the market.
Colorado lawmakers balance the budget each year and pass hundreds of bipartisan bills. We also hope they are able to find a middle ground on the more divisive issues this session.
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