Friday, November 29, 2013

The 2013 Elections

City voters were once again very generous and approved all the ballot measures except 310, the initiative which would have made municipalization of the electric utility harder to achieve. State voters approved the follow-up to Amendment 64 – marijuana sales and excise taxes – but didn’t pass the two-tier income tax to improve funding of public education.

Meanwhile, this year’s new election law, House Bill 1303, is in the spotlight in the close Broomfield fracking ballot issue. On Election Night, the fracking ban failed by 13 votes, but when outstanding ballots were counted and certified, the ban passed by 17 votes. The small vote margin triggers an automatic recount which will start on Monday morning. The Secretary of State’s office has complained about improprieties including a discrepancy in residential requirements. A Broomfield resident for only 22 days can register and vote on state ballot issues, but municipal issues have a 30-day residential requirement. It seems that such a voter received the standard Broomfield ballot rather than a ballot with just state issues. On Nov 4, the day before Election Day, Denver District Judge Michael Martinez rejected a lawsuit against HB 1303 which included the discrepancy in residential requirements in its arguments.

As many of you know, there were 2 Democratic state senators recalled in September, the first legislators recalled in Colorado’s history. Conflicting election laws and a third-party candidate meant that voters didn’t have a mail-ballot election despite HB 1303. In-person elections have lower voter turnout, and the recall elections were no exception. On Wednesday, the day before Thanksgiving, Evie Hudak, another endangered state senator, resigned her seat effective immediately. The recall effort against her was reportedly close to turning in the required number of signatures. If her seat had switched from Democrat to Republican, the state senate would also have switched from a one-seat majority Democratic body to 18-17 majority Republican. The resignation stops the recall effort in its tracks. A vacancy committee will choose a Democratic replacement for her in December before the new legislative session begins.

Sunday, October 27, 2013

Vote on the Ballot Issues!

City of Boulder voters see lots of dollars on the ballot this year: 6 ballot measures on taxes, 2 on debt limits, 1 on bond sales, and 2 others on non-financial topics. The two statewide ballot issues would affect public school funding – A 66 in the classroom and Prop AA in capital construction. The city measures focus on funding transportation and a municipal electric utility. Following passage of Amendment 64 last year, both the state and city have proposed taxes on recreational marijuana. There are no countywide ballot measures this year.

Each ballot issue has its own blog entry if you would like more information or you would like to make comments about the ballot issue. Please limit comments on this blog entry to general comments about the process or the election.

Please vote the whole ballot. In general, the further down the ballot you go, the more your vote counts! At the bottom of this blog entry are other ballot issue websites as well as a link to the County Clerk’s website


VOCABULARY

Amendment = Constitutional change
These can only be changed by a voter-approved constitutional amendment.

Proposition = Statutory change
These can be modified by the Colorado General Assembly.

Initiatives - denoted by numbers
Electors signed petitions to put these on the ballot.

Referenda - denoted by letters
The General Assembly or City Council put these on the ballot with a 2/3 supermajority vote or majority vote respectively.


STATE OF COLORADO BALLOT ISSUES

Amendment 66
Two-Tier Income Tax to Fund Public Education
Creates a two-tiered personal income tax with new funds going to preschool through grade 12 education.
yes

Proposition AA
State Marijuana Taxes
Imposes sales and excise taxes on recreational marijuana.
leaning yes


CITY OF BOULDER BALLOT ISSUES AND QUESTIONS

Ballot Issues -> New taxes
Ballot Questions -> Others

2A
Recreational Marijuana Tax
Imposes sales and excise taxes on recreational marijuana.
against

2B
Transportation Tax
Imposes a new 0.15% sales and use tax for 6 years to fund transportation.
leaning against

2C
Open Space and General Fund Tax
Continues a 0.33% sales and use tax, changing the revenue allocation from all for open space to 2/3 for open space for 16 years and from then on about 1/3 for open space in perpetuity. The remainder of the tax revenue would go into the general fund.
for

