By Rocky Mountain Voice Staff
As Colorado faces a $1.2 billion budget deficit, state lawmakers are once again debating the role of the Taxpayer’s Bill of Rights (TABOR) in shaping the state’s financial future. With deep cuts expected for education, health care and social services, some Democratic legislators are raising concerns over TABOR’s limits on government spending. Yet Republicans argue that the deficit is a result of overspending rather than shortfalls in revenue.
Passed by voters in 1992, TABOR restricts government spending growth to population increases, plus inflation, and requires that any surplus revenue be refunded to taxpayers.
Supporters argue that these restrictions prevent excessive government expansion, while critics say the formula is too rigid, making it difficult for the state to respond to economic shifts.
State Sen. Jeff Bridges (D-Greenwood Village), chair of the Joint Budget Committee, has suggested revisiting a temporary suspension of TABOR. This recommendation is similar to Referendum C, which in 2005 allowed the state to retain excess revenue for a period of time rather than issuing refunds.
Sen. Judy Amabile (D-Boulder) told the Summit Daily, “People have to feel the pain before they’re going to respond and want to change TABOR.”
State Republicans have expressed firm opposition to altering TABOR, arguing that Colorado’s budget shortfall is the result of spending policies rather than insufficient revenue. The Senate GOP released a statement rejecting any effort to modify TABOR:
“Any attempt to weaken or destroy the Taxpayer’s Bill of Rights is a direct attack on the will of Colorado’s voters. It isn’t just a policy debate. The state government does not have a revenue problem: it has a spending problem.”
Republicans argue that rather than seeking to adjust TABOR, lawmakers should focus on cutting wasteful government expenditures.
Recent ballot initiatives aimed at modifying TABOR have failed to gain voter approval. In 2019, Proposition CC, which sought to permanently eliminate taxpayer refunds, was rejected. Similarly, in 2023, Proposition HH, a property tax measure that would have diverted TABOR refunds to backfill lost revenue, was also defeated at the ballot box.
House Speaker Julie McCluskie (D-Dillon) has suggested that TABOR reform discussions may resurface in the near future. However, given past voter opposition, any proposed changes are likely to face significant hurdles.
As the budget deficit forces difficult spending decisions, the debate over TABOR’s impact on Colorado’s financial stability is expected to continue.