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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(COLORADO SPRINGS) — Efforts are underway to bring more homes to Colorado Springs, just days after housing advocates pointed out some shortfalls. The Pikes Peak Housing Network says El Paso County has a housing deficit of between 13,000 and 27,000 homes right now. The organization says affordable housing remains a big need, but Colorado Springs officials say the community is pushing back on some developments.
Colorado Springs Mayor Yemi Mobolade said housing “Will continue to be a crisis, but it’s also an opportunity.”
“Homes have risen far more in price than income; three times more,” said Pikes Peak Housing Network Executive Director Jill Gaebler.
Gaebler presented to the Colorado Springs City Council on Monday and said El Paso County is not building enough homes that the average person can afford right now. She said the median home price in the county currently sits around $500,000.
“The average age of the first-time homebuyer has increased to 40 years old. Just a decade ago, it was 31 years old,” said Gaebler, “we’re renting longer, getting that nest egg ready to purchase a home and put down a deposit.”
In Colorado Springs, Mayor Mobolade says the city is working on the issue.
“We’ve invested $230 million in affordable housing projects… But what I’m really proud of is 3000 homes since I got into office, affordable homes,” said Mobolade.
City of Colorado Springs Media Relations Manager Max D’Onofrio said in a statement to FOX21 the city is working to advance several initiatives, including “developing a Housing Action Plan; investing in new affordable and attainable housing through federal funds and private‑activity bonds; supporting rehabilitation programs for low‑income seniors; providing tenant‑based rental assistance; strengthening partnerships with the Colorado Springs Housing Authority; and maintaining the City’s eligibility for Proposition 123 to keep more projects moving forward.”
“We will continue to ensure that every money from the federal government that passes through the city and every money from the state that passes through the city will be prioritized for housing that targets the area median income that our residents need,” said Mobolade.
Gaebler says her organization helps builders who construct all types of homes connect with decision makers when seeking project approval. But she and the mayor say affordable housing often gets pushback from the community.
“It’s getting harder and harder for those projects to get approved because community members fight and oppose a lot of these housing developments,” said Gaebler.
“We’re seeing a pushback from our community on just about every affordable housing project,” said Mobolade, “I know people get hung up on that term. We’re not talking about Section 8 lower-income homes, not that that doesn’t matter, that matters. We’re talking about teachers, nurses, firefighters, police officers, military members that can’t afford to live in this city.”
D’Onofrio also stated, while the city focuses on affordable rentals and attainable homeownership, it is also aiming to preserve neighborhood character and protect quality of life.
The city did not give a date on when it is aiming to complete the Housing Action Plan, which it says is currently in the works.
Colorado
Glendale rejects Colorado Boulevard Bus Rapid Transit plan; CDOT data shows some commute times could double
Glendale city leaders are forcefully opposing Colorado’s proposed Bus Rapid Transit project on Colorado Boulevard, warning the plan could dramatically worsen traffic for drivers while delivering only modest transit gains.
Last week, Glendale City Council voted unanimously in favor of a resolution recommending “no build” for the Colorado Department of Transportation’s proposed Bus Rapid Transit, or BRT, project along a seven-mile stretch of Colorado Boulevard.
“Hell no,” Glendale City Manager Chuck Line said in an interview with CBS Colorado.
“The juice is not worth the squeeze, not by a little, but by a long shot,” Line said.
The resolution cites concerns about increased congestion and what Glendale leaders described as negative impacts that outweigh the project’s forecasted increases in bus ridership and reductions in transit travel times.
And some of CDOT’s own projections appear to support at least part of Glendale’s concerns.
According to agency data reviewed by CBS Colorado, one proposed configuration featuring center- and side-running bus lanes would double southbound commute times for drivers traveling the full 7-mile corridor — from about 25 minutes to roughly 50 minutes.
Another option using side-running lanes would increase travel times by about 40%, according to CDOT projections.
Drivers traveling shorter distances would likely experience smaller delays.
CDOT spokesperson Tamara Rollison suggested for people not wanting to spend more time stuck in Colorado Boulevard traffic, “Busses could be a viable option to take instead of your vehicle.”
“The plans they are offering,” said Line, “are so extreme and have such a big impact on millions of residents of this area that I don’t think they should be considering any of these three plans and should go back to the drawing board.”
CDOT is studying the BRT project as a way to improve transit service and safety along Colorado Boulevard between 40th Avenue and Hampden Avenue. About 1 mile of the corridor runs through Glendale.
The agency is considering several alternatives, including side-running bus lanes, center-running bus lanes, and mixed-flow traffic. No final decision has been made, and the project does not yet have a finalized cost estimate. CDOT hopes the eventual design will reduce crashes, improve traffic flow, and speed up bus service.
“A critical goal of this project is to improve safety as Colorado Boulevard is on the High Injury Network and has one of the highest crash rates and road-related fatalities in the region,” said Rollison.
CDOT data shows all of the proposed options would increase bus speeds along the corridor by roughly 20% to 30%.
Part of that improvement would come from simply reducing the number of bus stops. There are currently about 50 stops along the 7-mile corridor. Under the proposed BRT plans, that number would be cut to approximately 20.
