Colorado Politics

Colorado committee recommends rejecting alcohol, marijuana tax hike to fund mental health care

In a rare move, Colorado’s Capital Development Committee unanimously recommended that another legislative committee reject a bill asking voters to approve higher excise taxes on alcohol and marijuana to fund a new mental health hospital in Aurora.

Sponsored by Rep. Bob Marshall, D-Highlands Ranch, and Sen. Judy Amabile, D-Boulder, House Bill 1301 proposes that all excess funds generated through the tax increase would go toward a new mental health hospital in Aurora. Construction and operation of the hospital would be the top priority for funds collected, with any remaining funds directed to a yet-to-be-constructed long-term civil commitment facility in Mesa County.

Under TABOR, any tax increase must be approved by voters.

Funding for mental health care has been a long-standing issue in Colorado, as several members of the Capital Development Committee attested.

A bipartisan, bicameral committee, the Capital Development Committee is responsible for reviewing funding requests for capital projects across state agencies, most often public colleges and universities. It is extremely rare, if not unprecedented, for the committee to request another committee vote a certain way on a bill.

In a committee hearing on Thursday, Marshall told members his intention with HB 1301 and the corresponding ballot measure was to increase mental health care for the most severe cases, such as those on civil commitment or in need of residential care. Those individuals are at the top of the mental health care “pyramid,” Marshall said.

“This is a dire need that we’ve identified for years, and no one’s ever just pulled the trigger and moved forward,” he said.

According to Marshall, the additional tax revenue would amount to about 3 cents per six-pack of beer, bringing in about $44 million each year.

Colorado has some of the lowest excise taxes on alcohol in the nation, Marshall said, adding that representatives from the alcohol and marijuana industries have told him they would accept a tax increase if it were approved by voters rather than imposed as a fee through an enterprise, which is a proposal outlined in another bill this session.

While committee members agreed that more funding was needed, they expressed concerns about the bill.

Sen. Kyle Mullica, D-Thornton, the committee chair, noted that taxes typically go to a “system,” rather than specific projects, as the bill proposes.

Marshall argued that it was easier for voters to know exactly where their money was going than to say it would go toward mental health in general.

“When we can point to something that’s more concrete, it’s a lot easier for the voters to get their head around that,” he said.

Sen. Nick Hinrichsen, D-Pueblo, agreed with Mullica, saying that he did not want to start a precedent of creating standalone funding sources for capital development projects.

“I absolutely support the goals that we’re trying to get at here, but I have heartburn with the bill itself and the mechanism,” he said.

Rep. Tammy Story, D-Conifer, said she was also concerned about the funding’s longevity, especially since alcohol consumption is decreasing nationwide.

“I just don’t feel like that’s necessarily a stable or appropriate way to fund this structure of a mental health facility and the ongoing maintenance in perpetuity.”

Committee members voted 5-0 to submit a letter to the House Health and Human Services Committee, which is scheduled to hear testimony on the bill on March 18.

Committee Chair Rep. Lindsay Gilchrist, D-Denver, said she looked forward to hearing the bill in committee.

“I think this is a critically important issue we should address in Colorado,” she told Colorado Politics. “We desperately need more appropriate placements for individuals experiencing acute mental illness. I think Rep. Marshall is bringing forward a creative solution that has the potential to help the problem.”


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