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The Denver Post Posted: 10/11/2009 01:00:00 AM MDT
If you think Colorado's budget situation is frustrating and grim now, just wait.
The state of Colorado currently has a revenue problem. With a down economy, tax revenues have plunged and state lawmakers and Gov. Bill Ritter are forced to cut programs, offer early parole for prisoners and furlough and lay off workers.
But in a few years, after the economy bounces back, the state will have a host of other problems too, especially if inflation is high.
Referendum C, a five-year timeout from the Taxpayer's Bill of Rights revenue restrictions, expires next year. But Amendment 23, which requires education spending to increase by the rate of inflation, continues.
So it's conceivable that, within a few years, even though revenues will be up, the state will be handing out refunds to taxpayers while cutting higher education, prisons and social programs to pay for increases in K-12 education. If inflation is flat, K-12 won't be a problem, but even with Referendum C, Colorado hasn't been able to properly fund higher education or transportation or a host of key government services. Without Ref C, it would become even harder to fund those items.
Colorado's conflicting budget constraints must be fixed.
And it's imperative to start those discussions now, which is why we were glad to see the formation of Colorado Reform Roundtable, a wide swath of 10 organizations representing business, labor and nonprofit groups. It has the look of the coalition that helped pass Referendum C in 2005.
The coalition is trying to find long-term fiscal solutions, which could include ballot measures in 2011 to reform TABOR and the citizen-initiative process. The group also could be immensely helpful in identifying key legislators who could begin to hammer out a bipartisan solution.
But there are some risks.
If the coalition were to unveil a plan next year that undercuts TABOR in any way — and at some point, you have to if you want to truly reform the budget process — it will become a political hot potato in a gubernatorial election year.
Not only could it negatively impact Gov. Bill Ritter, it could ultimately hurt his Republican challenger.
If it undercuts TABOR, the two leading GOP candidates likely would oppose it to win their party's primary. However, they may want to back some sort of change to TABOR, like Republican Gov. Bill Owens did with Referendum C, should they win election.
It would be far more palatable to be governor of a state that was not only allowed to keep all of the money it already collects, but also has some budget flexibility.
There's a long road ahead, but we think it's positive that some leaders are willing to start walking it. people on COLORADO HAVE SUSPENDED TABOR FOR FIVE YEARS-THE CITIZENS ARE TRYING TO OVERTURN TABOR TO GET RID OF IT-THE PITFALLS ARE ENORMOUS! VOTE NO ON MAINE TABOR!
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