Governor Signs SB 228, Repealing Arveschoug-Bird

Governor Bill Ritter signed SB 228 this morning, repealing an outdated budget formula that restricted Colorado’s ability to withstand and recover from recessions. The Colorado Fiscal Policy Institute (COFPI) issued the following statement from Senior Fiscal Analyst Carol Hedges:

“We want to congratulate Governor Ritter for taking this tremendous step toward modernizing and strengthening Colorado’s budget system. The Governor, as well as bill sponsors Sen. John Morse, Rep. Don Marostica, and Rep. Lois Court, showed the necessary leadership and will to change our state’s course for the better.

For years, Colorado has fallen prey to outdated fiscal policy that imperiled our ability to withstand and recover from economic downturns. This law is an important step that will help us make quick, strong recoveries and move us closer to having all of the state’s priorities on a level playing field.

Instead of relying on the failed fiscal policies of the past, the Legislature’s support for SB 228 shows that a broad coalition of different stakeholders can work together to fix what is broken.

Unfortunately, critics of SB 228 have repeatedly made misleading and outright false attacks about this legislation. They’ve said it will increase spending, which it does not. That it will raise your taxes, which it will not. And that it will increase the size of government, which it can’t.

Perhaps even more importantly, SB 228 will stop Colorado from falling into the same dire situation that we’ve seen in California, where mandated spending formulas have crippled their state’s ability to invest in priorities and brought about massive budget shortfalls.

SB 228 sets us on a different, better course—toward stronger fiscal footing, more flexibility to withstand and recover from changing economic conditions, more stable funding for transportation and infrastructure, substantial state reserves for the future, and a more level playing field for job-creating areas like education and health care that reflects Colorado’s priorities.”

Yesterday, the Governor also signed two other bills that CCLP and COFPI were actively involved in passing: SB 247 which expands unemployment insurance for struggling workers and draws down about $200 million in federal stimulus money, and HB 1276 which strengthens foreclosure assistance for Colorado families trying to stay in their homes.