Colorado taxpayers could lose up to $37.5 billion in TABOR refunds under proposed ballot measure

The Colorado State Senate gave initial approval Friday to a proposed ballot measure that would eliminate billions of dollars in refunds under the Taxpayer Bill of Rights, or TABOR.

State Sens. Kathy Kipp and Jeff Bridges are sponsoring a measure that state analysts found would allow the state to keep up to $37.5 billion more in tax revenue over the next ten years, with $9 billion going to K-12 education and the other $28.5 billion to The Children's Fund.

State Sen. Barb Kirkmeyer calls it a slush fund.

She said, "I wanted to change it to 'Government Helping Themselves to Your Taxpayer Refund Check Forever and Putting It Into Their Pocket,' but that was a little too long."

She settled on the 'Government Waste Fund,' noting the measure doesn't detail how the $28.5 billion would be spent.

Bridges says he's bringing a separate bill that will do that.

"These are funds used that will be used solely to the benefit of kids, could be K-12, could be pre-k," he explained.

State Sen. Byron Pelton says sponsors are also misleading voters regarding the $9 billion for schools, saying it could only be spent on certain things like lower class sizes and teacher pay, when Pelton says that's not what the bill says.

"We're not being honest with the voters with this. Details do matter," said Pelton.

Kirkmeyer says sponsors are being disingenuous, stating, "Let's be clear. Let's stop gaslighting the taxpayers and teachers, for that matter." 

Bridges agreed to change the proposal's language, saying, "If you feel better if I put an 'only' in there, I'll put an 'only' in there."  

His amendment clarifies that the $9 billion can be spent only on teacher pay, teacher retention, smaller class sizes, and education in the trades.

State Sen. John Carson noted that it's money that would otherwise be refunded to taxpayers: "This will be by far the largest tax increase in the history of Colorado."

"It's enough to turn your eyeballs back in your head," said State Sen. Larry Liston.  

Bridges says it's tax revenue the state already collects but can't spend due to TABOR, which caps the amount of money the state can keep.

"This is not a tax increase," he asserted.

Kirkmeyer disagreed, stating, "We all know when you increase the cap, you're increasing taxes."

State analysis shows every taxpayer will lose an estimated $7,381 in TABOR refunds.

"I don't think our citizens are asking too much when they ask for us to tell the truth," said State Sen. Lisa Frizell. 

In addition to $9 billion over the next ten years, schools would receive $1.8 billion every year after that.  Analysts say about a third of it will go to Denver, Aurora, Jeffco, and Adams 12.

The measure passed the Senate on a voice vote. The recorded vote will likely take place next week, then the bill heads to the House.

If it passes, it will be on the November ballot.