Colorado: The 51st State

We all know Colorado is a wonderful state in so many ways, unless you need unemployment insurance or food stamps.

In two separate reports out this week, Colorado ranks 51st--that's not a typo--in both timely processing of food stamp applications and in unemployment insurance recipiency, i.e. percentage of eligible unemployed workers receiving their benefits.

The food stamp data is from 2007, which means it doesn't include the drastic increase in food stamp applications in recent months.

We wish we were making this up, but sadly barriers to accessing these critical safety net services do exist. The question is, what's the state going to do about it?

Senate Finance OKs SB 228

In hearing room packed with supporters today, the Senate Finance Committed approved SB 228 by a 4-3 vote. The critical legislation would eliminate the 6 percent General Fund appropriations provision, also known as Arveschoug-Bird, which will help Colorado avoid making the current budget cuts permanent, maximize federal recovery dollars and get the state’s economy back on track more quickly by addressing current economic realities.

More than 40 state and local organizations, representing hundreds of thousands of Coloradans, have shown their strong support for this common sense legislation. COFPI Senior Fiscal Analyst Carol Hedges and CCLP Special Counsel Ed Kahn joined bill sponsor Senator John Morse and a diverse group of other community leaders to testify before the committee.

“In these difficult economic times, the Legislature needs the flexibility to respond to changing circumstances rather than budgeting by automatic and outdated formulas,” said Senator John Morse. “Senate Bill 228 will allow us as a state to protect our priorities. “

Critics of the bill falsely claimed it would cut transportation funding, and continued to espouse the same kind of misguided mandates and formulas of the past that have put Colorado in this current fiscal and economic mess.

“We think transportation is a critical need, but we also think all of Colorado’s funding priorities should be on a level playing field, so we can address current economic realities and Coloradans’ needs,” said COFPI Senior Fiscal Analyst Carol Hedges. “Pitting transportation against supporting kids, families and unemployed Coloradans is a false choice. We can do both. We can put our priorities on a level playing field and invest where we need to in order to get out of the recession and get Coloradans back on their feet. It just takes leadership.”

“Because Arveschoug-Bird allocates how money is spent rather than limiting how much is spent, this much needed change will not increase taxes, nor will it increase spending,” said CCLP Special Counsel Ed Kahn, echoing the legal opinion of former Colorado Supreme Court Justice Jean Dubofsky. “Since it is not a limit on spending, the General Assembly has the authority to make this change.”

Earlier today, the Denver Post reported that original sponsor, former Sen. Mike Bird, criticized the 18-year old measure and advocated for its repeal.

The bill is expected to move forward in the Senate within a matter of days. Rep. Don Marostica is the House sponsor of SB 228.

If the 6% provision stays in place, federal recovery dollars will not help the state avoid cuts—just postpone them—extending the effects of the recession in Colorado. If unchanged, the 6% will mean that when the economy recovers, and other states are climbing out of the recession and restoring funding for schools, health care or other key needs, Colorado will be stuck in a recession rut. The 6% will force the state to permanently ratchet down investment in general services. .

The 6 percent General Fund Appropriations provision, also known as Arveschoug-Bird, is a formula that dictates how Colorado can appropriate General Fund dollars. General Fund revenues collected above the 6 percent are still spent by the state—just not for operating expenses, such as educating students or paying for medical care. Currently, revenues that top the 6 percent limit are largely used to fund transportation and capital construction needs.

You know who's against Arveschoug-Bird? Bird, that's who.

Seriously. One of the more vocal critics of Arveschoug-Bird is former Sen. Bird himself. Of course, he doesn't live here anymore. But neither should the legislation he left us with.

6 Percent Up in Senate Finance

Today, the 6 percent solution--aka SB 228, aka repealing Arveschoug-Bird--will be heard in the Senate Finance Committee. More than 40 state and local organizations, representing hundreds of thousands of Coloradans, have signed on in support. There's a ton of momentum behind this idea, as getting rid of the 6 percent would allow Colorado to maximize federal recovery dollars, put all priorities on a level playing field, and help Colorado get out of the recession quicker.

