Durango Herald misled on Referendum C revenues

Summary: In an August 23 article noting Republican gubernatorial candidate Bob Beauprez's plan for spending state revenues allowed by Referendum C, The Durango Herald reported that Beauprez "would allow the state to spend only the $3.7 billion that taxpayers gave up from state tax surpluses over the next five years, not the estimated $5 billion surplus." In fact, in approving Referendum C, Colorado voters authorized the state "to retain and spend all state revenues" through 2010.

In an August 23 article by staff writer Dale Rodebaugh noting Republican gubernatorial candidate Bob Beauprez's plan for spending state revenues allowed by the 2005 passage of Referendum C, The Durango Herald reported that Beauprez "would allow the state to spend only the $3.7 billion that taxpayers gave up from state tax surpluses over the next five years, not the estimated $5 billion surplus." In fact, in approving Referendum C, Colorado voters did not "[give] up" $3.7 billion. Rather, voters authorized the state "to retain and spend all state revenues" through 2010, suspending the spending restrictions imposed by the Taxpayer's Bill of Rights (TABOR).

As Colorado Media Matters has noted, the entry for Referendum C in the 2005 ballot information booklet known as the Blue Book "estimate[d]" that such retained revenues would amount to $3.7 billion but explicitly noted that "[t]he exact amount of the spending increase could be higher or lower, depending on the economy and the amount of money collected."

Since the Blue Book estimate was released, Colorado's economy has significantly improved, according to a March 21 article by Rocky Mountain News staff reporter Lynn Bartels. The article reported: "Legislative economist Mike Mauer told the Joint Budget Committee that general fund revenues have been revised upward $165 million since the last forecast in December. The strong revenue picture -- after several years of an economic downturn -- means more money for state construction projects, including repairing higher-education buildings and more money for roads, state officials said."

This is not the first time media outlets have mischaracterized Referendum C, which Beauprez opposed. An August 11 Associated Press article stated, "Beauprez said the state should not spend more than the $3.7 billion voters agreed to give up from their state tax surpluses over the next five years, even though the estimated tax surplus has soared to as high as $5 billion because of the economic recovery."

From Rodebaugh's August 23 article in The Durango Herald, "Beauprez stumps on his D.C. experience":

On other issues, Beauprez said:

• Referendum C, which allows the state to keep certain tax surpluses, must be fixed or the next economic downturn will put Colorado in the same revenue-short predicament that spawned Referendum C. Beauprez would allow the state to spend only the $3.7 billion that taxpayers gave up from state tax surpluses over the next five years, not the estimated $5 billion surplus.

—C.K.