Sometimes the dog catches the car. When it does, it quickly discovers that it bit off more than it can chew, and it has to let go.
That’s exactly the situation that far-right Colorado politicians and dark money groups have found themselves in with Initiative 108. If passed, Initiative 108 would devastate rural and working-class urban communities and families throughout the state, while giving exorbitant tax cuts to the wealthiest Coloradans.
The multi-millionaire proponents of Initiative 108, and their legislative cheerleaders, have now demanded a special session of the legislature — which started Monday — to enact a deal brokered through backroom negotiations, in exchange for removing 108 from the ballot. They’ve realized that 108 is extremely detrimental to most of the communities that they represent. They’ve caught the car and are now looking to save face with a deal that would let them and their communities walk away unscathed, with a chunk of the bumper to show for their efforts.
Not a dime of property tax revenue is collected by the state of Colorado. If Initiative 108 passes, residents of Parker, for example, will vote on whether to reduce the local taxes of residents in Steamboat Springs.
Colorado residents have been promised that if they vote “yes” on 108, their local governments will not be harmed because they will be reimbursed from the state general fund. This means that our available General Fund balance of $10.2 Billion would take a $2.25 Billion hit, requiring a cut of more than 20% to state programs and services.
As the state entities that receive the most state funding, Health Care Policy and Financing, Higher Education, Human Services, and Corrections would absorb 75% of the cuts. These agencies disproportionately serve rural and urban working-class Coloradans. If 108 were to pass it is entirely likely that the closure of one of Colorado’s Community Colleges will be on the table to meet the fiscal obligations it imposes.
It’s important to note that low- to moderate-income communities would be most harmed by spending cuts and would also get disproportionately little of the savings generated by the tax cuts. If passed, the tax savings of the median homeowner in Logan County, where the service cuts would likely be devastating, is around $260. For the median homeowner in Eagle County, where the state service cuts are likely to be comparatively small, the annual savings will be closer to $830.
While our property taxes are third lowest in the nation, a series of events (including a steep increase in property values) led to a rapid, and we recognize a painful, increase in property tax. So, throughout the 2024 session, legislators from across the spectrum worked together to deliver responsible tax relief to Coloradans. We accomplished that.
In fact, the Colorado Senate GOP’s website proudly boasts “$1.75 billion in tax relief delivered for Colorado in 2024.” Three-quarters of that relief came in the form of Senate Bill 233, our responsible alternative to Initiative 108. That bill passed the legislature 90-8, with every member of GOP leadership voting for it. At the time, Senate GOP Joint Budget Committee Member Barbara Kirkmeyer declared that to go further would “cripple the state’s budget.”
Now, she and other GOP lawmakers are supporting our return to the Gold Dome for a special session to vote on a deal that we’ve not been privy to. We are speaking for a group of legislators who care deeply about their communities and want to provide economic relief that impacts the lower and middle class while ensuring local community revenue reductions are minimized, and a process that is transparent and inclusive.
We are not rubber stamps, and we are being asked to blindly trust a deeply flawed process. We believe that the voters of Colorado are smart enough to recognize that 50 and 108 were huge giveaways to the wealthiest Coloradans at the expense of our schools, fire departments, and other essential services. From the little we know of the parameters around a proposed deal, while not nearly as harmful as 108, it would still be extremely damaging to working families in Colorado.
Dozens of wildfires are currently burning throughout the state. Only taking into consideration SB24-233, the loss to fire districts over the next five years will be $430 million. At a time when wildfires are increasing in frequency and intensity, our firefighters are already operating at a deficit, lacking proper equipment, and struggling with workforce issues.
We do not believe further cuts, which would return minor benefits for homeowners, would be worth the very real pain they would inflict on our state budget and critical community services. Rather than demanding to keep the bumper, the GOP and their multi-millionaire partners attempting to extort the state legislature (and our communities by proxy) should let go of the car, honor the agreements that were already made in public hearings, and remove their support for this disastrous initiative – Initiative 108.
The legislature must take advantage of this forced negotiation to ensure that the harm to community services is minimal – if not zero –while also ensuring economic relief is given to those most in need. This special session is our chance to demonstrate what an equitable property tax solution looks like.
Lorena Garcia is a member of the Colorado House representing District 35 in Adams and Jefferson counties. Nick Hinrichsen is a member of the Colorado Senate representing District 3 in Pueblo County.Both are Democrats.
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Originally Published: August 26, 2024 at 10:59 a.m.
