BA – 02 – 3-TABOR Formula, Annual Adjustment of

WHEREAS the General Assembly has the authority to modify its interpretation of the Taxpayer’s Bill of Rights (TABOR) Amendment in order to preserve long term funding for higher education and transportation construction projects; and

WHEREAS the TABOR Amendment specifically calls for the state to adjust the spending limit at the end of each decade to reflect actual population; and

WHEREAS the U.S. Census Bureau undercounted Colorado’s population in the 1990s by 178,000; and

WHEREAS the original plan by state leaders to make a 4-percent adjustment fiscal year 02, on top of inflation plus actual population growth, which doubles the allowable growth rate and assumes that the Colorado economy will match it, will not work given the sharp decline in Colorado revenue; and

WHEREAS the result of the current proposal is that future budgets will never reflect the revenue generated by the actual population; and

WHEREAS spreading the population adjustment over several years (as it developed), so that allowable TABOR revenues can grow over time to match our population growth; and

WHEREAS the Attorney General’s office believes that this interpretation of TABOR is legal, that TABOR intended to allow for growth to pay for itself and specifically calls for an adjustment to be made at the end of each decade to account for growth;

NOW THEREFORE BE IT RESOLVED that CLUB 20 supports spreading the population adjustment over several years, so that allowable TABOR revenues can grow over time to match our population, thus providing the state with the funds it is entitled to under TABOR.

 

Adopted March 8, 2002