Governor Candidates Take Sides On Ref-C

Ritter For, Wiens Against, Beauprez and Holtzman Unsupportive Three potential Republican contenders for Governor next year are voicing their opposition or concerns toward Referendum C, the $3 billion spending plan referred by the legislature for voter approval this fall. One of the four Democrats most frequently mentioned for their party’s nomination came out in favor of the plan; the others passed. These are the results of the first formal candidate survey on Referendum C and related budget issues, conducted this month by Backbone America Citizens Alliance, a new conservative group in Colorado.

Republicans Bob Beauprez, Tom Wiens, Marc Holtzman, and Scott McInnis, along with Democrats Rutt Bridges, Bill Ritter, John Hickenlooper, and Ken Salazar, were invited by a letter from the group on April 6 to answer a 10-point questionnaire about taxes and spending.

Beauprez, Wiens, Holtzman, and Ritter submitted written replies. McInnis and Bridges declined to participate, stating they are not yet declared candidates. Hickenlooper and Salazar could not reached for comment.

The full text of each respondent's survey answers and comments is given below. Here is an overview:

On the first agree/disagree statement, “Referendum C… should be approved by voters in November,” former Denver District Attorney Bill Ritter, a Democrat now in private law practice, stated that he agrees.

State Sen. Tom Wiens (R-Douglas County) was the only one to flatly state his disagreement with passage of the referendum.

But Congressman Bob Beauprez (R-7th District) wrote that he has “serious reservations about Referendum C.” Beauprez added he is concerned that the proposal “is to our budget problems what a chain saw would be to brain surgery – a blunt instrument for a delicate job…. I am not convinced that a $3 billion tax increase is the only way to get the job done.”

Marc Holtzman, President of the University of Denver and a Republican, stated: “As for Referendum C, I have publicly expressed my concerns about this measure, and have said that I could not support it as presently written.”

Holtzman, Beauprez, and Wiens all stated their agreement with some modification to add flexibility in Amendment 23, the mandate for education spending increases. Beauprez and Wiens also agreed with the statement that “a voter-approved reduction of TABOR refunds amounts to a tax increase.”

On the final question, “I intend to support the above positions when or if I run for Governor in 2006, and would adhere to them in office if I were to become Governor,” Democrat Ritter, along with Republicans Wiens and Beauprez, formally marked their agreement.

Senate President Joan Fitz-Gerald (D-Jefferson County) was not contacted for the survey, since her potential candidacy only became known this week. She is on record as a strong proponent of Referendum C, however.

John Andrews, chairman of Backbone America and former President of the Colorado Senate, complimented the four contenders who answered the group’s survey. “Referendum C poses a leadership test for anyone seeking to be our next governor, and these individuals have shown they understand that,” he said.

“The voters’ decision in 2005 will shape the campaign picture for 2006 and the budget realities for 2007, the winner’s first year,” Andrews added. “There are honorable differences on whether this should pass, but leaders need to speak out. The candor from prominent voices in both parties is a real service to our Colorado taxpayers who are weighing their decision as we head to November.”

Backbone America Citizens Alliance is a nonprofit, nonpartisan organization formed in 2004 and affiliated with the Claremont Institute. It works in Colorado and other states to educate voters about constitutional government and personal responsibility.

Note: Following is the full text of each respondent's survey answers and comments, presented in the order they were received. Respondents participated on the stipulation that answering the survey does not prejudge one's ultimate decision about becoming a candidate.

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QUESTIONNAIRE ON TAX AND SPENDING ISSUES

Backbone America Citizens Alliance

Submitted by: BOB BEAUPREZ

1. Referendum C, the so called Colorado Economic Recovery Act, which would allow state government to retain and spend some $3 billion in scheduled TABOR refunds, should be approved by voters in November.

( ) Agree ( ) Disagree ( X ) Other

Comment: The citizens of Colorado should be thankful for TABOR for several reasons. First of all, TABOR not only didn’t cause our current budget problem, the fiscal discipline it forced upon state government during times of economic prosperity helped prevent a budget catastrophe during recent recessionary times. Secondly, TABOR gives the citizens the authority to determine whether or not they will allow the state to take more or keep more of their taxes. We aren’t at the mercy of politicians to determine how much of our hard earned money the state should be allowed to spend.

As I spend time talking with experts on the state budget, I am increasingly concerned that Referendum C is to our budget problems what a chain saw would be to brain surgery – a blunt instrument for a delicate job. I understand that this Referendum is the result of political compromises rather than a careful analysis of the comprehensive needs of the state. And I do accept the fact that the state has several pressing infrastructure needs that must be addressed in the very near future. But I am not convinced that a $3 billion tax increase is the only way to get the job done.

