ANNOUNCEMENTS: The legislative roundup, which is normally the program for the May meeting, must be delayed because the legislature will still be in session.

Britta asked the members if they wanted a meeting in June and they agreed to meet.

PROGRAM: Adrian Miller of the Bell Policy Center spoke on the TABOR Reform

SUMMARY OF THE TALK AND THE QUESTIONS: The Bell Policy Center did a statewide study of issues of concern to the people of Colorado. The number one issue is TABOR, the amendment to the Colorado constitution.

The four major provisions of TABOR are: 1. Voter approval of tax increases, 2. Limits on the growth of revenue, 3. Limits on the growth of spending, 4. Limits on revenue options.

The flaws of TABOR have become obvious in the changing economy of Colorado since the amendment was adopted in 1992. Temporary budget cuts become permanent. Flexibility is restricted. Savings and planning are difficult. Because corrections, Medicaid and K-12 education take 3/4s of the the allowable TABOR budget, other programs, such as higher education, get crowded out. A gap of $1.5 billion exists between revenue and allowable spending.

The Colorado Economic Recovery Act is a bi-partisan measure which will allow a five year time out on TABOR refunds. After five years, $100 million will be added to the allowable base each year. The revenue that will be available due to this change will be dedicated to public education, health care and strategic transportation projects. If there is enough revenue in the sixth year, state income tax will be cut from 4.63% to 4.5%. Another measure will be for bonding for transportation, schools, police and fire protection. Voters will vote on two referenda in November. One will concern the bonding measure and the other will cover the other measures in the Economic Recovery Act.

In response to a question, Mr. Miller said that public opinion is still anti-reform, but many religious groups and business groups support the Recovery Act. The League of Women Voters and AARP both have initiatives to reform TABOR but will not introduce them if the legislative proposal goes to the voters. When a member asked what we could do, Mr Miller responded that we should talk up the reform to everyone we can. He believes that the outcome of the TABOR issue will determine the kind of Colorado we will live in. Colorado has one of the lowest tax burdens in the country and the most restrictive limits on revenue and spending in the country.