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The State Budget Crisis
The interaction of the Taxpayers Bill of Rights (TABOR), Amendment 23 (the education amendment) and the Gallagher amendment (which substantially limits the increase in residential property tax) has resulted in what some have called the perfect budget storm. State trust funds have been depleted, and programs important to families in rural Colorado such as youth crime prevention and low-income child health care - have been weakened or shut down. The legislature is currently considering securitizing a portion of the states Tobacco Settlement Agreement moneys, and then using those funds for the operations budget for fiscal year 2004-05. The original purpose of those funds was to help people stop smoking and for health-related areas of the budget, NOT for the general operation of state government. The estimates for the budget shortfall for the current fiscal year and next year change frequently. However, in spite of the deficit of projected expenditures over revenue, TABOR will require the refunding to taxpayers of nearly $90 million in fiscal year 2004-05! It doesnt matter if the states economy and revenues continue to improve TABOR simply does not allow for additional revenues to be spent on needed programs. It does not allow for the basic maintenance of state government services.
The Economy
Colorado has lost 82,000 jobs during the past two years. Colorado used to have the 5th strongest economy. Today, we rank 49th for job growth. Economists are predicting that employment will grow by only about 1.2 percent in 2004, with unemployment remaining in the range of about 5.6 percent. And, according to the Bureau of Labor Statistics, Colorado lost 5.1% of ALL its payroll jobs from March 2001 through January 2004, making it number two in the nation for percentage of jobs lost. Only Massachusetts did worse.
Agriculture
Farmers and ranchers should not feel compelled to sell their water rights to simply survive. Ranchers have had to reduce the size of their herds by 13% since last year, and many struggle to stay in business. Agricultural producers in rural Colorado are the stewards of the land some of the most important protectors of Colorados open space and environment.
Water
But the fight to preserve our water is not over - when water is transferred from one basin to another, state law must provide a process to mitigate the negative consequences of those transfers. Unfortunately Representative John Salazars mitigation bill, HB 1040, failed this legislative session on a close vote that clearly pitted urban areas against rural Colorado.
Tourism
Rafting, fishing, hiking, skiing, hot springs, mountains, reservoirs, ranches, historic towns, and other destinations can help the economy of House District 60 thrive. But the state must play a key role in promoting tourism we have lost tremendous ground in recent years because this state role has all but been abandoned. We must work together to solve the funding problem for tourism promotion so that the tourist industry one of Colorados top industries can compete at its best against other states.
Health Care
Many simply cannot afford health insurance coverage for their families. One in six Coloradoans do not have health care coverage. We must redefine what basic health care is, find ways to provide that to all, and also provide incentives for healthy lifestyles. Despite repeated promises, our leaders have failed us in this area.
Education
Perhaps the most important fundamentals for providing a world class K-12 education include parental involvement, small class sizes, and trained and accountable teachers. The Gallagher amendment, passed more than 20 years ago, has limited what can be collected in local residential property taxes. There has been a substantial shift in K-12 funding from local to state before Gallagher local property taxes funded 60 percent of the cost of K-12 education; now, local taxes fund just 40 percent with state government now carrying 60 percent of the load. The shrinking of state government primarily through the TABOR amendment has prevented state education funding from keeping pace with the needs. Additionally, public higher education is at great risk. Economists predict that if present budget trends continue, we will no longer have publicly-funded higher education in Colorado by 2009, only five years from now. Access to affordable, quality higher education facilities is critical for rural Colorado.
Transportation
Colorados growth rate and economy over the past decade has caused increased needs and constraints on our transportation systems. Local and regional involvement in transportation planning must be strengthened. Statewide transportation needs currently identified will require an additional $32 billion. We will need to consider a variety of alternative funding sources such as more toll roads, possible transportation impact fees, possible tax increases such as the gas tax, and perhaps more public-private partnerships.
Copyright 2004 By Emily Tracy. All rights reserved.
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