Question for Colorado people about TABOR.

[4bucksagallon]

There is a TABOR initiative on the ballot here in Maine this November. My question is how is TABOR working for you? Here in Maine the republicans keep bringing up that TABOR works great in Colorado. I have seen arguments from both sides, but I wonder if people in Colorado have any personal stories for or against TABOR. The TABOR side seems to be ahead but when republicans and libertarians both agree on ANY issue I get nervous. Thanks for any responses.

[GardeningGal]

1. I would not recommend it.

Here are some links that give some arguements, but the best way to summarize is that it worked in periods of growth but not in periods of decline.

http://www.cbpp.org/10-19-05sfp.htm

http://www.ncsl.org/programs/fiscal/taborpts.htm

[Democrats_win]

2. The Ratchet effect

The links provided above mention this, but it should be emphasized how bad this effect is.

http://www.cbpp.org/1-13-05sfp3.htm

--snip
The “Ratchet Effect”: Increasing the Severity of the Population-plus-Inflation Formula

Colorado’s TABOR and many current TEL proposals in other states contain a feature that causes public services to be cut even more than they would under a simple population-growth-plus-inflation formula. This feature is known as the “ratchet effect.” With the ratchet effect, the population growth plus inflation adjustment is applied to the amount of actual expenditures or revenue in the prior year (rather than to the amount of allowable expenditures or revenues). When state budgets grow slowly or fall, as in the recent fiscal crisis, actual spending or revenues are likely to be lower than the level permitted by the formula. If this lower level becomes the new base to which the population growth and inflation adjustment is applied, then the level of public services is permanently ratcheted down.

Consider a hypothetical state with $1 billion in revenues in 2001 and with population growth plus inflation equaling 5 percent annually. With no ratchet effect, by 2005 allowable revenue would be $1.22 billion (reflecting four years of 5 percent growth, compounded). But if actual revenue collections declined in the first year by 5 percent, allowable revenue collections in years thereafter would be calculated from that new, lower base. As a result, by 2005, even if the economy and tax base fully recovered, allowable revenues could not exceed $1.1 billion — a very significant difference of 10 percent.

The ratchet effect typically is not explicit, but rather hidden within the wording of a TABOR proposal. Any TABOR proposal must be carefully scrutinized to determine whether it contains a ratchet effect.

[4bucksagallon]

3. Thanks, I will start reading more at the sites you provided.

[Hawkeye-X]

4. 3 words.

Fuck TABOR period.

The Dems last year had to fight for Resolution C & D which overlooks the TABOR and waives the refunds back to the state instead of the taxpayers, which is was TABOR is designed for when we have a surplus. However, after Republican maladminstration for the last oh, almost eight years, the TABOR has hurt Colorado more than it helped Colorado. As a result, Dems put together a package for the voters to help override TABOR for a period of time which was Resolution C & D (one for schools and other for roads). C passed (it was supported by Bill Owens and Dems, oddly enough) and D failed.

Now we have shitty roads, and T-REX is now done, and on budget, so the congressassholes hsa to bring home more pork for the roads to be fixed.

So, my advice? Read up Douglas Bruce and his idiotic ways of trying to get laws passed. One of which is TABOR.

If I see the asshole on the street, I'd shoot him and call it justifiable homicide.

Hawkeye-X