What Kind of Colorado Do You Want: We Can Decide

Goals for Today’s Presentation Review the 3 ballot proposals that you will vote on in November Review the impact of the proposals on state and local public services. Describe what to do and where to go for further information on them.

Colorado Today Public investments are stretched to the breaking point Economy and jobs are beginning to recover We are facing three proposals that will further cut essential community services and threaten fragile economic gains

Colorado Budget Shortfalls to Date FY , FY , FY –$4.4 Billion –Likely to increase by $300 million before the end of FY * Amendment related shortfall estimate: –Proposals may accumulate a $5.5 billion annual budget shortfall when fully implemented –State ($2.1 billion) –Local government ($3.4 billion)** *Source: Todd Saliman, Director Colorado OSPB, Colorado School Finance Project Advisory Committee, October 1, 2010, ** Source: Legislative Council, July 8, 2010 Memorandum and Bell Policy Amendment 61 Preliminary Analysis

3 Proposals on 2010 Ballot 1.Prop 101: Slashes local and state support for public services, in particular transportation and K-12 education 2.A60: Overturns prior local elections, cuts local support for schools, charges new taxes on many public services 3.A61: Cripples our economy by restricting common-sense investment in our infrastructure

Proposition State income tax Cut to 4.5% immediately -.1% reductions to 3.5% 2.Motor Vehicle taxes and fees Specific Ownership Taxes on vehicles reduced over four years to $2/new and $1/used (1919 levels) License fees go to $10 flat rate Eliminates state and local taxes on vehicle rentals and leases If you buy a car over four years exempts first $10k on vehicle values from state and local sales tax 3.Telecommunications fees All state and local telecommunications charges eliminated except for 911

Proposition 101 When fully implemented, cuts state General Fund revenues for schools, colleges and universities, health, human services, corrections and other operating budgets by 23% (legislature will determine how to distribute these cuts). Cuts state funding for roads and bridges by 27% from current levels. Local funding cuts will vary by jurisdiction. Cuts general revenues to cities, counties and school districts throughout Colorado by more than $900 million per year.

Proposition 101 The state universal services charge used to subsidize low- income access to telecommunications in rural areas will be reduced by $60 million per year Eliminates the telecommunications relay services charge which raises about $2 million a year to subsidize access to telecommunications for disabled individuals. $250,000 of that is provided to the Reading Services for the Blind Cash Fund Eliminates $6 million in the first year for various state parks and recreation programs and services. Eliminates $1.3 million annually for training and certification of law enforcement officials.

Denver County Examples 2009 Under Prop 101 Denver Public Schools* $22.4 million $317,143 City-County of Denver $12.9 million $182,260 Special districts$2.2 million $31,213 Police-fire pensions:$1.6 million $22,295 Urban flood control$314,798 $4,459 Ownership Taxes Under Prop 101, funding would be cut by 98.6 percent from 2010 to 2014

Denver County Examples Specific Ownership Taxes to School Districts -DPS $395 to $6.00 per student Safety Construction Projects Under FASTER –University Blvd at Hampden – Intersection improvements –Wadsworth at Coalmine – Intersection improvements

Denver County Bridge Repair under FASTER I-70 over Sand Creek SH 88 over RR, Lakewood Gulch I-25 over US 85 I-25 over S. Platte I-70 over US 6 Pecos St. over I-70 I-70 over UP RR Havana over Cherry Creek US 6 over S. Platte US 287 over US 40 US 6 over Bryant St. US 6 over BNSF RR SH 2 over BNSF RR Perry St. over US 6

Amendment 60 Cuts local support for public schools in half by Requires the state to make up the difference out of the General Fund at a cost of $1.6 billion (see Prop 101). Immediately sunsets all local “de-brucing” elections affecting property taxes. (Elections that allow districts to retain revenue over the TABOR Cap) Limits future “de-brucings” to 4 years and future tax increases to 10 years. Requires enterprises and authorities to pay property taxes that may translate to higher fees : CU, DIA, Denver Water, E-470

Amendment 61 Bans the use of any kind of debt financing by the state of Colorado, including: –Certificates of Participation used for roads and buildings –Short-term financing vehicles the Treasurer uses to manage cash flow for the state and local school districts Reduces local government debt financing limits to 10 percent of assessed taxable value of real property 36 school districts, representing almost half of all students statewide, exceed limit and can’t build new schools or repair existing ones –

Amendment 61 City and County of Denver faces an 18 year moratorium on new bond elections (Most school districts face an 8 year moratorium). Local bonded debt must be repaid within 10 years Requires local governments to automatically cut tax rates (equal to the average annual payment) when debts are repaid even if the borrowing was repaid from a source other than taxes.

