City of Boulder 2A - Sales and Use Tax Extension and Reallocation

The city of Boulder has a budget. Revenue goes in the general fund unless the revenue is dedicated for a specific purpose such as open space. City council has flexibility to spend general fund money according to the city’s current needs and priorities. The more revenue that goes into dedicated funds, the more handcuffed city council is when trying to budget for fire and emergency response services, public safety services, human services, homelessness solutions and services, parks, and other general fund purposes.

Some of Boulder’s sales and use taxes are permanent and others sunset. A 0.15% sales and use tax for the general fund is due to expire at the end of 2024. Arts supporters circulated an initiative petition to ask voters to extend the tax but repurpose it for arts and culture. Meanwhile, the city council wanted a simple extension with all the revenue continuing to go to the general fund. The two groups compromised with arts getting 50% and the general fund getting 50%.

If this tax extension passes, Boulder may have to find alternative sources of funding to keep non-arts city services funded at the current level. The proponents argue that the city can afford to put half the tax revenue into arts since the city is no longer paying for a library. Note that voters are still paying for a library through higher property taxes –- money that previously was part of this sales and use tax. The TABOR language in this ballot question is “Without raising additional taxes,” but taxpayers would effectively pay more in taxes.

If this tax extension fails, expect to see a tax extension on next year’s ballot, maybe with all the revenue going to the general fund.

Recommendation: AGAINST THE MEASURE

Dedicated taxes are problematic. Boulder should have a very good reason for a dedicated tax. The library was consistently getting short shrifted in the budget so voters approved creating a library district. (Note that “libraries” is no longer listed in the ballot language’s general fund purposes.) Boulder’s open space is a core part of Boulder’s identity and also gets substantial dedicated tax revenue. Arts and culture get some funding from the city, but arts and culture do not merit a dedicated tax.

A cleaner, more honest option would have been to put two questions on the ballot:
*one to collect 0.075% sales and use tax for general fund purposes and
*one to collect 0.075% sales and use tax for arts and culture
That would be true direct democracy. The county took this very tactic in 2016 with its 1B and 1C ballot measures.

Website for the Yes side
https://2aforall.com/

Website for the No side
No known website – Info on an opponents’ website appreciated.
2½-minute argument in opposition: https://tinyurl.com/NoOn2ABoulder
Former council member Mary Young’s guest opinion: https://tinyurl.com/yzper79m


Approved Ballot Language
City of Boulder Ballot Question 2A
CITY SALES USE AND TAX EXTENSION (TABOR)

WITHOUT RAISING ADDITIONAL TAXES, SHALL THE EXISTING 0.15 CENT CITY SALES AND USE TAX FOR GENERAL FUND PURPOSES, APPROVED BY THE VOTERS BY ORDINANCE 7300, BE EXTENDED BEYOND THE CURRENT EXPIRATION DATE OF DECEMBER 31, 2024, UNTIL DECEMBER 31, 2044, WITH THE REVENUE FROM SUCH TAX EXTENSION AND ALL EARNINGS THEREON BE USED TO FUND SERVICES AND PROJECTS AS FOLLOWS:
· 50% FOR FIRE AND EMERGENCY RESPONSE SERVICES, PUBLIC SAFETY SERVICES, HUMAN SERVICES, HOMELESSNESS SOLUTIONS AND SERVICES, PARKS, AND OTHER GENERAL FUND PURPOSES;
· 50% FOR ARTS, CULTURE, AND HERITAGE PURPOSES; INCLUDING DIRECT AND GRANT FUNDING FOR ARTS AND CULTURE NONPROFITS, PROFESSIONAL ARTISTS, ARTS EDUCATION, VENUES AND WORKSPACES, PUBLIC ART, AND MULTI-CULTURAL PROGRAMS;
AND IN CONNECTION THEREWITH SHALL ANY EARNINGS FROM THE REVENUES FROM SUCH TAX EXTENSION CONSTITUTE A VOTER APPROVED REVENUE CHANGE AND AN EXCEPTION TO THE REVENUE AND SPENDING LIMITS OF ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION?

For the Measure ___
Against the Measure ___

Ordinance 8591 to refer Question 2A to the ballot
https://documents.bouldercolorado.gov/WebLink/DocView.aspx?id=182490&dbid=0&repo=LF8PROD2&_ga=2.168124513.1348057877.1697325494-181246305.1661276300&cr=1