2D
Transportation and General Fund Tax
Continues a 0.15% sales and use tax, currently for open space, but reallocates revenue to transportation for 10 years and thereafter to the general fund through 2039.
leaning for

2E
Modify Process to Create a Municipal Electric Utility (Referendum)
Modifies the City Charter language approved by voters in 2011 as ballot measure 2C. See measure 210 below.
for

2F
Negotiated or Private Bond Sales
Allows the City of Boulder to negotiate bond sales rather than be limited to competitive, public bids.
leaning for

2G
Qualifications for Appointment to City Commissions
Allows people who are not city electors to serve on city commissions
leaning against

2H
Extend Moratorium on Oil and Gas Exploration
Extends moratorium on oil and gas exploration until early June 2018.
FOR

310
Modify Process to Create a Municipal Electric Utility (Initiative)
Modifies the City Charter language approved by voters in 2011 as ballot measure 2C. See measure 2E above.
AGAINST


GOVERNMENT SITES

Boulder County Clerk and Recorder – Elections Division
http://www.voteboulder.org
See a sample ballot, check your voter and ballot status, and learn about new registration and voting options. You may also contact the Elections Division at 303 413 7740.

Blue Book Online (Colorado Legislative Council)
http://www.colorado.gov/cs/Satellite/CGA-LegislativeCouncil/CLC/1200536134742
The real name of the Blue Book is the 2013 State Ballot Information Booklet. Available in English and Spanish.

City of Boulder 2013 Election webpage
https://bouldercolorado.gov/elections


MEDIA SITES

Boulder Weekly Election Guide 2013
http://www.boulderweekly.com/article-11846-election-guide-2013-full-list-of-boulder-weekly-endorsements.html

Daily Camera 2013 Voter Guide
http://www.dailycamera.com/local-election-news/ci_24301137/boulder-county-election-guide-candidates-ballot-issues

Denver Post Election 2013 webpage
http://www.denverpost.com/election2013


NON-PARTISAN SITES

League of Women Voters
LWV of Boulder County http://lwvbc.org/
LWV of Colorado (English and Spanish) http://www.lwvcolorado.org

Boulder Chamber of Commerce
http://boulderchamber.com/pages/2013ChamberEyeontheBallot/


CITIZEN SITE

Your Colorado Ballot Initiatives Reference
http://www.coloradoballot.net/


PARTISAN SITES

Libertarian Party of Boulder County
http://lpboulder.org/?page_id=200

Boulder County Republicans
http://bocogop.org/elections-2013/

Boulder County Democratic Party
http://bocodems.org/VotingInfo/BallotIssues2013.aspx

Amendment 66 – Two-Tier Income Tax to Fund Public Education

Amendment 66 proposes a two-tier, personal income tax with new revenue (~$950 million in the first fiscal year) deposited in a separate fund for preschool through grade 12 (P-12) public education. The current, flat income tax rate is 4.63% on federal taxable income. Starting in tax year 2014, the rate would return to the 1990s level of 5% for federal taxable income of $75,000 or less and rise to 5.9% on amounts over $75,000. The $75,000 amount may be adjusted annually to reflect inflation.

This amendment also repeals Amendment 23, placed on the ballot by petition and approved by voters in 2000 to guarantee public education funding increases at 1% above inflation for 10 years and thereafter to keep pace with inflation. Rather, Amendment 66 also requires that at least 43% of state income, sales and excise tax revenue, collected at existing tax rates, be allocated to public education. In the last 13 budget years, the average share spent on P-12 education has been 46%.

Senate Bill 13-213, passed by the General Assembly, proposes a new formula for state and local education funding contingent on voter approval of Amendment 66.

Recommendation: yes

A criticism of Prop 103 in 2011 was that it didn’t go far enough. Amendment 66 is much more ambitious creating a permanent change to income tax rates.

