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DENVER, CO – The House Transportation, Housing and Local Government Committee today passed legislation to protect funding for core services, like K-12 education and healthcare, if Initiative 175 is approved in the November election. HB26-1430, sponsored by Speaker Pro Tempore Andy Boesenecker and Rep. Emily Sirota, passed by a vote of 9-4.
“We all want to see more funding for roads, but Initiative 175 is dangerous and irresponsible and could lead to devastating cuts to K-12 education, higher education, healthcare and public safety,” said Speaker Pro Tempore Andy Boesenecker, D-Fort Collins. “Initiative 175 would lead to a new budget stabilization factor for K-12, rural hospitals closing, and higher tuition costs in order to fund highway construction. We all want better roads, and we’re working hard to make that happen, but we can’t do that at the expense of K-12 education funding and life-saving healthcare services that Coloradans depend on. Our bill is a last-resort fail-safe to encourage initiative 175 proponents to come to the table with a more responsible alternative that won’t close hospitals and schools or slash funding for road safety initiatives that save lives.”
“This year’s budget was one of the hardest budget processes I have ever been through, and Initiative 175 completely undermines all of the hard work that we did to protect Medicaid coverage and education funding,” said Rep. Emily Sirota, D-Denver. “Initiative 175 would make the budget crisis even more dire, diverting over $700 million from K-12 education and healthcare to benefit one special interest group instead. Initiative 175 misleads voters by asking a simple question without presenting any of the consequences of voting yes. We’re making sure voters know what this measure could mean for our state, and we’re taking steps to protect education and health care should it pass.”
If approved, Initiative 175 would require the state to spend around $700 million a year on highway projects without providing any new revenue. This comes on the heels of back-to-back-to-back $1 billion cuts to the budget. Initiative 175 would require $700 million in cuts to K-12 education, higher education and Medicaid, leading rural hospitals and clinics to close, tuition to increase, and to a new budget stabilization factor for K-12. In addition to devastating education and healthcare funding cuts, Initiative 175 would defund the DMV, the Peace Officer Standards and Training fund, the Emergency Medical Services fund and DUI prevention efforts.
If Initiative 175 were to pass in November, HB26-1430 would make a number of changes to transportation funding to mitigate the harms from the initiative. Contingent on Initiative 175 being adopted by voters, the bill would temporarily reduce the excise tax on gasoline and special fuel, vehicle registration fees and road usage fees. The reduced revenue would open up more general fund dollars to support critical government functions like education and healthcare, reducing the revenue that would have to be refunded under TABOR. Also known as the Colorado Budget Protection Act, HB26-1430 would create the Support Road Transportation Fund to house the $700 million allocated by the approval of Initiative 175. The money in this fund would replace certain transportation-related general fund transfers.
In April, the legislature passed a bipartisan budget that protected K-12 education and core healthcare services while making reductions across state departments, lowering the state’s reserve and reducing Medicaid spending to close a $1.2 billion deficit. This deficit was caused by H.R. 1’s tax cuts for corporations and the ultra-wealthy, TABOR and growing Medicaid costs. Despite these challenges, the Joint Budget Committee was able to prevent bringing back the Budget Stabilization Factor and protect funding for universal preschool and core healthcare services.
More than 40 organizations sent a letter asking proponents of Initiative 175 to withdraw the proposal, stating that the measure would force the General Assembly to make major reductions to Medicaid, K-12 education and higher education. The letter is backed by the bipartisan Joint Budget Committee as well as transportation, education, healthcare, environment, business and labor institutions and community groups.