Economic and Equity Analysis of the 2021 Colorado Statewide Ballot Measures
In Colorado, there’s no such thing as an off-year when it comes to voting on fiscal policy. This year, Coloradans are voting on three statewide ballot measures, and we want to make sure you know how we feel about them:
Amendment 78
What the Measure Would Do
Amendment 78 would change the way Colorado can distribute certain money not collected in taxes, otherwise known as custodial funds. These include, among other examples, money the state receives in federal funds and legal settlements (e.g. tobacco company lawsuits). This measure would move the authority for distributing that money from the governor and state agencies to the General Assembly.
Our Take
The biggest problem with Amendment 78 is that, in general, the current system is working. The executive branch determines how that money is spent and the legislative branch has oversight and can ensure the money is spent appropriately. This amendment is a poorly crafted solution in search of a problem.
Our Recommendation
Ultimately, with the General Assembly being a part-time legislative body that meets for 120 days from January to May, requiring legislative action to appropriate these funds creates uncertainty that they would be appropriated in a timely manner. Most critically, this measure would unnecessarily delay federal aid for floods, wildfires, and other disasters. That’s something our communities can’t afford. We recommend a no vote.
Proposition 119
What’s The Measure Would Do
Proposition 119 would increase the sales tax rate on recreational marijuana in order to fund a new program that would pay for out-of-school learning opportunities for kids whose families earn low incomes—a disproportionate number of whom are kids of color. Out-of-school learning opportunities are far too often limited to those kids whose families have the means to afford them, and their educational benefits are key to helping remove barriers to academic success.
Our Take
While CFI supports the goals of this measure, we have mixed feelings about the details of how Proposition 119 plans to accomplish the goal. First, it’s unclear whether a tax increase on marijuana is progressive or regressive because the data simply doesn’t exist to make that determination. Second, while most of the money will come from dedicated marijuana tax revenue, it will divert some General Fund money too, and that could create a situation in lean budget years where in-school K-12 funding could see cuts in order to fund out-of-school learning. Finally, the governing body of the Board and the lack of direct legislative oversight gives us pause.
Our Recommendation
Our staff did not come to a consensus on a yes or no position, therefore CFI is neutral on this measure.
Proposition 120
What The Measure Would Do
Proposition 120 is a confusing ballot measure, not just because property taxes are complicated (check out this video we produced last year that explains Amendment B, which repealed Colorado’s property tax-limiting Gallagher Amendment), but because the measure won’t actually do what the ballot language says. Voters who get their ballots will see a question on reducing the statewide assessment rate on residential and non-residential property by $1 billion. However, action taken by legislators in the 2021 session changed what will happen in Proposition 120 passes, and the end result will be a property tax reduction that only applies to multi-family and lodging properties.
Our Take
We know many property owners—especially people who earn low incomes—are feeling pressure from rising property values and corresponding increases in taxes. However, this measure is not the way to help people who are having trouble making ends meet.
Our Recommendation
The vast majority of the tax cuts will go to people who can afford expensive houses that carry the highest property taxes. Additionally, because of existing inequities in funding for schools, this will only deepen K-12 education funding problems, especially for rural communities. Property taxes also fund numerous local services and this measure will likely result in cuts, especially for places where property values are not rising as quickly as other areas of the state. For these reasons, we urge a no vote.
Thank You For Being An Infomed Voter
Regardless of how you vote, thank you for taking the time to learn about what’s on your ballot and voting. By voting, you’re sharing your voice and acting to make a difference in your community. This is especially true in Colorado, where voters are the tax policy decision makers, and those tax policy decisions have very real effects on whether or not our communities are thriving places where everyone has the opportunity to succeed.
Voter Resources
Obviously, we have our opinions about these measures, but we know our opinions aren’t the be-all and end-all. That’s why we’re proud to once again be partnering with other organizations as part of Count Me In. That effort provides factual, unbiased information about sometimes complex statewide ballot measures in a way that’s designed to be accessible for everyone. Visit Count Me In’s website to read the 2021 ballot guide and visit their Voter Resources Page for resources like the Blue Book, voter registration, and other community ballot guides.