Amendment 23, an initiative to increase public education, has had its text reinterpreted in recent years, resulting in less money going to education than supporters expected. Some people are understandably suspicious that Amendment 66 could also be subject to a future reinterpretation of funding formulas. Another argument stated against Amendment 66, particularly for Boulder, is that Boulder taxpayers will pay more money out than their (relatively wealthy) school district will receive. Finally, some education supporters oppose this measure because they don’t like the 2010 Senate Bill 191 education reforms on testing and teacher accountability that will get funded.

Meanwhile, in May the Colorado Supreme Court ruled 4-2 in Lobato vs State of Colorado that the state’s education funding system is “thorough and uniform” and that the state is not required to spend more on K-12 public education.

As one who doesn't like dedicated taxes, I can tolerate this one because public education is a major expense for state government. By considering the 43% as a minimum for education funding, having a strict limit seems more tolerable. There is always the risk that money may be spent unwisely, SB13-213 has some recordkeeping requirements to improve transparency.


Website for the Yes side (Colorado Commits to Kids)
http://coloradocommits.com/

Website for the No side (Coloradans for Real Education Reform)
http://www.coforrealedreform.com/


Amendment 66 (CONSTITUTIONAL) (Approved Ballot Language)

SHALL STATE TAXES BE INCREASED BY $950,100,000 ANNUALLY IN THE FIRST FULL FISCAL YEAR AND BY SUCH AMOUNTS AS ARE RAISED THEREAFTER BY AMENDMENTS TO THE COLORADO CONSTITUTION AND THE COLORADO REVISED STATUTES CONCERNING FUNDING FOR PRESCHOOL THROUGH TWELFTH-GRADE PUBLIC EDUCATION, AND, IN CONNECTION THEREWITH, INCREASING THE CURRENT STATE INCOME TAX RATE ON INDIVIDUALS, ESTATES, AND TRUSTS AND IMPOSING AN ADDITIONAL RATE SO HIGHER AMOUNTS OF INCOME ARE TAXED AT HIGHER RATES; REQUIRING THE RESULTING INCREASES IN TAX REVENUES BE SPENT ONLY FOR IMPROVEMENTS TO PRESCHOOL THROUGH TWELFTH-GRADE PUBLIC EDUCATION; ALLOWING ALL TAX REVENUES ATTRIBUTABLE TO THIS MEASURE TO BE COLLECTED AND SPENT WITHOUT FUTURE VOTER APPROVAL; REQUIRING AT LEAST 43% OF STATE SALES, EXCISE, AND INCOME TAX REVENUES BE DEPOSITED IN THE STATE EDUCATION FUND; AND REPEALING CERTAIN EXISTING PUBLIC EDUCATION FUNDING REQUIREMENTS?
- YES/FOR
- NO/AGAINST

Proposition AA – State Marijuana Taxes

Amendment 64, which changed the state constitution to permit a recreational marijuana industry, also directed the state legislature to enact an excise tax up to 15% with the first $40 million in annual revenue going to public school construction. The Colorado General Assembly has referred a proposed 15% excise tax on marijuana sold by a cultivation facility as well as a 10% sales tax on retail recreational marijuana to fund regulation of marijuana. The excise tax is not expected to garner $40 million for at least 2 years, but the cost of the tax would be passed on to the retail costumer through a higher sale price. The 10% sales tax is in addition to current state and local sales taxes on retail purchases - 8.21% in the city of Boulder.

Cities and counties which allow retail marijuana sales will receive 15% of the revenue from the 10% sales tax. If approved, Prop AA would allow the General Assembly to increase the sales tax up to 15% without a further vote of the electorate. At a later date, the General Assembly may seek voter approval of a higher excise tax effective in 2017.

Regulation costs of recreational marijuana include funding the Marijuana Enforcement Division which oversees testing, tracking and labeling of marijuana. Added costs for health, education and public safety are also cited by proponents of the sales tax.

Recommendation: leaning yes

Although I don’t favor raising money for public school construction from marijuana tax money and there are still issues with marijuana sales being illegal under federal law, if the good citizens of Colorado want to impose big taxes on marijuana, so be it. Opponents say that the high taxes will drive people to a black market, defeating the financial purpose of legalizing marijuana.

