Colorado
New Colorado tax credit could lift 50,000 children out of poverty, is latest to tap TABOR surplus
Boasting that child poverty in Colorado would soon be cut nearly in half, Gov. Jared Polis on Friday signed a large new tax credit for low-income families into law.
The ceremony put an underline on a legislative session that featured state policymakers looking again and again to the state surplus to flatten inequalities. Lawmakers passed dozens of new tax credits this year that tapped into massive revenues the state couldn’t keep and otherwise would have to return through refund checks.
The new family affordability tax credit that received Polis’ signature is by far the largest individual tax credit in terms of cost. It is also, advocates say, among the most impactful.
They expect it to lift more than 50,000 children out of poverty.
The new law, passed as House Bill 1311, will use roughly $700 million per year that comes in over the state revenue growth limit set by the Taxpayer’s Bill of Rights, or TABOR. It will send the poorest Colorado families $3,200 per child younger than 6. The amount of the credit will scale down as children grow older and family incomes increase, eventually zeroing out at $85,000 per year for joint filers and once children turn 17.
“Kids don’t choose who their parents are or what their income level is — or how they grow up,” Polis said during the bill signing ceremony at a Denver preschool. “Making sure kids everywhere have food on the table (and) have the support that they need to grow up is a big deal.”
The child tax credit stacks atop others passed or expanded by the legislature this year, including an increase to the state’s match of the Earned Income Tax Credit. In all, the new policies tap billions of dollars from projected TABOR surpluses in coming years that would have to be returned to taxpayers one way or another.
Democratic lawmakers, often over dissents from Republicans, opted mostly for directed credits rather than the general refunds that long have been typical in the state’s boom years.
How the new tax credits work
The Colorado Fiscal Institute, a progressive think tank involved in crafting the legislation, predicts families will receive as much as $4,400 a year per child 5 and younger through an expanded child care tax credit and the new family affordability tax credit.
Throw in the Earned Income Tax Credit increase, which matches up to 50% of the federal EITC that sends money to low-income households, and Colorado families could see significant financial help. The state EITC match doubled this year, amounting to nearly $1,900 extra for very-low-income working families with three or more children.
The credits depend on consistent TABOR surpluses and will be scaled down in less robust economic times. Caroline Nutter, the legislative coordinator for the think tank, estimates the credit changes will reduce the number of children in poverty — about 133,000 kids — by 40% in years when the credits are fully funded.
“What we’re really trying to do there is make sure families, even those making more than the median household income in Colorado, are receiving help,” Nutter said. “Raising kids in this state is not cheap. Even if you’re making $100,000 a year, it’s still a big cost to bear.”
The credits, while stacking together, work differently:
- The EITC expansion is based on a federal tax credit worth between $600 (for individuals without children) and $7,430 (for families with three or more children). Qualification limits range from $17,640 per year in adjusted gross income for a single person up to $63,398 for joint filers. Colorado will match up to 50% of the federal credit if state growth is on a solid footing.
- The child care tax credit covers a percentage of child care costs, depending on household income. At most, the federal credit covers about $1,050 for one dependent child and up to $2,100 for two or more. The Colorado credit matches up to 70% of that for households with incomes of $60,000 or less.
- The new family tax credit scales down based on family income as well as the ages and number of children. Single filers making $15,000 or less per year in adjusted gross income — and joint filers making $25,000 or less — will receive up to $3,200 for each child younger than 6 and, for children ages 6 to 16, up to $2,400. The credit amounts decrease as incomes rise, with a cap of $75,000 for individual filers and $85,000 for joint filers.
Coloradans may benefit from other credits, too — notably a $1,500 credit for child care workers, home health care workers, personal care aides and certified nursing assistants making less than $75,000 per year that Polis also signed into law Friday. Earlier this week, he signed off on a new tax credit that covers two years of in-state college tuition for students whose families make $90,000 a year or less.
On hand at Friday’s ceremony was U.S. Sen. Michael Bennet, who has championed a short-lived federal child tax credit that he’s hoping to revive in Congress next year by leveraging the looming expiration of tax cuts. He praised the state’s new credit.
“The family affordability tax credit testifies to the idea that we don’t have to accept those levels of childhood poverty as a permanent state of our economy, or our democracy, or our society,” he said. “I think the national leadership you’ve shown here is something that we will carry back to Washington, D.C. — to be able to say that because of your leadership, governor, Colorado now has the best anti-poverty legislation of any state in America.”
Do new credits undermine TABOR?
Together, Colorado’s new tax credits represent a reimagining of how state officials handle TABOR surpluses — while trying to stay within the constraints of the constitutional amendment passed by voters more than 30 years ago.
