Colorado senate poised to drain billions from taxpayer refunds
A contentious proposal in the Colorado State Senate threatens to siphon an estimated $7,381 from every taxpayer’s TABOR refund, sparking outrage and accusations of deceptive tactics.
A radical shift in state funding
The bill, spearheaded by Sens. Kathy Kipp and Jeff Bridges, seeks to unlock up to $37.5 billion in dormant tax revenue over the next decade – a figure that dramatically outpaces previous projections. A significant portion, $9 billion, is earmarked for K-12 education, while the remaining $28.5 billion is designated for ‘The Children’s Fund,’ a label critics are already branding as a slush fund.
“I wanted to change it to ‘Government Helping Themselves to Your Taxpayer Refund Check Forever and Putting It Into Their Pocket,’ but that was a little too long,” quipped State Sen. Barb Kirkmeyer, opting for the less evocative ‘Government Waste Fund’ instead. The lack of detail regarding the $28.5 billion’s allocation further fuels concerns about transparency.
Bridges, however, insists on a separate bill outlining specific spending priorities, promising to direct those funds “solely to the benefit of kids – K-12, pre-k, you name it.” But State Sen. Byron Pelton is challenging the bill's claims, asserting that the $9 billion for schools is restricted to particular areas like class size reduction and teacher compensation, a restriction not reflected in the current language.
“We’re not being honest with the voters with this. Details do matter,” Pelton stated emphatically. Kirkmeyer’s response was equally pointed: “Let’s be clear. Let’s stop gaslighting the taxpayers and teachers, for that matter.”
A compromise was reached, with Bridges agreeing to incorporate ‘only’ into the language concerning the $9 billion, specifying it’s intended for teacher pay, retention, smaller class sizes, and vocational training. State Sen. John Carson underscored the significance of this change, noting that the funds represent refunds that would otherwise be returned to the public: “This will be by far the largest tax increase in the history of Colorado.” State Sen. Larry Liston added, with a touch of cynicism, “It’s enough to turn your eyeballs back in your head.”
While the Senate passed the measure on a voice vote, a recorded vote is expected next week before it heads to the House. If approved, it will be subject to a public vote in November. Analysis projects that every taxpayer will lose approximately $7,381 in TABOR refunds, compounded by an additional $1.8 billion annually for schools after the initial ten-year period. A third of these funds are projected to flow to Denver, Aurora, Jeffco, and Adams 12.
Despite Bridges’ assertion that this isn't a “tax increase” – arguing the state already possesses these unspent revenues – Kirkmeyer remains unconvinced, stating plainly, “We all know when you increase the cap, you’re increasing taxes.”