Success from the session: SB 228 most significant reform since Ref C

Emailed to supporters June 3, 2009

Success from the session
SB 228 most significant
reform since Ref C

By Wade Buchanan
President
buchanan@thebell.org

Today marks a major milestone in the journey toward greater fiscal sanity in Colorado. This morning, Gov. Bill Ritter signed SB 228, one of the most important pieces of legislation of his term in office.

SB 228 repeals an antiquated budget formula known as Arveschoug-Bird, and it more than doubles the state's reserve requirement as a cushion against future economic downturns. Both steps have been priorities for the Bell since we first released our groundbreaking report on TABOR in 2003.

Many things about the TABOR amendment are troublesome. But our research pointed to four fundamental flaws that most restricted the legislature's ability to budget rationally and meet the needs of a growing state.

Between Referendum C in 2005 and Senate Bill 228 in 2009, we have now corrected three of those flaws and made major progress on the fourth.

SB 228 is a big deal. In terms of being able to manage limited state revenues effectively, the state is in a vastly better position today because of this major reform.

At the signing ceremony this morning, the governor singled out the Bell and the  Colorado Fiscal Policy Institute, as well as several other organizations, for helping make SB 228 a reality. He also thanked bill sponsors Sen. John Morse (D-Colorado
Springs) and Reps. Don Marostica (R-Loveland) and Lois Court (D-Denver) for their leadership. Senate President Brandon Shaffer (D-Longmont) and Sen. Rollie Heath (D-Boulder) also joined the governor at the signing.

State Treasurer Cary Kennedy, who has long championed fiscal reform in Colorado, also recognized Carol Hedges of the Colorado Fiscal Policy Institute for her tireless work leading the coalition behind SB 228. Carol formerly was the director of the fiscal project at the Bell and was the lead researcher and author of our major report on TABOR in 2003. No one has worked harder than Carol to make fiscal reform a reality in Colorado.

No time to rest

While the signing of 228 marks a major milestone on the road to fiscal sanity, two big challenges remain.

We need to permanently lift the TABOR revenue limit. If we don't, within just a few years we will be back to the point where the state has to cut programs further in order to fund rebates.

And we need to modernize and update our tax structure to make sure it's fair and generates enough revenue moving forward to support the critical public structures that will underpin our future prosperity.

Today's achievement should be celebrated. But there is more work to be done, and the Bell will keep pushing for fiscal reform in Colorado. We appreciate all your help to date, and we look forward to your continued support.