TABOR-Taxpayers' Bill of Rights

Just Progress has been asked to come out officially against the Taxpayers' Bill of Rights (TABOR) initiative petition that is currently circulating.  Those requesting that JP take a stance on this issue include some JP members and concerned citizens and groups who are not a part of Just Progress.

TABOR proposes to limit state government spending growth by a factor comprised of the rate of population growth and the growth of the general consumer price index (this is an over-simplification but essentially correct).  It also proposes limiting the amount of money the State can accumulate in its Rainy Day Account that is intended to provide the money necessary to get the State through hard economic times.  TABOR proponents say it will make the State attractive to businesses and productive citizens (investors, business owners, top professionals, high earning workers) and take away the ability of the State to finance social programs and to shackle businesses and citizens with regulations.

You may remember that David Blatt spoke to Just Progress last Spring about how TABOR would devastate Oklahoma just as it has devastated Colorado (Colorado is now reconsidering scraping much of TABOR through a new initiative petition).  He and others who oppose TABOR believe it will kill Oklahoma's ability to finance even a mediocre education system, will lead to immoral cuts in the social safety net (especially to health care programs and programs that help the needy), will cause an signficant decline in the quality of Oklahoma's basic infrastructure, and make it all but imposssible to enforce well the regulations we need to protect us from business fraud, environmental degradation, workplace safety, public health hazards and a myriad of other problems government regulations are designed to prevent or to mitigate.

Essentially, TABOR pits those who believe in the power of progressive government to channel market forces into the task of providing a safe, just, equal opportunity and prosperous society against those who believe that the best possible society would be that produced by unregulated market forces. 

The Just Progress board would like to know your thoughts on this matter.  If Just Progress is to take an official stance on this issue, it is desirable that it do so this week through a press conference designed to ally us with the major TABOR opponents.  Please let us know your thoughts by registering them as a comment to this Post.

Comments

[john wylie]

TABOR is a recipe for disaster in Oklahoma. See the last two labor bulletins from the state to see how far the safety net has already been ripped--the much-vaunted "new jobs" are for the most part very low paid and lack health insurance. Not good for Oklahoma in any way, unless we want a state that eliminates public education, the entire social safety net, decent roads, etc. John Wylie

[Ethan J.]

We need to kill this thing. If JP can mobilize people and get them doorknocking and whatnot, that'll help. But JP should absolutely come out against this ridiculous and fiscally irresponsible proposal.

[Jack Boyte]

I urge the JP board to issue a public statement strongly opposing the TABOR petition initiative.

Among other things, TABOR would force the state to use volunteer Boy Scouts as prison guards and turn bridges and overpasses into death traps.

The board should include in it's statement against TABOR, a call to elected Democrat officials to speak out against TABOR, too.

[Charlotte Stewart]

In my opinion, TABOR is nothing but trouble. But we do need talking points on this (as well as on the city council issues) to make our arguments at every opportunity.

[Christie Breedlove]

Again, Ray Charles could see the problems this piece of legislation would cause the have nots. I say we scare the hell out of everyone with our own take on the legislation (which are the facts of its failure in Colorado). Halloween is a good time to be scary!!

[Heather Hope]

TABOR is a Formula For Disaster
FACT SHEET: October 2005

National interest groups are pushing an initiative petition, SQ 726, which would entrench a rigid spending formula in Oklahoma’s Constitution as a way to limit government spending. The proposal being circulated in Oklahoma is modeled on Colorado’s misleadingly-named Taxpayer’s Bill of Rights (TABOR).

 SQ 726 Would Lead to Mounting and Devastating Cuts to Services
o The TABOR formula limits government spending to the general inflation rate plus population growth. TABOR is the wrong formula because it does not reflect the cost of services that government actually provides, like health care, higher education and transportation;
o The TABOR philosophy of “starving government at all costs” represents a distorted and misguided approach to making Oklahoma a state of opportunity. Our ability to promote growth and economic development in Oklahoma requires an educated and trained workforce, upgraded infrastructure, and constructive private-public partnerships.
o Nothing in SQ 726 would ensure that government spends taxpayers’ dollars more efficiently or accountably.

 The Colorado experience shows that as a model, TABOR is a failure
o Because of TABOR spending limits, Colorado has consistently underfunded major programs. For example, K-12 education spending per pupil fell by more than $300 from 1992 to 2000. Teacher pay is below the national average. Higher Education now receives just 10.6% of annual general fund appropriations compared to 18.5% 1992.
o The Colorado business community and political leaders from both parties, including Republican Governor Bill Owen, have united to support a five-year suspension of TABOR to allow the state to solve its budget crisis and reinvest in key services.

 SQ 726 would not fix the problems with Colorado’s TABOR
Proponents acknowledge that Colorado’s TABOR is flawed but claim that SQ 726 addresses and fixes Colorado’s mistakes. It’s not true! Under SQ 726 –
o The spending limit formula will prevent the state budget from ever recovering from revenue downturns. Only in the third consecutive year of shortfalls would the spending limit be held steady. Under SQ 726, budget cuts would become permanent and cumulative.
o The Legislature would no longer be required to keep 5% of the certified revenue estimate in reserve to protect against shortfalls;
o Budget reserve funds could not be used to make up for shortfalls in the upcoming year’s budget, making deeper cuts unavoidable;
o The Legislature could no longer pass supplemental appropriations in case of routine budget shortfalls. Every shortfall would require raiding the Constitutional Emergency Fund;
o SQ 726 grants an explicit right to sue over alleged violations of its provisions, creating the specter that the annual state budget will be held hostage to competing lawsuits;
o Tax rebates, in years when they are provided, would be proportional only to households’ income tax liability. Families that pay more in sales tax, excise taxes and property tax would be left out.

For more information on TABOR, please go to: www.okpolicy.org (select Budget and Taxes).

[Sherri Lyon]

TABOR is a recipe for disaster and, surely, we should learn from the mess it's made of Colorado where their Repulican governor is trying to get it revoked. TABOR is incredibly dishonest and has no benefit to the majority of the citizens in this state. JP should definitely come out against this as it is designed to destroy any ability of our Government to take care of its obligations.