Bill Summary for Bill Number SB09-228

Date: 02/24/2009

Final
BILL SUMMARY for SB09-228

SENATE COMMITTEE ON FINANCE

Votes: View-->	Action Taken:
Adopt a conceptual amendment to strike the safety Adopt Amendment L.001 (Attachment E). The motion f Adopt Amendment L.002 (Attachment F). The motion Adopt Amendment L.003 (Attachment G). The motion Adopt Amendment L.005 (Attachment H). The motion f Adopt Amendment L.006 (Attachment I). The motion Refer Senate Bill 09-228 to the Committee of the W	FAIL FAIL FAIL FAIL FAIL FAIL PASS

02:17 PM -- Senate Bill 09-228

Senator Morse, prime sponsor, presented Senate Bill 09-228. The bill repeals the six percent limit on General Fund appropriations. The bill also repeals the following provisions: the automatic SB 97-1 diversion from the General Fund to the Highway Users Tax Fund (HUTF); the HB 02-1310 automatic transfers from the General Fund to the HUTF and the Capital Construction Fund; and the six percent limit on "off the top" appropriations from HUTF to the State Patrol and the Ports of Entry. In addition, the bill modifies statutes that are contingent on the six percent limit in General Fund appropriations.

Senator Morse stated that Senate Bill 09-228 eliminates the six percent limit, known as "Arveschoug/Bird." He also provided background on the history of Article X, Section 20 of the Colorado Constitution, also known as TABOR, stating that by law any tax revenue collected must returned to the taxpayers. Senator Morse also discussed Referendum C. He said that regardless of what is happening in the Colorado economy, under current law, the General Assembly must apply the six percent limit. Senator Morse explained how much the General Assembly could spend in hypothetical situations applying the six percent limit and provided reasons why he supports the bill.

02:29 PM

Senator Morse responded to questions from the committee about the Colorado Constitution and how the six percent limit has been interpreted. Discussion ensued about the legislature removing the six percent limit, a memorandum prepared by former Justice Jean Dubofsky regarding the six percent limit, and the Taxpayer's Bill of Rights. He also responded to questions about the effects the six percent limit has on General Fund revenue and illustrated several points with a chart that he displayed.

02:34 PM

Senator Morse responded to questions from Senator Mitchell, who was sitting in on the committee's hearing, about the application of the six percent limit and meaning of "other limits" language in TABOR.

02:42 PM

Discussion ensued about growth, revenue limits, and spending caps affecting appropriations. Senator Morse responded to questions from the committee about the mill levy and the School Finance Act, and also about bringing new tax increases to the people for a vote. The committee also discussed how the six percent limit affects the General Assembly's ability to set priorities.

02:48 PM

Discussion ensued about how adjusting the six percent limit might have changed the amount of funding for transportation and the General Assembly's priorities and spending in past fiscal years.

02:56 PM

There was discussion about the language in the current law that allows the General Assembly to spend more than six percent during an economic emergency. Senator Morse also responded to questions about Amendment 23.

03:00 PM

The committee began public testimony. The following people testified on the bill:

03:00 PM -- Mr. Ed Kahn, representing the Colorado Center on Law and Policy, testified in support of the bill. He provided background about the memorandum on the six percent limit, legal issues, and TABOR.

03:04 PM -- Ms. Carol Hedges, representing the Colorado Fiscal Policy Center, testified in support of the bill. Ms. Hedges provided discussed how Colorado ranks in many areas of policy in direct spending as compared with other states.

03:08 PM -- Mr. Wade Buchanan, representing the Bell Policy Center, testified in support of the bill. He distributed a statement from the Bell Policy Center in support of the bill (Attachment B). He discussed how the six percent limit affects the ability of the General Assembly to save funds for difficult times.

The three witnesses responded to questions from the committee about the opion on the six percent limit and TABOR.

The committee also received a letter supporting the bill from the Colorado Coalition for the Medically Underserved (Attachment C) and a letter supporting the bill from Oral Health Awareness Colorado (Attachment D).

03:19 PM -- Ms. Kelly Shanahan, representing the Colorado Consumer Health Initiative, testified in support of the bill. She discussed the impacts of health care costs on individuals in the state.

03:23 PM -- Ms. Marijo Rymer, representing the Arc of Colorado, testified in support of the bill. She provided background information about developmentally-disabled individuals in Colorado.

Committee discussion ensued about how changing the six percent limit would affect highway funding.

03:34 PM -- Ms. Jane Urschel, representing the Colorado Association of State Boards, testified in support of the bill. She discussed spending formulas and fiscal policy.

03:36 PM -- Ms. Nina Lopez, representing the Colorado's Childrens Campaign, testified in support of the bill. She provided background information about the number of children in Colorado living in poverty.

03:39 PM -- Ms. Patty Bortz, representing Great Education Colorado, testified in support of the bill. She provided her thoughts about education and setting fiscal priorities.