The Campaign to Regulate Marijuana Like Alcohol supported Amendment 64, but alcohol doesn’t have a similar special sales tax as proposed in this ballot issue. On the other hand, the state sales tax on cigarettes is 4.2 cents per cigarette.


Website for the Yes side (Committee for Responsible Regulation)
http://www.yesonpropaa.com

Website for the No side (No on Prop AA Campaign)
http://www.NoOverTaxation.org – It seems the site has gone offline.
http://www.colorado420.com/ (Colorado 420 Coalition)


Proposition AA (STATUTORY) Approved Ballot Language

SHALL STATE TAXES BE INCREASED BY $70,000,000 ANNUALLY IN THE FIRST FULL FISCAL YEAR AND BY SUCH AMOUNTS AS ARE RAISED ANNUALLY THEREAFTER BY IMPOSING AN EXCISE TAX OF 15% WHEN UNPROCESSED RETAIL MARIJUANA IS FIRST SOLD OR TRANSFERRED BY A RETAIL MARIJUANA CULTIVATION FACILITY WITH THE FIRST $40,000,000 OF TAX REVENUES BEING USED FOR PUBLIC SCHOOL CAPITAL CONSTRUCTION AS REQUIRED BY THE STATE CONSTITUTION, AND BY IMPOSING AN ADDITIONAL SALES TAX OF 10% ON THE SALE OF RETAIL MARIJUANA AND RETAIL MARIJUANA PRODUCTS WITH THE TAX REVENUES BEING USED TO FUND THE ENFORCEMENT OF REGULATIONS ON THE RETAIL MARIJUANA INDUSTRY AND OTHER COSTS RELATED TO THE IMPLEMENTATION OF THE USE AND REGULATION OF THE RETAIL MARIJUANA AS APPROVED BY THE VOTERS, WITH THE RATE OF EITHER OR BOTH TAXES BEING ALLOWED TO BE DECREASED OR INCREASED WITHOUT FURTHER VOTER APPROVAL SO LONG AS THE RATE OF EITHER TAX DOES NOT EXCEED 15%, AND WITH THE RESULTING TAX REVENUE BEING ALLOWED TO BE COLLECTED AND SPENT NOTWITHSTANDING ANY LIMITATIONS PROVIDED BY LAW?
- YES/FOR
- NO/AGAINST

City of Boulder 2A - Recreational Marijuana Tax

Just as the state is proposing excise and sales taxes, the city would like to cash in on recreational marijuana sales also. In 2014 this ballot issue would impose an excise tax of 5% and a sales tax of 3.5%. It would also permit City Council to increase each tax up to 10% in future years without voter approval.

As with the sales tax, this sales tax would be in addition to the current sales tax on retail sales. Revenue generated from these taxes would go into the general fund although the stated purpose of the added revenue would be to pay administrative expenses and fund substance abuse programs associated with retail marijuana.

Recommendation: against

Under Prop AA, the city would be entitled to a share of the state sales tax while still getting its regular sales tax on recreational marijuana sales. The state would also pick up much of the regulation cost. If the city didn’t want to be greedy, perhaps it should have conditioned this measure taking effect on the state measure failing to garner a majority.


Registered Issue Committee for the For side (Committee to Regulate Responsibly)
No known website

No known Issue Committee or website for the Against side


CITY OF BOULDER BALLOT ISSUE NO. 2A (Approved Ballot Language)
RECREATIONAL MARIJUANA TAX