State data also shows roughly 2,800 people currently ride buses along the Colorado Boulevard corridor each day. CDOT forecasts that number could rise to about 6,000 daily riders under a BRT system.
But Line argues the tradeoff could create ripple effects far beyond Colorado Boulevard itself.
He said prioritizing north-south traffic flow would likely require longer green lights on Colorado Boulevard, leading to longer red lights — and backups — on east-west streets.
“If that convenience is disrupted,” said Line, “it could have a significant impact on our business community.”
Glendale is not alone in its concerns. The Hilltop Neighborhood Association recently met with CDOT representatives to discuss the proposed changes.
“The success of this project should not be measured only by bus ridership,” said association president Courtney Mamuscia. “It should also be measured by whether nearby neighborhoods remain safe, livable, and protected from cut-through traffic.”
Residents worry that reducing lanes on Colorado Boulevard could divert more traffic onto neighborhood streets.
“Most residents,” said Mamuscia, “are skeptical of the current direction.”
She said many Hilltop residents share Glendale’s concerns that increasing bus ridership may not justify disruptions for tens of thousands of daily drivers.
CDOT has scheduled an open house on the Colorado Boulevard BRT project for Wednesday, May 13, from 5 p.m. to 7 p.m. at the Clayton Early Learning Center, 3801 M.L.K. Jr. Blvd. in Denver. People who are interested but can’t attend can take an online survey on a special section of CDOT’s website.
“We are still in the planning process, figuring out what is the best solution for Colorado Boulevard,” said Rollison, “and we haven’t gotten there yet.”
Colorado
Colorado lawmakers have ‘deep concerns’ about federal government’s wildfire preparedness amid drought
Colorado members of Congress want answers about how prepared federal agencies like the U.S. Forest Service are for the elevated wildfire risk this year.
U.S. Sen. Michael Bennet and Rep. Joe Neguse sent a letter in April to Agriculture Department Secretary Brooke Rollins and Interior Department Secretary Doug Burgum, emphasizing that the widespread drought and historically low snowpack across the West are expected to fuel wildfire risk.
“As we approach the summer months, we write to express our deep concerns about these conditions and respectfully implore your agencies to take immediate actions to better prepare for unprecedented wildfire risks,” the lawmakers wrote.
The Department of Agriculture houses the Forest Service, which has the nation’s largest wildland firefighting force, while the Department of the Interior houses the Bureau of Land Management and the newly-established U.S. Wildland Fire Service.
Neguse represents Colorado’s second congressional district, which includes parts of northwest Colorado, where drought conditions are among the worst in the country. Colorado wildfire leaders have raised concerns that the widespread drought conditions could make the northwestern part of the state a “bullseye” for fire activity this summer.
In the letter, the lawmakers requested that the federal departments increase cooperative preparedness efforts with local and state governments and proactively position resources in the West where drought conditions are the worst.
The letter also calls on both departments to publicly release staffing levels for the coming wildfire season, including the number of firefighters that have been hired and how many staff have incident management qualifications — better known as “red cards” — that allow them to assist on wildfires.
Rollins published a memo on April 29 stating that the Department of Agriculture plans to prioritize initial attack and use a “full suppression strategy” this wildfire season. The Forest Service can mobilize 28,000 wildfire responders and “over 22,000 contracted resources” to respond to fires, she said. The memo did not state how many firefighters the department has hired ahead of the coming wildfire season.
The Interior Department employed about 5,700 wildland fire personnel last year and “anticipates a similar staffing level to this year,” the department said in an email Tuesday.
The Department of Agriculture did not immediately respond Tuesday to a request for comment on the lawmakers’ letter.
Both Neguse and Bennet have previously raised concerns that the Interior and Agriculture departments lost hundreds of red-card holders last year when President Donald Trump’s administration axed thousands of jobs and offered early retirements to employees across the federal government. Just weeks after the cuts, Forest Service Chief Tom Schultz called for red-carded employees to “come back” to the agency.
The lawmakers’ letter also seeks more information about how the administration plans to prevent ongoing reorganizations at both federal departments from impacting preparedness for the wildfire season.
The Forest Service last month announced that it will undergo a “sweeping restructuring” that will relocate its headquarters from Washington, D.C., to Salt Lake City. Meanwhile, Burgum in January ordered that firefighting forces across the Interior Department be consolidated into the new Wildland Fire Service.
Both Burgum and Rollins have claimed that the reorganization efforts will not impact the coming wildfire season.
“The unification of the Interior Department’s wildland fire management programs is being implemented in deliberate phases to ensure continuity of operations and readiness for wildfire activity in 2026,” the Department of Interior said in a statement. “Current firefighting capabilities remain fully in place, and there will be no gap in response capacity.”
In February, Bennet called for Burgum to “halt” the formation of the Wildland Fire Service. Both he and Neguse have also called on the administration to ramp up its wildfire mitigation work ahead of the coming fire season, after an analysis of publicly available data published late last year found that wildland mitigation efforts in the West have declined by 38% since Trump took office.
In their latest letter, Neguse and Bennet wrote that the Agriculture and Interior departments are “integral partners” in responding to wildfires.
“We urge you to take immediate steps to maximize early detection of wildland fires and reduce any delays to ensure that federal resources are prepared to respond efficiently,” they wrote.
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