THE 6% SOLUTION
For our government to do its work, it must have the resources it needs to be effective. Unfortunately, a series of conflicting constitutional requirements, ranging from the limits on growth required by TABOR to the dedicated funding required by Amendment 23, have made it increasingly difficult for the Legislature to set funding priorities and meet our state’s needs.
The Legislature has an opportunity to change this. There’s a Colorado law, known as the 6% provision (or Arveschoug-Bird), which requires that the state’s General Fund operating budgets can grow no more than 6 percent annually. Any additional revenue needs to be spent on non-operating expenses. This provision doesn’t change the amount of money the state spends, but it restricts how that money can be spent. In practice, it has meant that Colorado has been unable to keep up with the needs of programs such as higher education, health care, and other public services.
Senate Bill 228, sponsored by Senator John Morse (D-Colorado Springs) and Rep. Don Marostica (R-Loveland), will get rid of the 6% and give the Legislature the flexibility to decide how best to meet the state’s funding needs.
The need for the bill is even more urgent as the state copes with the economic downturn. If we don’t eliminate the 6% provision, program cuts made during the current recession will effectively be permanent.
That’s why we’ve joined the campaign to begin to fix our state’s fiscal crisis. This isn’t the first time Common Cause has weighed in on budget issues; we opposed TABOR in 1992 and were active in the campaign for Referendum C as well. We are also working on budget issues at the national level, watchdogging the bailout and stimulus plans to ensure that they serve the public interest.
As Colorado faces an escalating budget and economic crisis, the state must use every tool it can to shorten the recession, strengthen our economy, create jobs, and improve our fiscal standing. We need to invest in our government so it can do its job effectively.