SHALL CITY OF BOULDER TAXES BE INCREASED BY ($3,360,000 FIRST FULL FISCAL YEAR DOLLAR INCREASE) ANNUALLY AND BY SUCH AMOUNTS AS ARE RAISED ANNUALLY THEREAFTER BY THE IMPOSITION OF AN EXCISE TAX OF 5 PERCENT IN 2014 AND UP TO 10 PERCENT THEREAFTER ON THE CULTIVATION FACILITY AT THE AVERAGE MARKET RATE AT THE POINT OF TRANSFER FROM THE CULTIVATION FACILITY AND AN ADDITIONAL SALES AND USE TAX OF 3.5 PERCENT IN 2014 AND UP TO 10 PERCENT THEREAFTER ON RECREATIONAL MARIJUANA AS PROVIDED IN ORDINANCE NO. 7916 COMMENCING JANUARY 1, 2014 WITH SUFFICIENT REVENUES FROM THE EXCISE AND SALES AND USE TAX TO BE USED FOR PUBLIC SAFETY, ENFORCEMENT AND ADMINISTRATIVE PURPOSES AND FOR COMPREHENSIVE SUBSTANCE ABUSE PROGRAMS INCLUDING WITHOUT LIMITATION PREVENTION, TREATMENT, EDUCATION, RESPONSIBLE USE, INTERVENTION, AND MONITORING, WITH AN EMPHASIS ON YOUTH, AND WITH THE REMAINDER USED BY THE GENERAL FUND; AND IN CONNECTION THEREWITH, SHALL THE FULL PROCEEDS OF SUCH TAXES AT SUCH RATES AND ANY EARNINGS THEREON BE COLLECTED, RETAINED, AND SPENT, AS A VOTER-APPROVED REVENUE CHANGE WITHOUT LIMITATION OR CONDITION, AND WITHOUT LIMITING THE COLLECTION, RETENTION, OR SPENDING OF ANY OTHER REVENUES OR FUNDS BY THE CITY OF BOULDER UNDER ARTICLE X SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW?
- FOR THE MEASURE
- AGAINST THE MEASURE


See Ordinance 7916 to refer 2A to the voters.
https://www-static.bouldercolorado.gov/docs/Ordinance_7916_Recreational_Marijuana-1-201308271402.pdf

City of Boulder 2B - Transportation Tax

This ballot measure would impose a new 0.15% sales and use tax for 6 years to fund transportation projects. If both 2B and 2D pass, the 0.15% tax revenue would continue through 2029. The City of Boulder has a long list of deferred transportation projects.

Recommendation: leaning against

Fixing potholes should be a core city service and, in line with the 2008 Blue Ribbon Commission report, should be paid for out of general fund monies. We have had a dedicated 0.6% sales and use tax for transportation since 1967, but we shouldn’t create more dedicated taxes nor float 20-year bonds (like ballot issue 2A in 2011) to fund short-term transportation projects.

The city staff and elected officials have felt for some time that transportation is underfunded. The voters renewed sales taxes in 2008 and 2009 while ending earmarking of the revenues. In 2010 they approved an increase in the accommodations tax, also adding to the general fund. Did any of that money go to transportation? If not, what was deemed more important? Perhaps the city should better justify this request for a new tax.

Boulder has a large and complex transportation system with residents and visitors using many modes of transportation. Not surprisingly, there is disagreement on whether current transportation dollars are being well spent. The city’s Transportation Master Plan (TMP) is being updated this year and will look out to 2035. The TMP will no doubt reconsider future projects if 2B (and 2D) don’t pass. Even if only 2C passes, there will eventually be freed-up money in the general fund that could go to transportation.

Sales taxes hit poor people the hardest. Some people have argued that the city should raise transportation funds from drivers, perhaps by increasing parking fees or from their employers through an in-commuter head tax. Originally a Transportation Maintenance Fee was considered, partly because it is deemed more stable, but CU, the federal labs and the school district would have been subject to it and probably would have opposed the ballot measure.


Website for the For side (Moving Boulder Forward)
http://movingboulderforward.org/

Website for the Against side
No known website. Info on opposition website is appreciated.