Traditionally, state revenue that’s over the cap would be returned to Coloradans largely through a six-tier system that gave higher-income households a bigger share under the idea they paid more in taxes. Nutter called that approach “wasteful” because it directs money to people who already have the most resources.
The Common Sense Institute, a nonpartisan, free enterprise-oriented think tank, noted that the money returned through tax credits still stays with Colorado taxpayers, versus going into government programs. But a CSI report on tax credits argues that the new approach “broadly undermines TABOR’s intent” by divorcing refunds from taxes paid.
In coming years, upwards of $1 billion per year that would typically be refunded through the six-tier system will instead go to targeted tax credits, according to its report.
Lang Sias, a former state representative and now a research fellow at the think tank, said the legislature “has effectively substituted its judgment on how those tax dollars should be spent over that of taxpayers who would otherwise see the refunds.”
“We’re moving away from a TABOR refund and toward a TABOR redistribution,” he said in an interview.
He didn’t weigh in on the merits of the new policies but questioned lawmakers’ decision to tie the new tax credits to the state’s surplus and, in some cases, to give them sunsets. Assuming they’re as beneficial as proponents say, both cases mean they may not be permanent policies.
The new tax credits also aren’t the only way state officials responded to a foreseeable future of $1 billion-plus surpluses. Polis fought for a $450 million income tax cut, which predominantly will benefit wealthier Coloradans, and a decrease in the state sales tax rate during economic booms.
Taxpayers can also continue to expect flat TABOR refunds when they file their taxes — albeit closer to the $115 range than the $700-plus amounts of recent years.
Nutter argued that while the shift will affect income brackets differently compared to the prior system, people across the spectrum still will see more money in their pockets — from the credits or, for wealthier people, through the tax cuts.
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Next week is the annual gathering of “water buffaloes” in Las Vegas. It’s the Colorado River Water Users Association convention. About 1700 people will attend, but probably around 100 of them are the key people—the government regulators, tribal leaders, and the directors and managers of the contracting agencies that receive Colorado River water.
Anyone who is paying attention knows that we are in critical times on the river. Temporary agreements on how to distribute water during times of shortage are expiring. Negotiators have been talking for several years but haven’t been able to agree on anything concrete.
I’m just an observer, but I’ve been observing fairly closely. Within the limits on how much information I can get as an outsider, I’d like to propose some principles or guidelines that I think are important for the negotiation process.
See also
- When Hoover Dam was proposed, the main debate was over whether the federal government or private concerns would operate it. Because the federal option prevailed, water is delivered free to contractors. Colorado River water contractors do not pay the actual cost of water being delivered to them. It is subsidized by the U.S. government. As a public resource, Colorado River water should not be seen as a commodity.
- The Lower Basin states of Arizona, California, and Nevada should accept that the Upper Basin states of Colorado, New Mexico, Utah, and Wyoming are at the mercy of Mother Nature for much of their annual water supply. While the 1922 Colorado River Compact allocates them 7.5 million acre-feet annually, in wet years, they have been able to use a maximum of 4.7 maf. During the long, ongoing drought, their annual use has been 3.5 maf. They shouldn’t have to make more cuts.
- However, neither should the Upper Basin states be able to develop their full allocation. It should be capped at a feasible number, perhaps 4.2 maf. As compensation, Upper Basin agencies and farmers can invest available federal funds in projects to use water more efficiently and to reuse it so that they can develop more water.
- Despite the drought, we know there will be some wet years. To compensate the Lower Basin states for taking all the cuts in dry years, the Upper Basin should release more water beyond the Compact commitments during wet years. This means that Lake Mead and Lower Basin reservoirs would benefit from wet years and Lake Powell would not. In short, the Lower Basin takes cuts in dry years; the Upper Basin takes cuts in wet years.
- Evaporation losses (water for the angels) can be better managed by keeping more of the Lower Basin’s water in Upper Basin reservoirs instead of in Lake Mead, where the warmer weather means higher evaporation losses. New agreements should include provisions to move that water in the Lower Basin account down to Lake Mead quickly. Timing is of the essence.
- In the Lower Basin states, shortages should be shared along the same lines as specified in the 2007 Interim Guidelines, with California being last to take cuts as Lake Mead water level drops.
- On the home front, IID policy makers should make a long-term plan to re-set water rates in accord with original water district policy. Because IID is a public, non-profit utility, water rates were set so that farmers paid only the cost to deliver water. Farmers currently pay $20 per acre foot, but the actual cost of delivering water is $60 per acre foot. That subsidy of $60 million comes from the water transfer revenues.
- The SDCWA transfer revenues now pay farmers $430 per acre-foot of conserved water, mostly for drip or sprinkler systems. Akin to a grant program, this very successful program generated almost 200,000 acre-feet of conserved water last year. Like any grant program, it should be regularly audited for effectiveness.
