The Denver Post

Dems, GOP probe way to fund transporta­tion

Lawmakers agree issue is pressing, but unsure of solution

- By Alex Burness

One thing every lawmaker inside the Capitol agrees on: Colorado needs to allocate a lot of money, this year and in the future, to address the state’s multibilli­on-dollar transporta­tion project backlog and additional road, bridge and transit needs that will arise as people continue to move here.

Capitol Democrats and Republican­s, the governor’s office and numerous outside groups have been and still are engaged in talks about a potential bipartisan deal that could come at some point this legislativ­e session, which ends in early May.

But in the event that no legislativ­e solution is reached this year — a very real possibilit­y — it may be up to voters to decide in November, one way or another, whether this growing state, with its increasing traffic and limited transit network, will finally have a sustainabl­e source of revenue for transporta­tion.

“I want something that is bipartisan. I would like to see a solution,” said House Speaker KC Becker, a Boulder Democrat. “But I’m willing to go back to the ballot.”

Colorado does have a dedicated revenue stream for transporta­tion: the gas tax. It’s just increasing­ly unreliable as more

people turn to electric and hybrid vehicles, and it hasn’t been increased, even to adjust for inflation, since the 1990s.

Republican­s, who are in the minority in both chambers of the state legislatur­e, say the solution to the problem — or at least a big component of the solution — is to allocate large sums from the state’s general fund toward transporta­tion.

They want about $300 million for that purpose in this year’s budget, which the legislatur­e will deliberate on next month. Democrats, however, aren’t too open to this idea, because, in the absence of a new revenue source, pouring millions into any one budget priority necessaril­y means that those millions will have to be diverted from another priority. Becker and other Democratic leaders say they have yet to be convinced of a way that can be done responsibl­y.

Democrats are much more open to the idea of raising fees on drivers as a means of generating new revenue.

Reasonable minds at the Capitol disagree over whether taxes and fees are actually all that different. The gas tax is really more of a fee, argued Senate Majority Leader Steve Fenberg in an interview last week with The Denver Post. In a separate interview, Senate Minority Leader Chris Holbert rejected that theory and added that other road fees should be in fact be reclassifi­ed as taxes.

It’s not a semantic difference: Fees can be raised by the legislatur­e, but tax increases require voter approval.

“It may be a fee on car registrati­on. It may be an electric vehicle fee,” Becker said. “There are a whole bunch of different ways we could do it.”

The question she and other Capitol Democrats are wrestling with: “Are you going to do a tax by going to voters or are you going to do a fee inside the building?”

Either course carries political risk.

Holbert said he thinks that if Democrats raise fees, they’ll be signing away their majorities come 2020.

“If the Democrats want to go increase so-called fees when they ought to be taxes and help us win majorities, OK. But the statesman in me says don’t do that,” he said.

His prediction that increased fees alone could flip the Capitol may include a measure of wishful thinking, but there is some truth to what he’s saying, said Scott Wasserman of the liberal Bell Policy Center, which is closely involved with these ongoing transporta­tion funding talks.

“All of the ideas to come up with a dedicated revenue stream are politicall­y unpopular. Gas taxes poll terribly … and these fees that people are talking about are going to be politicall­y dicey,” he said.

They could be made less touchy if packaged in the right deal, some believe.

“I think it probably takes a couple things working together,” Becker said. “The only fee Republican­s really support is an electric vehicle fee, but we’re not going to pass that unless we get something else for it.”

Added Fenberg: “I think there needs to be a package. … I also think it’s such an important issue that we should approach it knowing it may take a couple of years to get the right deal cut. The sooner the better, but I think it’s important that we actually solve this problem, because it’s pretty fundamenta­l to our state and our budget.”

Ballot implicatio­ns

Becker and Holbert say they’re hopeful something can get done this legislativ­e session. Outside groups working on the issue say the same. Mike Kopp, the former Senate minority leader who now heads the conservati­ve organizati­on Colorado Concern, called this a “remarkable” opportunit­y for cooperatio­n and compromise to advance a matter of statewide interest.

“Because the public desire is so great, I think there’s an opportunit­y to find common ground apart from those perfection-ornothing positions that have wound up providing the people of the state nothing,” he said.

But Kopp could not identify a specific package he thinks has legs. Neither did any of the elected leaders interviewe­d for this story. This speaks to the fact that those talks are very much ongoing, but also to the fact that substantia­l points of disagreeme­nt make a compromise very difficult to find.

This reality could motivate Democrats in the legislatur­e — or outside of it, through Bell and other liberal groups — to consider placing a tax increase on the 2020 ballot in order to find new revenue for transporta­tion, and possibly for other needs, too.

It’s been clear for weeks that at least one progressiv­e tax measure is almost certainly headed for the ballot, but it’s not yet known whether transporta­tion funding will be a part of it. And if Democrats don’t try to reclassify the gas tax as a fee — Fenberg didn’t rule that out — they could ask voters to raise it.

Tax hikes have lately been a losing propositio­n for Colorado Democrats at the ballot box. In 2018, voters denied a tax increase that would’ve funded transporta­tion, and late last year they denied Prop CC, which would’ve directed

Taxpayer’s Bill of Rights refund money toward roads and bridges.

After CC lost, Democratic Gov. Jared Polis said the legislatur­e should solve the transporta­tion funding quandary itself. He’s wary of a pending bill brought by Democrats that would allow local government­s to create their own regional districts to pay for transporta­tion projects, and he’s wary of returning it to voters this year.

“The governor has been very clear with GOP leadership, when we meet with him every other week, that he doesn’t support going back to the ballot,” Holbert said. “That only leaves two options: general fund, because we have the authority to allocate those dollars, or fees. There isn’t another option that I’m aware of.”

Some Democrats are more fearful of the ballot approach than others. If a bipartisan deal doesn’t emerge, though, that approach may be the only one with any possibilit­y of delivering new money in the very near future — something everyone involved professes to want.

“We all sit in traffic, and we hate it,” Fenberg said. “But we know it will only get much worse.”

 ?? Helen H. Richardson, The Denver Post ?? A truck takes the southbound E-470 exit off of southbound Interstate 25 on Oct. 28, 2019, in Thornton while other vehicles take northbound I-25. If no legislativ­e solution is reached this year, it’s possible the 2020 ballot may include a tax measure to find new revenue for transporta­tion.
Helen H. Richardson, The Denver Post A truck takes the southbound E-470 exit off of southbound Interstate 25 on Oct. 28, 2019, in Thornton while other vehicles take northbound I-25. If no legislativ­e solution is reached this year, it’s possible the 2020 ballot may include a tax measure to find new revenue for transporta­tion.
 ?? Joe Amon, Denver Post file ?? House Speaker KC Becker works with legislator­s at the Colorado General Assembly in May 2019.
Joe Amon, Denver Post file House Speaker KC Becker works with legislator­s at the Colorado General Assembly in May 2019.

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