CITY OF BOULDER BALLOT ISSUE NO. 2B (Approved Ballot Language)
SALES AND USE TAX

SHALL CITY OF BOULDER TAXES BE INCREASED ($4,482,200 FIRST FULL FISCAL YEAR DOLLAR INCREASE ANNUALLY) BY INCREASING THE SALES AND USE TAX BY 0.15 CENTS FOR THE PERIOD OF JANUARY 1, 2014 TO DECEMBER 31, 2019 WITH ALL OF THE REVENUES COLLECTED USED TO FUND TRANSPORTATION CONSTRUCTION AND SERVICES SUCH AS MAINTENANCE OF PAVEMENT, CONSTRUCTION OF TRANSPORTATION INFRASTRUCTURE, TRANSIT SERVICE AND OTHER TRANSPORTATION PURPOSES? AND IN CONNECTION THEREWITH, SHALL THE FULL PROCEEDS OF SUCH TAX AT SUCH RATE AND ANY EARNINGS THEREON BE COLLECTED, RETAINED, AND SPENT, AS A VOTER-APPROVED REVENUE CHANGE WITHOUT LIMITATION OR CONDITION, AND WITHOUT LIMITING THE COLLECTION, RETENTION, OR SPENDING OF ANY OTHER REVENUES OR FUNDS BY THE CITY OF BOULDER UNDER ARTICLE X SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW?
- FOR THE MEASURE
- AGAINST THE MEASURE


See Ordinance 7913 to refer 2B to the voters.
https://www-static.bouldercolorado.gov/docs/Ordinance_7913_0.15_new_tax_for_transportation-1-201308271403.pdf

Transportation Maintenance Fee FAQ (on the city website)
https://bouldercolorado.gov/transportation/transportation-maintenance-fee-faq

Transportation Master Plan – 2013 update process
https://bouldercolorado.gov/transportation/tmp

City of Boulder 2C - Open Space and General Fund Tax

Boulder voters love “open space” and in 1967 became the first community in the nation to tax itself to acquire and preserve open space. The original sales and use tax dedicated to open space has been increased twice:
1967: 0.40%
1990: 0.73% (additional 0.33%)
2004: 0.88% (additional 0.15%)
Parks and Rec, a different, but somewhat related, department, has also had separate dedicated sales taxes over the years.

Currently, the 0.33% sales tax is set to expire at the end of 2018. (See ballot issue 2D regarding the 0.15% sales tax which is set to expire at the end of 2019.) If this ballot measure is approved, the 0.33% sales tax would never expire, but would be reallocated for 16 years so that 2/3 of it goes for open space and 1/3 to the general fund. Thereafter, the ratio would essentially flip with 0.10% going for open space and the remaining 0.23% going into the general fund.

Recommendation: for

Each department in the city has a Master Plan with 3 levels of planning depending on funding available: a Fiscally Constrained Plan for a minimum amount of funding, an Action Plan requiring a higher level of funding and a Vision Plan including the most ambitious ideas. With a successful extension of the 0.33% and 0.15% sales taxes, the Open Space Department would have hopes of attaining its Vision Plan while most city departments are operating under a Fiscally Constrained Plan. Let’s get the city’s budget better balanced and then go back to the voters to ask for more open space revenue if we still want it.


Website for the For side (Moving Boulder Forward)
http://movingboulderforward.org/

Website for the Against side
No known website. Info on opposition website is appreciated.


City of Boulder Ballot Question 2C (Approved Ballot Language)
Sales and Use Tax Extension

Without raising additional taxes, shall the existing 0.33 cent City sales and use tax for the acquisition and preservation of open space land, approved by the voters by Ordinance No. 5222, be extended beyond the current expiration date of December 31, 2018; and beginning January 1, 2019 designating 0.22 cent of every dollar taxed to fund the acquisition and preservation of open space land; 0.11 cent of every dollar taxed to fund services such as fire, police, libraries, parks, recreation, human services and other general fund purposes; and beginning January 1, 2035 designating 0.10 cent of every dollar taxed to fund the acquisition and preservation of open space land; and 0.23 cent of every dollar taxed to fund services such as fire, police, libraries, parks, recreation, human services and other general fund purposes as a voter approved revenue change?
- For the measure
- Against the measure


See Ordinance 7912 to refer 2C to the voters.
https://www-static.bouldercolorado.gov/docs/Ordinance_7912_0.33_sales_tax_for_open_space_and_general_government-1-201308271450.pdf