- Some of those transfer revenues should be invested in innovative cropping patterns, advanced technologies, and marketing to help the farming community adapt to a changing world. The IID should use its resources to help all farmers be more successful, not just a select group.
- Currently, federal subsidies pay farmers not to use water via the Deficit Irrigation Program. We can lobby for those subsidies to continue, but we should plan for when they dry up. Any arrangement that rewards farmers but penalizes farm services such as seed, fertilizer, pesticide, land leveling, equipment, and other work should be avoided.
- Though the IID has considerable funding from the QSA water transfers, it may need to consider issuing general obligation bonds as it did in its foundational days for larger water efficiency projects such as more local storage or a water treatment plant to re-use ag drain water.
Much progress has been made in using water more efficiently, especially in the Lower Basin states, but there’s a lot more water to be saved, and I believe collectively that we can do it.
Colorado
Colorado mother says Lakewood crash killed son, left 2 of her children critically injured as driver is arrested
A mother is grieving after a crash in the Denver metro area last weekend left her son brain-dead and two of her other children fighting for their lives.
Lakewood police say 22-year-old Andrew Logan Miller has been arrested in connection with the crash, which happened Dec. 6 around 7:30 p.m. near Kipling Parkway and West 6th Avenue.
Police say Miller was driving an SUV southbound on Kipling Parkway at a high rate of speed when it collided with a bus carrying a wrestling team from Central High School, which is located in Grand Junction in Mesa County.
Sixteen people were taken to hospitals.
Among the injured were three siblings who were riding inside the SUV.
On Friday, their mother, Suleyma Gonzalez, identified them as Julio Gonzalez, 18, Analelly Gonzalez, 17, and Christopher Gonzalez, 14.
Analelly and Christopher remain in critical condition. Julio will never wake up.
“I didn’t want to believe it, until they had to do the second testing where they didn’t find blood going through his brain,” she said. “My other two are in comas.”
Gonzalez said doctors ultimately declared Julio brain-dead.
She describes her children as disciplined students and ROTC members with plans for the future.
“Two of my kids were going to graduate this year,” she said. “No drugs. No alcohol. They were good kids.”
Gonzalez confirmed that Miller, who was driving the SUV at the time of the crash, was her daughter’s boyfriend.
“I know he loved my daughter,” she said. “I don’t think he did this on purpose or intentionally. It was an accident.”
Police say the investigation is ongoing, but believe speed played a major role in the crash.
Miller was arrested Wednesday night and is facing multiple charges, including:
• Vehicular assault (7 counts)
• Speeding 40 mph or more over the limit
• Reckless driving
• Child abuse (2 counts)
• Reckless endangerment
“My kids know when you get in somebody’s car, there’s always a risk. Always,” she said.
Julio’s organs will be donated. He’s on life support, while the hospital searches for matches.
“He wanted to give to the world,” she said. “Now that I can’t get him back, we want to give life to somebody else.”
Miller is currently being held in the Denver County Jail and is awaiting transfer to the Jefferson County Jail. His bond and court appearance have not yet been announced.
Lakewood police say the investigation remains active.
Gonzalez, a single mother of five, says her focus now is on her surviving children and getting clarity.
“I just want answers.”
DENVER, Colo. (KKTV) – The Justice Department’s Civil Rights Division announced Thursday a lawsuit against the Colorado Secretary of State for failure to produce state voter information.
Secretary of State Jena Griswold claims the DOJ sent a “broad” request for the voter registration rolls on May 12.
Griswold says her office complied with the request and “shared the publicly available data consistent with applicable law.” However, the lawsuit against Griswold says that her office did not respond to the letter.
Griswold sent a letter in November signed by several Secretaries of State to the DOJ and the U.S. Department of Homeland Security (DHS) requesting clarification on how the data would be used, but she claims neither replied to the questions in the letter.
The lawsuit goes on to allege that DOJ attorney Eric Neff followed up by emailing Secretary Griswold on Dec. 1, requesting Colorado’s Statewide Voter Registration list.
Griswold said this request asked the office to share unredacted voter data, including a voter’s full name, date of birth, residential address, and complete state driver’s license number or the last four digits of their Social Security number.
Griswold responded by email on Dec. 3, stating, “We received your request. We will not be producing unredacted voter files or signing the MOU,” the complaint alleges.
The lawsuit cites the Civil Rights Act, which gives the United States Attorney General the power to demand the production, inspection, and analysis of the statewide voter registration lists.
The DOJ is requesting a judge to declare that Griswold violated the Civil Rights Act and to order her to provide the current electronic copy of Colorado’s statewide voter registration list.
Griswold’s office released the following statement:
The DOJ released the following statement regarding the lawsuit:
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