$5.5 billion annually cut from state and local government revenues when fully implemented 73,000 primary jobs lost – half in the private sector Teachers cut, kids in much larger classes Increased burden on small business and working families Paying now for decades of benefits Unintended consequences? Overview of combined impact

Non-partisan Legislative Council staff projects when fully implemented 99% of state’s operating budget will go to K-12 education - no money for courts, prisons, Medicaid, community colleges, parks, public safety or anything else. Not constitutional – we must fund the court system, prisons, Medicaid This means that all areas of state government, including K-12 education will be cut dramatically severely limiting our ability to invest in public systems that promote strong communities and economic growth. Overview of combined impact

State General Fund Before and After Assuming Full Implementation in Fiscal Year 2011 $7.0 Billion $4.8 Billion

Overview of combined impact: Healthcare If all 3 amendments passed: –Colorado could loose between 9,800 and 11,760 healthcare jobs * –General Fund appropriation to HCPF could be reduced by 57% from current levels if the provisions of the measures were strictly adhered to ** –A 57% reduction would require a cut of $702 million from the HCPF budget or an amount equal to 88% of the Medicaid General Fund budget * Source: Sobanet, Henry, Working Paper on Proposition 101, Amendments 60 and 61, July 8, 2010 ** if K-12 education appropriations are held harmless Source COFPI 60, 61, 101 Fact Sheet July 22, 2010

Overview of combined impact: Healthcare (cont.) The following line items add up to $347 million:* Mental Health ($79 million) Indigent Care ($20 million) “Other Medical Programs” ($59 million) DHS Medicaid-funded programs ($159 million) A35 cash funds to backfill GF**($30 million) *Source: Colorado Fiscal Policy Institute, Fact Sheet: Amendment 60 and 61 and Proposition 101 and Healthcare, July 22, 2010 **Amendment 35 Tobacco tax funds designated for health care services and tobacco education

Overview of combined impact: Healthcare (cont.) Medicaid and CHP+ –FMAP: MOE and loss of at least $535 million matching federal funds* –Reductions in payment to providers –Loss of healthcare eligibility –Increased use of Emergency Room –Greater uncompensated care –Increased costs for the insured –*Source: Colorado Hospital Association Fact Sheet

Overview of combined impact: Healthcare (cont.) Public and non-profit hospitals, districts, and facilities –Amendment 60 and Proposition 101 may reduce operating revenue for hospital districts –Amendment 60 may require Hospitals to pay property taxes –Amendment 61 will create significant obstacles for financing public and non-profit hospital, long term care, and clinic replacement or expansion –Amendment 61 will eliminate financing vehicles for medical equipment and technology upgrades –Amendment 61 creates a disadvantage for public and non-profit facilities versus for profit health care

Denver Post Polling Data October 4, 2010 Summary of Statewide Fiscal and Tax Policy Ballot Issues Ballot Proposal Undecided/Don’t Vote Amendment 60, cuts property tax 42% Amendment 61, limits debt 40% Proposition 101, cuts income, 44% telecom, and auto taxes/fees Source: Denver Post, “Colorado voters down on Obama, several statewide ballot issues”, October 4, 2010

Statewide Editorial Board Opposition Denver Post, Editorial, 2/28/10: “…Prop 101, A60 and A61 might be tempting for some voters. But they would be devastating for Colorado…the handiwork of anti- tax crusader Douglas Bruce and others, would effectively cripple government.” Denver Post, Editorial, 7/7/10 “ Don't be fooled, Colorado. Amendments 60 and 61 and Prop 101 are not smart budget-cutting measures. They're out to cripple Colorado, and should be rejected at the polls Grand Junction Sentinel, Editorial, 11/24/09: “…whether through the courts or at the ballot box, these three measures are government- bashing turkeys that deserve to be cut to pieces like a fat Butterball on the holiday table.” Barry Noreen, Colorado Springs Gazette, 6/20/2010 “ Bruce’s Amendment 61 is just plain wacky… Amendment 61 is the latest insane, mean-spirited attack on Coloradans.

