Coloradans will likely vote on bill this fall that could change how TABOR impacts education funding

DENVER — A bill that would change TABOR requirements in an effort to increase education funding passed a third reading in the Colorado State Senate April 27.

The bill, as it is written, would appear on the ballot and require voter approval in this fall's midterm election. 

Voters approved TABOR, a constitutional amendment that stands for the Taxpayer Bill of Rights, in 1992, limiting the amount of revenue the state of Colorado could retain and spend. The amendment also requires voter approval for any tax increases.

“TABOR is so limiting and it's so restrictive and it's not keeping up with the funding challenges that we have in our state,” said Denille LePlatt, executive director of the Colorado Rural Schools Alliance.

“We need to make sure that our state has enough money to do its business and not have all of these competing priorities where we're making these really difficult decisions each year around the state budget.”

The Democrat-sponsored bill, SB26-135, would raise the current TABOR limit so the state can keep more revenue to spend on public education.

The TABOR limit, or cap, is determined by an equation that includes factors like inflation, population and the prior year's revenue. The state must return any excess revenue above the cap or above the prior fiscal year’s “actual revenue” — whichever is lower — back to taxpayers in the form of TABOR refund check. In the past, checks have been up to $800; prior to 2010, TABOR refunds were distributed in the form of tax credits.

Douglas Bruce, a former Colorado State representative, wrote the original TABOR legislation. 

Bruce told Rocky Mountain PBS to check back in with him in August because there is “little political interest before Labor Day,” he wrote in an email to Rocky Mountain PBS. 

Bruce, who was convicted of tax evasion in 2012, said "the bill is unconstitutional — another broken record like CC, HH, etc." Bruce was referring to rejected ballot measures in years past.

In 2019, Colorado voted against Proposition CC, which tied TABOR funds to education and infrastructure. Four years later, voters rejected Proposition HH, which would have used TABOR refunds to minimize the increase in property taxes.

Colorado Democrats have unsuccessfully tried to change TABOR laws for the past 30 years. Voters have rejected two attempts to raise the TABOR cap and increase government spending. Additionally, Democratic in-fighting has led to indecision on how exactly to change TABOR to increase government spending. 

Frank Reeves, the director of operations and strategic partnerships for CRSA and a supporter of the bill, said that when the economy is good, the state cannot benefit because of the self-imposed TABOR cap that requires the state to reimburse that finding back to taxpayers. 

Opponents of the bill argue that increasing the TABOR cap for education funding means that when the economy is bad, there will not be increased funding for education. 

“That's just the reality of budgeting,” said Democratic Senator Jeff Bridges, a prime sponsor of the bill. “When the economy grows, our support for K-12 public education should grow with it.”

The TABOR Foundation, an advocacy group that works to keep TABOR in place, did not respond to Rocky Mountain PBS’ request for an interview.