No on Prop. 116 tax cut

For all the gripes sent to the Gold Dome, Colorado’s state budget is pretty lean and mean.

Yes, there are a few eyebrow raisers in the Long Bill — a few tax- credits- gone- to cronies and three or four pet projects signed into law.

But, compared to the excesses of other states, the Taxpayer’s Bill of Rights has forced the state to spend most taxpayer money ( including federal and cash funds) on the things we need to have — Medicaid ($ 10.7 billion), education ($ 6.2 billion), higher education ($ 4.8 billion), human services ($ 2.3 billion) and transportation ($ 2.1 billion). The financial crisis spurred by the arrival of a novel virus has blown a massive hole in the state’s coffers.

In fiscal year 2019- 20, the state used federal funds and money in its reserve fund to plug a roughly $ 1.3 billion hole in the budget.

Fiscal year 2020- 21 was worse with a roughly $ 3 billion gaping wound in the budget that was filled with federal funds, state reserves and cuts.

When first the governor and then lawmakers sit down to craft the 2021- 22 budget this winter and spring, it’ll be a bloodbath unless Congress gets its act together and passes an emergency aid bill that includes funding for state and local governments, or a safe and effective vaccine is administered nationwide before next summer.

Despite all of this, Colorado voters are being asked whether they should further reduce state revenues by cutting income taxes.

We urge voters to say no to Proposition 116 and to reject cutting state funds by an extra $ 203 million in 2020- 21 and $ 154 million in 2021- 22.

Consider too that at this juncture in history we are asking more of state government than we have ever asked before: coronavirus testing, contact tracing, and emergency hospital facilities in case the virus overwhelms our hospital systems this fall. We are also asking more of our schools: sterile facilities, social distancing, personal protective equipment, take-hometechnology for every student, and smaller class sizes.

If we want the state to get back up and running without suffering too big a loss, if we want our children to not fall a grade behind, and if we want to continue to fight this virus, we must continue to invest in state government.

On its face, the cut may seem like a raindrop in a $ 30 billion river, but keep in mind that this tax cut is likely permanent. Colorado voters have shown an extreme reluctance to raise taxes at the ballot box and Colorado lawmakers are prohibited from doing so under TABOR. Income taxes were reduced in 1999 from a flat tax of 5% to 4.75%, and again a year later to 4.63%. Times were good for state government — PERA was giving away money under Gov. Bill Owens by increasing benefits and cutting contributions. Hundreds of millions of dollars were returned to taxpayers via TABOR refunds. And then the dot- com bubble burst, the Great Recession hit eight years later, and those cuts and splurges look like absolute folly.

Prop. 116 would reduce the rate again to 4.55%.

Only this time, we know the economy is on shaky ground and that the state is facing a massive cut in revenue. Voters know ahead of time that a rocky few years may be in store. Vote accordingly.