Colorado Faces Budget Dilemma as Taxpayers Await Refunds and Democrats Prioritize Spending Over Taxpayer Relief
Written by: Marianne Partisan
Colorado's economy is booming, with wage growth and overall economic output exceeding expectations, according to state economists. However, high housing, energy and food costs, plus the repercussions of failed Bidenomics, Coloradans quality of life has also regressed.
The latest economic forecasts presented to the Legislature's Joint Budget Committee reveal higher-than-expected gross domestic product and state tax revenues for 2024. However, because of the Taxpayer's Bill of Rights (TABOR) protections, Coloradans can anticipate substantial refunds in the next three years.
Democratic legislative leaders acknowledge the strong economy but express concerns about the constrained state budget. State Senator Rachel Zenzinger emphasized in a news release the need to be bold in supporting critical services while remaining responsible and constraining spending to prepare for the future.
However, critics argue that Democrats are prioritizing spending over refunding excess revenue back to Colorado taxpayers.
Under TABOR, excess revenue can be refunded through various mechanisms. This year, Coloradans will receive flat refund checks of $800 each, regardless of income levels or what they are actually owed.
Democrat lawmakers enacted this unfair plan during a special legislative session last year, replacing the tiered payment system based on fair income levels.
Lawmakers and officials from the governor's office had hoped for a return to a "normal" Colorado budget after experiencing years of booming growth following the COVID pandemic. However, challenges have seemingly emerged.
The U.S. Census estimates show that the state's population growth is lower than anticipated, resulting in a smaller increase in the state revenue cap under TABOR. Additionally, the state is projected to collect $185 million more in road usage fees and retail delivery charges than the previous year.
These factors, combined with expected TABOR refunds, create a dilemma for tax-and-spend state lawmakers. They will have to make difficult decisions, potentially cutting or rejecting $267 million in spending requests to balance the budget for the next fiscal year, according to estimates from Colorado's Legislative Council Staff.
READ MORE:
DESPITE THE TAXES YOU PAID, YOUR TABOR REFUND WILL BE THE SAME AS EVERYONE ELSE
COLORADANS ARE PROJECTED TO RECEIVE SLIGHTLY LOWER TAXPAYER REFUNDS NEXT YEAR THAN ANTICIPATED
While Governor Jared Polis highlights Colorado's strong economic growth and low unemployment, critics argue that the focus on strengthening the workforce and saving money on various expenses should not come at the expense of providing much-needed tax relief to hardworking Coloradans. They argue that Democrats should prioritize refunding the $2 billion in taxpayer overpayments instead of allocating the money towards pet projects and additional spending.
As the budget negotiations continue, taxpayers across Colorado eagerly await their refunds while questioning the priorities of Democrat state lawmakers, who seem more committed to spending than to providing much-needed relief in the form of refunds.
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