Something to Watch For - TABOR

This was in today's OpinionJournal Political Diary.

Colorado voters will be asked to make an historic decision in November: whether to retain the lower-cost state government that has helped their economy boom, or bust the caps that the state's pioneering spending limit has imposed on the growth of government.

Colorado Governor Bill Owens announced a deal with leaders of the Democratic state legislature yesterday that would ask voters to approve a five-year suspension of taxpayer refunds that are required by the state's Taxpayer Bill of Rights (Tabor). In 1992, voters approved TABOR, which requires any tax increase to be approved by popular vote and limits state spending in line with inflation and population growth. Any tax revenues collected in excess of the spending limit must be returned to taxpayers as a tax refund unless the public specifically votes to allow the state to keep the extra money.

By limiting spending, Colorado avoided the budget problems that befell other states during the last recession, and the state enjoyed the fastest economic growth in the country, as well as the second-highest personal income growth. But Governor Owens insists he is keeping TABOR intact: He's merely asking voters for needed money to build essential roads, preserve government services and avoid painful cuts in higher education spending. Others disagree. Senator Jim Dyer, a fellow Republican, notes that the compromise does nothing to alter Amendment 23, approved by voters in 2000, which requires automatic education spending increases even at the expense of other programs.

Jon Caldera, the president of the conservative Independence Institute, says the vote in Colorado will be watched closely nationwide. "Florida, Wisconsin, California and other states are debating whether or not to have TABORs of their own right now," he says. "The outcome here will play a big role in whether or not other states adopt this model."

My gut tells me that anti-TABOR forces in Wisconsin will latch onto this news quick. Already the talking point is TABOR lost the GOP the Colorado legislature (There's no proof of this.) so any blow to the Colorado version could be crucial for any version here in the Badger State.

Another thing to watch for is if lobbyists in Wisconsin, Florida, and California move to Denver with the full intent of spending on advertising to weaken Colorado's TABOR.

Cross-Posted at Lakeshore Laments by Kevin