Arveschoug-Bird: 25 Random Things About Me

In honor of the Facebook phenomenon-25 Random Things About Me-we decided to have a little fun with an explanation of the Arveschoug-Bird 6 percent general fund appropriations provision, and how it's hurting Colorado. There is a lot of momentum in the legislature to get rid of the 6 percent, so that Colorado can maximize federal stimulus dollars, put all funding priorities on a level playing field, and strengthen our economic future. So here are 25 things about Arveschoug-Bird.

6 Percent Solution: What You Can Do To Help and Why We Need It

This week, a bill is expected to be introduced in the legislature that would eliminate the 6 percent Arveschoug-Bird general fund appropriations provision. Legislators and other state leaders must hear from you about why Colorado must take this action now.

The 6 percent provision prevents Colorado from making smart decisions based on key priorities, current economic conditions, and Coloradans’ needs. If we don’t eliminate the 6 percent provision, general fund cuts made now will effectively be permanent. When the economy recovers, and the one-time federal stimulus goes away, other states will restore their investments, while the ratchet effect of the 6 percent provision will keep Colorado at recession-level spending. That’s bad for jobs, bad for our economy, and bad for Colorado families.

Here's what you can do:

CONTACT THE GOVERNOR

CONTACT YOUR LEGISLATOR

Tell Them: Colorado Needs to Get Rid of the 6 Percent
So We Can Get Out of the Recession Faster!

Stimulating Effect: Preliminary Impacts in CO

Check out COFPI's preliminary analysis of the federal stimulus compromise plan. The bottom line: more than $2.8 billion in direct assistance, plus tax relief for most Coloradans.

Unemployment Insurance Changes Needed In CO

To make sure that Colorado maximizes the benefit of unemployment insurance changes at the federal level, changes must be made at the state level. Read more about it here.

It's an issue full of complexity, but the bottom line is that the state needs to take a couple more steps to make sure that unemployed workers in Colorado are getting the full assistance they need.

6 Percent Progress Continues, But Some in Statehouse Cling to Failed Policies from the Past

As Colorado faces a budget and economic crisis, momentum continues to grow around the idea of getting rid of the 6 percent provision on general fund appropriations. But some in the statehouse are clinging to the failed policies of the past, as opposed to recognizing that we must use every tool we can to shorten the recession, strengthen our economy, create jobs, and improve our budget picture-and this is one of those tools.

The 6 percent provision prevents Colorado from making smart decisions based on key priorities, changing economic conditions, and Coloradans' needs. It requires governing by formula, rather than by deliberative and responsible actions.

Coloradans' needs are not static. They change with the times, they change with economic conditions, and they change with our values and priorities. Families are adapting, businesses are adapting, and it's long past time that state government adapts to 21st century economic realities.

When it comes to creating jobs, strengthening our fiscal landscape, investing in priorities like education and healthcare, and turning the economy around, Colorado is handcuffed. Getting rid of the 6% provision is the key.

The idea has strong bi-partisan support. However, some want to play the same tired old games to push through failed policies from the past. House Republicans have floated a proposal that gets rid of the 6 percent provision in exchange for a requirement that the state transfer 10 percent of its sales and use tax revenue into transportation funding each year, no matter what. This would take Colorado one step forward and two steps back by trading one constraint for another, and making transportation funding a higher priority than every other responsibility the state has for education, health care, higher education, and more.

What their plan really means is an additional $200 million in cuts to critical programs like K-12 and higher education, health care and public safety every year. Estimates show those cuts would be $189 million in FY 2008-2009; $206 million in FY 2009-2010; $215 million in FY 2010-2011 and $230 million in FY 2011-2012.

We have to ask: What will they cut? Which kids will they deny food or health care? Which students will they prevent from going to college? Which families will be left out to dry?

The real cost sometimes gets lost behind big numbers. That $200 million would pay for: two semesters of college for 36,231 students; the state's share of K-12 education funding for 43,379 students; health care for 33,369 Coloradans or 111,919 kids.

Proponents of this plan want to pave over every other priority, putting roads ahead of Colorado families, healthcare, education and other critical priorities, and they're willing to risk a smart, common sense plan to do it. We believe that Colorado must eliminate the 6 percent, to maximize federal stimulus dollars, and put all of our state's funding priorities on a level playing field.

