Final
STAFF SUMMARY OF MEETING
HOUSE
COMMITTEE ON
FINANCE
Date:
03/15/2005
ATTENDANCE
Time:
08:31 AM
to
08:45 AM
Benefield
X
Cloer
E
Place:
HCR 0107
Crane
X
Frangas
X
This Meeting was called to order by
Garcia
X
Representative
Vigil
Jahn
X
Marshall
X
This Report was prepared by
Massey
X
Ron Kirk
May M.
X
McCluskey
X
Witwer
X
Judd
X
Vigil
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed:
Action Taken:
HB05-1310
Amended, Referred to the Committee of the Whole
08:32 AM -- House Bill 05-1310 - Concerning TABOR Over-Refunds
Representative Hall, prime sponsor, explained that House Bill 05-1310 corrects an accounting (computer) error at the Department of Revenue and an accounting adjustment that caused the state's TABOR revenue base to be set at a level lower than required by the constitution. Representative Vigil asked Mr. Mike Mauer, Legislative Council Staff to explain the bill.
The following person testified:
08:33 AM --
Mr. Mike Mauer, Chief Economist, Legislative Council Staff, explained the background events that led to the need for the bill and distributed a General Fund overview (Attachment A) and a memorandum entitled TABOR Revenue Limit and Refund Adjustments (Attachment B). Mr. Mauer commented that recently, the Department of Revenue discovered a $54.8 million TABOR refund through the Colorado Capital Gains refund mechanism, was booked as a reduction in cash coming into the state rather than as a TABOR refund. Since the refund was claimed during FY 2002-03, a year in which the state did not have enough revenue to reach its TABOR limit, the booking of the refund against revenue caused the state to "ratchet down" $54.8 million further than it otherwise would with the correct accounting. Mr. Mauer explained that the state could be eligible for a one time credit against a future TABOR refund for the amount over-refunded, or $54.8 million.
Mr. Mauer explained that if the corrections are made under House Bill 05-1310, the state would not have a TABOR surplus for FY 2004-05. Currently, the most recent estimate places the TABOR surplus for FY 2004-05 at $161.3 million. The base would be corrected by $74.7 million during FY 2002-03 and that amount would grow as allowed by TABOR until revenues again come in below the limit. In addition, the structural deficit would be reduced from approximately $590 million to about $485 million by FY 2009-10.
The committee briefly discussed the magnitude of the department's computer error.
BILL:
HB05-1310
TIME:
08:43:32 AM
MOVED:
McCluskey
MOTION:
Moved a technical amendment on page 3, line 1, that would replace the language on line 1 with "BE REFUNDED WITHOUT MAKING ANY CALCULATIONS OR REDUCTIONS AS OTHERWISE PROVIDED IN THIS SECTION". The motion passed without objection by those members present.
SECONDED:
Marshall
VOTE
Benefield
Cloer
Excused
Crane
Frangas
Garcia
Jahn
Marshall
Massey
May M.
McCluskey
Witwer
Judd
Vigil
Not Final YES:
0
NO:
0
EXC:
1
ABS:
0
FINAL ACTION:
Pass Without Objection
BILL:
HB05-1310
TIME:
08:44:50 AM
MOVED:
McCluskey
MOTION:
Refer HB 05-1310, as amended, to the Committee of the Whole. The motion passed on a 12-0-1 vote.
SECONDED:
Massey
VOTE
Benefield
Yes
Cloer
Excused
Crane
Yes
Frangas
Yes
Garcia
Yes
Jahn
Yes
Marshall
Yes
Massey
Yes
May M.
Yes
McCluskey
Yes
Witwer
Yes
Judd
Yes
Vigil
Yes
Final YES:
12
NO:
0
EXC:
1
ABS:
0
FINAL ACTION:
PASS
08:45 AM
Adjourn.