Bi-Partisan Opposition Former Governor Bill Owens: “As a fiscal conservative — I oppose Amendments 60 and 61 and Proposition 101” “All Coloradans — conservatives, moderates and liberals — should vote "no" on these damaging proposals.” Governor Ritter: “Coloradans must unite against three of the most backward-thinking ballot measures this state has ever seen. Proposition 101 and Amendments 60 and 61 would shut down colleges and prisons, increase class sizes, put thousands of teachers out of work, and prevent the repair of unsafe roads and bridges.” Rep Carole Murray (R) District 45: “What these issues have done is flesh out where those of us who are pretty conservative would draw the line, and I would say I draw the line at anarchy Former Senate Minority Leader Josh Penry: “I don’t support any of the initiatives....Those of us who support TABOR want to make clear that those initiatives are just bad public policy.”

Bi-Partisan Opposition The Candidates for Governor: Mayor Hickenlooper opposes 60, 61, and 101 Dan Maes opposes 61 and 101 but supports Amendment 60 Tom Tancredo opposes 61 but supports 60 and 101 Republican Legislators: 2/3 of all republican state legislators have signed a letter opposing all three ballot initiatives

465 Groups Oppose 60, 61 and 101 As of 10/02/10 (A-B only) AARP Action 22 Associated General Contractors of Colorado CH2MHILL Charter School Institute Club 20 Colorado AFL-CIO Colorado Association of Commerce and Industry Colorado Competitive Council Colorado Concern Colorado Corn Growers Association Colorado Dairy Farmers Colorado Education Association Colorado Farm Bureau Colorado High School Activities Association Colorado Rural Electric Association Colorado Space Coalition Denver Metro Chamber of Commerce Economic Development Council of Colorado Flight for Life Grand Junction Area Chamber of Commerce Jefferson Economic Council Lower Arkansas Valley Water Conservancy District Mile High United Way NAIOP - National Association of Industrial and Office Parks Progressive 15 State Board for Community Colleges and Occupational Education Visit Denver Visitor and Convention Bureau 36 Commuting Solutions 9to5, National Association of Working Women - Colorado A+ Denver Adams 12 Five Star Schools Adams County Economic Development (ACED) Adams County School District 14 Advocacy Denver AdvocacyDenver, Inc All Families Deserve a Chance Coalition Alliance Alliance for Sustainable Colorado America Votes - Colorado American Association of University Women (AAUW) Colorado American Cancer Society Cancer Action Network American Federation of Teachers (AFT) - Colorado American Institute of Architects, Colorado Component American Planning Association - Colorado Chapter American Society of Civil Engineers - Southern Colorado Branch American Society of Engineers - Colorado Section American Subcontractors Association of Colorado Applewood Business Association Arapahoe County Board of County Commissioners Arapahoe Library District Ariel Clinical Services Artemis Arts for Colorado Arvada Chamber of Commerce Arvada Economic Development Association Ask-A-Nurse Aspen Chamber Resort Association Aspen City Council Aspen School District Associated Builders and Contractors, Rocky Mountain Chapter Associated General Contractors of Colorado Association of Colorado State Patrol Professionals Aurora Chamber of Commerce Aurora Economic Development Council Aurora Firefighters Local 1290 Aurora High Point at DIA Metropolitan District Aurora Public Schools Autism Society of Colorado Avista Adventist Hospital Avon Town Council Basalt Town Council Beacon Point Metropolitan District Bell Action Network Bell Policy Center Bella Energy Berthoud Board of Trustees Boulder Chamber Boulder City Council Boulder Convention and Visitors Bureau Boulder Economic Council lBoulder Valley School District RE-2 Board of Education Boyd Ponds Metropolitan District 1 Boyd Ponds Metropolitan District 2

What’s Needed Organized groups of committed local leaders to educate their communities about these measures and what is at stake locally Communication about the specific, tangible, local impacts Coordination of resources using local knowledge and statewide understanding Exchange of information so any solutions are informed by what is happening on the ground around Colorado The ability to respond quickly, with comprehensive research and tools to new challenges as they arise

Find Out What’s Happening – Looking Forward Collaborative site – campaign site – Broad based coalition focused on fiscal and constitutional reform - Legislative Council site accessed here – Bluebook and other memos – Proponents site

Data for this presentation provided by: Bell Policy Center Colorado Fiscal Policy Institute Colorado Children’s Campaign Thank you! Rich Jones