.png){kind=logo}
DENVER, CO – The House today passed legislation with bipartisan support 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 42-22.
“Initiative 175 would force cuts to hospitals, increase tuition, and institute a new budget stabilization factor that would slash spending for K-12 education; it is an irresponsible measure, which is why Democrats and Republicans are coming together to take action to protect our constituents and these core services,” said Speaker Pro Tempore Andy Boesenecker, D-Fort Collins. “We all agree that there’s more we can do to fix our roads, but closing hospitals, eliminating DUI prevention efforts, and defunding our schools are not consequences we are willing to accept. The contractors who would directly profit from this measure must pull it from the ballot and work with us to find a responsible alternative that funds transportation without harming Coloradans.”
“Initiative 175 would require $700 million in cuts to K-12 education, higher education, and healthcare and public safety programs. It’s not right to put this funding at risk with a misleading ballot measure,” said Rep. Emily Sirota, D-Denver. “We just finalized this year’s budget, which included substantial cuts to account for a $1.2 billion budget hole, and we’re looking at another billion-dollar funding gap next year. We cannot fund roads at the expense of Colorado children, patients and rural communities. This is not the path we would prefer to take, but special interests have left us without a choice. This bill, which has support from both sides of the aisle, is the only responsible choice available to protect our schools, health clinics, hospitals and public safety.”
If approved, Initiative 175 would require the state to spend around $700 million a year on road projects without providing any new revenue. This comes on the heels of three consecutive years of $1 billion cuts to the budget. In order to divert funding exclusively to road construction, 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.