I will continue to study this matter carefully, and watch and listen as the case is made to the citizens of Colorado. But today, this citizen has serious reservations about Referendum C.

2. A voter-approved reduction of TABOR refunds amounts to a tax increase, since it transfers that much money from people who earned it and into the coffers of government.

( X ) Agree ( ) Disagree ( ) Other

Comment: Money that would otherwise be returned to the people who earned it, but is instead retained by the state government is a tax increase. Furthermore, the $3.1 billion figure that has been suggested is merely a forecast amount. If the economy improves that number will likely increase. The truth is that Referendum C allows the state to keep ALL excess revenues for a five- year period. In year six, once TABOR revenue limits are again in place, the General Fund base will have been permanently increased by the largest single year TABOR surplus of the five- year period. An argument could be made that this also represents a permanent tax increase.

3. Realistic and responsible options exist for slowing the growth of state spending, and budget writers should pursue these instead of seeking faster growth in revenues.

( X ) Agree ( ) Disagree ( ) Other

Comment: The current budget shortfall is at most 2% of the entire state budget – and perhaps even less than that. Yet the state general fund is slated to grow by approximately 4% next year and the overall budget could grow as much as 6% or more. Most Colorado families or small business owners would find a way to deal with this situation without resorting to a tax increase.

4. The Taxpayer’s bill of rights with its flexible constitutional limits on taxes and spending has stimulated Colorado’s prosperity and beneficially disciplined it’s government.

( X ) Agree ( ) Disagree ( ) Other

Comment: The white- hot economy of the late 1990’s produced record surpluses for many – if not most – state governments. Many – if not most – of these states proceeded to spend every penny of these surpluses on new (and ongoing) programs. TABOR forced Colorado state government to maintain modest growth and refund the taxpayers money back to them. I believe this prevented truly catastrophic budget cuts from having to be made when the economy fell into a recession.

5. Consequently, the provisions of the Taxpayer’s Bill of Rights need little or no change.

( ) Agree ( )Disagree ( X ) Other

Comment: I believe TABOR has worked well to keep government spending and taxation under control. I have a specific concern about the ratchet effect and believe that it’s worth at least looking at whether or not the ratchet provision should be modified to allow the state a little more flexibility to recover from recessionary trends.

6. Amendment 23 with its mandated K-12 spending growth, not TABOR, has caused the budget squeeze on colleges, highways, and prisons.

( ) Agree ( ) Disagree ( X ) Other

Comment: I think it’s overly simplistic to attribute our budget problems to any one particular issue. The combination of TABOR, Amendment 23, The Gallagher Amendment and the Arveschoug-Bird Amendment have all combined to present certain challenges to the state budget process.

7. Consequently, Amendment 23 should be modified to add flexibility and give better balance among all the state’s budget priorities.

( X) Agree ( ) Disagree ( ) Other

Comment: I would personally like to see common sense adjustments made to Amendment 23. Any such adjustments would rightfully have to be made by a vote of the people, but I believe a very clear case needs to be made to the voters detailing exactly what is wrong before they will agree to make any adjustments. As public officials, we need to do a better job communicating exactly what impacts Amendment 23 is having on our state.

8. Regarding Colorado’s anticipated payments under the master settlement with tobacco companies, the best approach fiscally and ethically is to convert them into a lump sum with appropriate safeguards against unwise spending of the proceeds.

( ) Agree ( ) Disagree ( X ) Other

Comment: I believe securitizing our tobacco settlement may be a fiscally- prudent step to take in order to help balance the budget, but I would need to know the specifics of such a proposal before I could state a definite position.

9. I intend to actively campaign on the above positions in the 2005 ballot election.

( ) Agree ( ) Disagree ( X ) Other

Comment: I intend to spend the vast majority of my time being an active and effective champion of the taxpayers as a member of Congress in 2005. I do not anticipate having a lot of time to campaign for or against ballot initiatives. However, I will always take the opportunity to share my opinions on important public policy questions when asked.

10. I intend to support the above positions when or if I run for Governor in 2006, and would adhere to them in office if I were to become Governor.

( X ) Agree ( ) Disagree ( ) Other

** END BEAUPREZ QUESTIONNAIRE **

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QUESTIONNAIRE ON TAX AND SPENDING ISSUES

Backbone America Citizens Alliance

Submitted by: TOM WIENS

1. Referendum C, the so-called Colorado Economic Recovery Act, which would allow state government to retain and spend some $3 billion in scheduled TABOR refunds, should be approved by voters in November.

( ) Agree ( x ) Disagree ( ) Other

2. A voter-approved reduction of TABOR refunds amounts to a tax increase, since it transfers that much money from the people who earned it and into the coffers of government.

