Fields: Governor Hickenlooper, here’s our answer
Amid Gov. John Hickenlooper’s flurry of activity to siphon funds from the hospital provider “fee” in order to feed a larger general fund, we’ve stood firm. Why? Because enterprising this fund would be an end run around our Taxpayer Bill of Rights and deny Coloradans the tax refunds we deserve to put back in our pockets.TABOR is a state constitutional amendment protecting Colorado taxpayers against unnecessary tax increases and runaway government spending. First, state tax increases must be put to the voters, which we have voted down by huge margins in recent years. And second, the state must issue tax refunds when total revenues for a given year exceed inflation and population growth. Thanks to this provision, Coloradans are set to recoup $154 million of our hard-earned money as a tax refund this year, with even more to come in years ahead.
When the governor found out that our activists were against his strategy to circumvent TABOR, he suggested that we give him some ideas on other ways to increase state revenues. Well, Gov. Hickenlooper, we reject the premise of this challenge and instead suggest that the state tighten its belt.
Here’s how. Start spending our money more wisely and efficiently. We already pay plenty of money to the government. In fact, revenues from taxes and fees have grown 43 percent in recent years — from $8.6 billion in 2010 to a projected $12.3 billion last year.
Revenues aren’t the problem. The problem, as Colorado Senate President Bill Cadman wisely points out, is Colorado lawmakers’ “spending addiction.” State government spending grew 38 percent faster in 2014 than it did throughout the 1990s, according to the Independence Institute.
And it’s not just how much money lawmakers spend, but also where which causes budgetary problems.
The expansion of Medicaid under the Affordable Care Act stands out as an example. Colorado’s state Medicaid spending and related programs grew 64 percent between 2013 and 2015. That includes our notoriously costly state insurance exchange, Colorado Connect, currently running a $13.3 million deficit. In fact, Medicaid now takes up over 30 percent of general fund spending. That leaves increasingly less money to spend on other needs.
Another example is the cost incurred by our bloated state pension system. Colorado’s Public Employees Retirement Association has $23 billion in unfunded liabilities — promises we have no current means of paying for. In an attempt to prop up this failed pension system, schools are forced to pay a rate of nearly 20 percent into PERA — meaning less education money actually gets into the classroom. Reforming PERA’s crisis–in–waiting is essential to protecting Colorado’s economy and fiscal stability.
In addition, the Independence Institute has identified numerous other reforms that legislators could enact, without changing the state constitution, which could save the state hundreds of millions of dollars.
No one ever said making these tough budget decisions would be easy, but circumventing our Taxpayer Bill of Rights and taking more money out of every Coloradan’s pocket is inexcusable.
When Gov. Hickenlooper was asked why his proposal wasn’t being sent to the people for a vote as required by TABOR, he told the Denver Post he thinks it “wouldn’t win approval” because Coloradans “don’t want to give any more money, in any way, to government.” He added, “I don’t think that necessarily means that’s the best thing for the state.”
Well, we happen to trust Coloradans to know if it is prudent and necessary to send more of their hard-earned money to fund expanded government programs. The governor should too.
Michael Fields is the state director of Americans for Prosperity-Colorado.
This article has been corrected from an earlier version, which misstated how much schools are required to pay into PERA.