03:42 PM -- Mr. Aaron Wylie, representing the Associated Students of Colorado, testified in support of the bill. He provided his perspective about how students are affected by state spending decisions.

Discussion ensued about the impacts of the spending limit on individuals in Colorado.

03:53 PM -- Ms. Gretchen McComb, representing the Women's Foundation of Colorado, testified in support of the bill. She discussed the role of non profit organizations and the services these entities provide.

03:55 PM -- Mr. Cameron Graham, representing AARP, testified in support of the bill and provided his thoughts about fiscal issues.

03:58 PM -- Mr. Daniel Chapman, also representing AARP, testified in support of the bill.

03:59 PM -- Mr. Bill Kirton, representing the Interfaith Alliance, testified in support of the bill. He provided his thoughts about fiscal policy decisions and higher education.

04:01 PM -- Mr. Wayne Knox, representing the Colorado Senior Lobby, testified in support of the bill.

04:04 PM

The committee recessed for a call of the Senate.

05:24 PM

The committee reconvened, and continued with public testimony.

05:24 PM -- Mr. Brad Young, representing himself, testified in support of the bill. Mr. Young provided perspective as a former legislator about Colorado's fiscal issues and working with the six percent limit. He discussed the growth of the economy and stated that he is concerned about inflation.

05:39 PM

Mr. Young responded to questions about the impacts of repealing the six percent limit on transportation. The committee also discussed the overall budget and spending priorities of the General Assembly.

05:49 PM

Mr. Young also responded to questions from Senator Mitchell about inflation, the rate of growth, and TABOR. Discussion ensued about whether inflation has ever surpassed the six percent limit, and whether it will in the future.

05:58 PM -- Ms. Marty Neilson, representing the Colorado Union of Taxpayers, testified against the bill. She provided her thoughts about the six percent limit, TABOR, and bringing issues to a vote of the people of Colorado. Ms. Neilson responded to questions from the committee about transportation and other issues.

06:03 PM

Senator Sandoval closed public testimony.

Committee members were provided with Amendments L.001 (Attachment E), L.002 (Attachment F), L.003 (Attachment G), L.005 (Attachment H), and L.006 (Attachment I).


BILL:	SB09-228
TIME:	06:04:03 PM
MOVED:	Hudak
MOTION:	Refer Senate Bill 09-228 to the Committee of the Whole. The motion passed 4-3.
SECONDED:
		VOTE
	Brophy	No
	Heath	Yes
	Isgar	Yes
	King K.	No
	Scheffel	No
	Hudak	Yes
	Sandoval	Yes

Final YES: 4 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	SB09-228
TIME:	06:06:36 PM
MOVED:	King K.
MOTION:	Adopt Amendment L.005 (Attachment H). The motion failed 3-4.
SECONDED:
		VOTE
	Brophy	Yes
	Heath	No
	Isgar	No
	King K.	Yes
	Scheffel	Yes
	Hudak	No
	Sandoval	No

Not Final YES: 3 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	SB09-228
TIME:	06:11:14 PM
MOVED:	King K.
MOTION:	Adopt Amendment L.001 (Attachment E). The motion failed 3-4.
SECONDED:
		VOTE
	Brophy	Yes
	Heath	No
	Isgar	No
	King K.	Yes
	Scheffel	Yes
	Hudak	No
	Sandoval	No

Not Final YES: 3 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	SB09-228
TIME:	06:14:27 PM
MOVED:	King K.
MOTION:	Adopt Amendment L.002 (Attachment F). The motion failed 3-4.
SECONDED:
		VOTE
	Brophy	Yes
	Heath	No
	Isgar	No
	King K.	Yes
	Scheffel	Yes
	Hudak	No
	Sandoval	No

Not Final YES: 3 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	SB09-228
TIME:	06:16:29 PM
MOVED:	King K.
MOTION:	Adopt Amendment L.003 (Attachment G). The motion failed 3-4.
SECONDED:
		VOTE
	Brophy	Yes
	Heath	No
	Isgar	No
	King K.	Yes
	Scheffel	Yes
	Hudak	No
	Sandoval	No

Not Final YES: 3 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	SB09-228
TIME:	06:19:33 PM
MOVED:	King K.
MOTION:	Adopt Amendment L.006 (Attachment I). The motion failed 3-4.
SECONDED:
		VOTE
	Brophy	Yes
	Heath	No
	Isgar	No
	King K.	Yes
	Scheffel	Yes
	Hudak	No
	Sandoval	No

Not Final YES: 3 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	SB09-228
TIME:	06:25:30 PM
MOVED:	Brophy
MOTION:	Adopt a conceptual amendment to strike the safety clause on pages 37 and 38 of the introduced bill. The motion failed 3-4.
SECONDED:
		VOTE
	Brophy	Yes
	Heath	No
	Isgar	No
	King K.	Yes
	Scheffel	Yes
	Hudak	No
	Sandoval	No

Not Final YES: 3 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: FAIL

06:28 PM

The committee recessed.