Arbitrary formulas and constraints-and locking in one spending area over everything else-is exactly the kind failed fiscal policy that has gotten us into this mess. We've been down this road before, and look where it's gotten us.

CCLP Assists State Leaders with Foreclosure Assistance Plan

CCLP was pleased to see Gov. Bill Ritter, Rep. Mark Ferrandino and other state leaders announcing a foreclosure plan this morning. Likewise CCLP appreciated the opportunity to work with Rep. Ferrandino, Sen. Morgan Carroll, community advocates, representatives from the financial sector, and the Governor’s Office in helping to shape a foreclosure-deferment bill that will be introduced this week.

The foreclosure deferment bill – touted in Gov. Ritter’s Jan. 8 State of the State Address and sponsored by Rep. Ferrandino and Sen. Carroll – will extend a 90-day foreclosure timeout to qualified homeowners so they can renegotiate their mortgages and craft new payment plans.

“As Coloradans grapple with a growing economic crisis and increasing job losses, it’s critical that the state provide avenues for families to get back on their feet,” said Ed Kahn, Special Counsel at CCLP. “Strengthening the safety-net for working families and lower-income Coloradans will help shorten the recession and move more Coloradans toward economic security.”

Additional information from the Governor’s Office Press Release:

“During this time of global economic crisis, it’s critical that we provide relief to homeowners who are already caught up in the foreclosure process, and that we prevent additional foreclosures in the future,” Gov. Ritter said. “The Countrywide settlement and the foreclosure-deferment bill will help Colorado accomplish both of those goals by keeping families from losing their homes and the American dream.”

The $6 million Countrywide settlement stems from allegations by the Attorney General’s Office that Countrywide and its affiliates marketed and offered subprime and other high-risk loans. The settlement will provide direct and immediate financial assistance to borrowers who are in default or facing foreclosure. An estimated 6,800 Colorado homeowners will benefit.

The settlement also provides $500,000 to the Colorado Division of Housing’s Foreclosure Hotline (1-877-601-HOPE) for continued operation and expansion of one of the nation’s best foreclosure-prevention programs. The hotline has helped thousands of homeowners stave off foreclosure by connecting them with HUD-approved foreclosure counselors and other resources.

“This bill [foreclosure] will require borrowers and lenders to take and share responsibility,” Rep. Ferrandino said. “It will help responsible borrowers get back on track, stay in their homes and hold onto the American dream.”

“Parts of my district are seeing 78 percent of homes in some state of foreclosure," said Sen. Morgan Carroll (D-Aurora). "Foreclosures don't just affect the people losing their homes; it affects their children, their neighbors, and their entire community. This bill should take a positive first step in helping people get out of foreclosure and on track toward staying in their homes.”

Denver Post: 6% Not Set in Stone

The Denver Post editorialized today that the 6% general fund appropriations directive can, in fact, be changed. Momentum for this idea--which would help maximize federal stimulus dollars and strengthen Colorado's fiscal future by creating a level playing field for vital areas like healthcare, education and higher ed--continues to increase.

Stay tuned for more news later this week about other organizations supporting this concept.

COFPI Efforts on 6% Paying Off

COFPI's continued efforts to spread the word about how getting rid of the 6% formula will maximize federal stimulus dollars and strengthe Colorado's fiscal future are paying off. The idea is gaining momentum, slowly but surely.

This past weekend, the Denver Post featured an online guest commentary from CCLP Executive Director Maureen Farrell-Stevenson and COFPI Program Director Kathy White, which highlighted the need to eliminate the 6%. Today, the Post had a great article outlining how the 6% Arveschoug-Bird formula is hampering Colorado.

And this afternoon, in a packed meeting room, COFPI hosted more than 60 advocates and policymakers for brief educational forum about how eliminating the 6% general fund appropriations directive would help maximize federal stimulus dollars and strengthen Colorado's fiscal future.

Check out this fact sheet on the issue. Find out how the 6% works. Learn what you can do to help spread the word. Worried this will lead to a lawsuit? Calm your nerves with this legal summary from a former Colorado Supreme Court Justice. Got questions? The answers are here. Need a visualization? Presentation materials here.

Please read up. There will be a quiz.