( x ) Agree ( ) Disagree ( ) Other

Comment: Yes, if it is open-ended and takes all restraint off government. If you ask voters to approve a specific project or projects it would not be a tax increase. This is different from a “time out.” Asking voters to approve specific spending is consistent with TABOR. A time out is not.

3. Realistic and responsible options exist for slowing the growth of state spending, and budget-writers should pursue these instead of seeking faster growth in revenues.

( x ) Agree ( ) Disagree ( ) Other

4. The Taxpayer’s Bill of Rights with its flexible constitutional limits on taxes and spending has stimulated Colorado's prosperity and beneficially disciplined its government.

( x ) Agree ( ) Disagree ( ) Other

5. Consequently the provisions of the Taxpayer’s Bill of Rights need little or no change. ( x ) Agree ( ) Disagree ( ) Other

6. Amendment 23 with its mandated K-12 spending growth, not TABOR, has caused the budget squeeze on colleges, highways, and prisons. ( ) Agree ( ) Disagree ( x ) Other

Comment: There needs to be a sunset on the conflict based on the accounting of the 1/3 of 1% to the School Finance Act in relation to TABOR. There also needs to be a safety valve for periods when we have a downturn in revenues. This needs to be put to the voters.

7. Consequently Amendment 23 should be modified to add flexibility and give a better balance among all the state's budget priorities. ( x ) Agree ( ) Disagree ( ) Other

8. Regarding Colorado’s anticipated payments under the master settlement with tobacco companies, the best approach fiscally and ethically is to convert them into a lump sum with appropriate safeguards against unwise spending of the proceeds. ( x ) Agree ( ) Disagree ( ) Other

9. I intend to actively campaign on the above positions in the 2005 ballot election. ( x ) Agree ( ) Disagree ( ) Other

Comment: I also intend to introduce to the debate results-based budgeting, which is the real solution to the problems we face.

10. I intend to support the above positions when or if I run for Governor in 2006, and I would adhere to them in office if I were to become Governor.

( x ) Agree ( ) Disagree ( ) Other

** END WIENS QUESTIONNAIRE **

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QUESTIONNAIRE ON TAX AND SPENDING ISSUES

Backbone America Citizens Alliance

Submitted by: MARC HOLTZMAN

Questions 1-10... Did not respond

Comments: Thanks for your recent letter and questionnaire. As you know, candidates receive many such questionnaires posing hypothetical questions about my opinions and likely future actions. As the campaign's pace quickens, we will not be able to answer every such questionnaire, so in fairness to all, we will not be be answering questionnaires.

But as you know, I have always been a supporter of TABOR and would favor no changes in it. It has been good for our state and already includes adequate provisions for dealing with the sorts of economic downturns we have experienced.

As for Referendum C, I have publicly expressed my concerns about this measure and have said that I could not support it as presently written. Out of respect for Governor Owens, I have said I will reexamine my stance if he and others can justify some specific plan for the use of de-Bruced revenues.

As for Amendment 23, it does need a TABOR-like mechanism that will allow voters to revisit their approval of the measure in an economic downturn. Colorado voters value education. That's why they approved Amendment 23. But I am sure they would not approve of education spending overwhelming all other programs, including healthcare and transportation.

During the course of this campaign I will travel all across this state, discussing issues with voters. In fact, I plan to visit every county. These visits will allow me to share fully my views with Colorado voters and allow me to hear their views, too. I hope to speak with many of your members on this journey.

** END HOLTZMAN QUESTIONNAIRE **

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QUESTIONNAIRE ON TAX AND SPENDING ISSUES

Backbone America Citizens Alliance

Submitted by: BILL RITTER, JR.

1. Referendum C, the so-called Colorado Economic Recovery Act, which would allow state

government to retain and spend some $3 billion in scheduled TABOR refunds, should be approved

by voters in November.

( X ) Agree ( ) Disagree ( ) Other

Questions 2-8... Did not respond

9. I intend to actively campaign on the above positions in the 2005 ballot election.

( X ) Agree ( ) Disagree ( ) Other

10. I intend to support the above positions when or if I run for Governor in 2006,

and I would adhere to them in office if I were to become Governor.

( X ) Agree ( ) Disagree ( ) Other

Comments:To be clear, I am a potential candidate for Governor. I have not filed any

papers to be officially considered a candidate. Coloradoans deserve a modern and

sensible approach to managing our state’s resources. I support Referendum C because

it significantly alters the part of TABOR that has held our state back from achieving its

potential in the critical areas of transportation, funding for school construction, and the

Police and Fire Pension Fund. I will campaign for Referendum C's passage in 2005.

** END RITTER QUESTIONNAIRE **