Posted on 11/10/2004 11:48:22 AM PST by Reagan Man
DENVER - Gov. Bill Owens proposed a $13.6 billion state budget Tuesday that can be balanced only if lawmakers sell off Colorado’s yearly share of tobacco settlement dollars.
It’s the second time Owens has proposed hawking payments from tobacco companies — about $100 million a year to defray the cost of treating smoking-related illness — for a one-time payment of $800 million to $900 million.
The state is facing a $263 million shortfall for the 2005-06 budget year. Owens proposed using some of the tobacco money to shore up state spending, then putting the rest in a rainy-day account.
An almost identical plan to use tobacco money was rejected by state lawmakers last year, with many arguing that a one-time cash infusion would not solve the state’s longterm financial problems.
“Yes, I realize we are using one- time revenues,” Owens told members of the Joint Budget Committee. “I would ask you to consider it.”
The influx of cash from tobacco money would allow the state to increase funding by $146 million for K-12 education by and by $80 million for higher education. Money for prisons would increase by $20.9 million, and spending on health care would jump $216 million.
The one-time cash also would serve as a bridge, Owens said, buying lawmakers time to find a solution to a budget crisis caused by conflicting provisions within the state constitution.
The Taxpayer’s Bill of Rights, approved in 1992, caps the taxes the government can keep and spend. Amendment 23, passed in 2000, requires the state to increase education funding each year by inflation plus 1 percent.
Together, the measures force the state to spend more but keep less. Because education spending can’t be cut, it squeezes the amount of money available for other government services.
Owens on Tuesday suggested asking voters next November to let the state keep $200 million to $300 million in surplus tax dollars slated to be collected and returned under TABOR.
Asking to lift the spending limits has become known as de-Brucing, a tongue-incheek homage to anti-tax crusader Douglas Bruce, who wrote the TABOR amendment. Bruce recently was elected an El Paso County commissioner.
“Long-term, I think what we need to do is de-Bruce,” Owens said. “It’s time we use that adjustment.”
With the Democratic takeover of the House and Senate, Owens is facing a dramatically different legislative world than last year, when the GOP controlled both chambers.
Members of the six-member Joint Budget Committee began meeting Monday to discuss the state’s budget.
Owens’ budget is advisory; the legislature writes the budget in Colorado’s system.
The budget is produced by the committee and must be approved by the General Assembly, which will begin meeting Jan. 12.
Democratic leaders are feeling out their new relationship with the governor. They responded to his budget proposal cautiously.
“We have some common goals we all want to achieve,” said Rep.-elect Bernie Buescher, D-Grand Junction, a nontraditional committee appointee by Democratic leaders because he is a freshman lawmaker. “But we have a very difficult task of balance the short-term needs versus the long-term needs in this state.”
More experienced members, such as Rep. Tom Plant, D-Nederland, said the governor’s tobacco money plan has problems, such as how to fund smoking cessation and other health care programs funded by tobacco payments.
“Such a method of balancing the budget isn’t a good approach,” he said. “But we are all looking forward to working with the governor, and we appreciate his proposing some long-term solutions to our budget problems.”
Think how much more money they would have had if they had just raised taxes on cigarettes instead of letting trial lawyers sue and take a 1/3 of the cut...
Too bad they let themselves be painted into a corner by Big Educrats.
Get over it Owens this is NOT and never has been tobacco company money..........the companies were permitted by the settlement to raise the price of cigarettes to cover the payments to the states.
This is a tax on smokers and only smokers.
Ping.
To pay for the settlement the price of a pack of cigarettes was raised by 45cents......that money is NOT coming from the companies, but from smokers.
As usual government theives are balancing the budget on the backs of less than 1/4 of the taxpayers.
*sigh* Tell this to all on here who think Owens should run for Pres next time around.
I don't care if they try to go foro the one-time payment.
My gripe is the folklore (lie) that the settlement money is coming from the industry. And it is continually perpetuated by people who should know better.
We are going through the same deal here in Oklahoma were the foolish passed a 80 cents a pack tax. Thank God the Tribes that run all the Smoke Shops are contesting it.
A one-time payment I could live with, as well. Balancing the budget (as if) on the backs of smokers is wrong. We can't even get federal monies to get our cruddy roads fixed.
The counties all have wildly different tax bases mainly to pay for road construction.
You are missing the point. The state will receive the money from the tobacco companies regardless of how those companies generate the revenues. Owens is asking the legislature to re-allocate where those revenues are spent.
Virginia increased cig taxes this year for the first time in who knows how long, for, you guessed it............to balance the budget.
Folks from Maryland still cross the line to buy here, because it's still cheaper.....but still.
We have the same cross-over affect here with the foolish liquor laws. Since our town is some fifteen miles from the Missouri state line one can buy booze (gasp! Even on election days and Sundays!) for nearly 20% less in another state. The mooks in the legislature can't seem to grasp the concept that they are outsourcing all the revenue to another state!
As an added bonus: Missouri chills it's beer and Oklahoma does not.
Thanks for the ping, Madame Dufarge. Let me read this.
Oh sure. Let the SMOKERS carry the weight of state budgets on our backs. It sure is easy for the anti/non-smokers to dump the load on smokers. We are TIRED of it!
Think how much more money they would have had if they had just raised taxes on cigarettes instead of letting trial lawyers sue and take a 1/3 of the cut...
Can anyone believe this chit?
So, put it to a vote. You'll still lose.
The brutal choice is: pay more or quit.
I like wine, and will not quit drinking it, but I have to pay the taxes on it to enjoy it.
Between this and the marital rumors I have gotten over Owens and am now supporting, if he'll run, Minnesota Governor Tim Pawlenty.
Owens has lost my support. It is either Sanford or Pawlenty..
I like Frank Keating. He's rested and ready.
Pawlenty/Sanford 2008.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.