In an August 4 article listing a number of issues expected to appear on the November ballot, the print edition of The Gazette of Colorado Springs erroneously claimed that one of the measures would be “a rebate on any extra money collected over and above Referendum C.” In fact, it is not possible for the state to collect money “over and above Referendum C,” because Referendum C authorized the state “to retain and spend all state revenues” over five years.

Presumably the Gazette was referring to Initiative 88, which seeks a “modification of the limit on state fiscal year spending approved [by passage of Referendum C] at the November 2005 election” and would require that the state refund “revenues above the amount estimated in the 2005 ballot information booklet,” according to the Colorado secretary of state.

Contrary to the Gazette's suggestion that revenue retained by the state pursuant to Referendum C has a limit, above which “extra money” could be “collected,” the voter-approved referendum lets the state retain and spend “all state revenues” collected in the next five years that otherwise would have been refunded to taxpayers because of the state's constitutional spending limits, known as TABOR (an acronym for the Taxpayer Bill of Rights).

Initiative 88, which is backed by Independence Institute president and Newsradio 850 KOA host Jon Caldara, proposes to cap additional spending at $3.7 billion, which was the amount state spending was estimated to rise by the “blue book” -- the publication written by the Legislative Council of the Colorado General Assembly and mailed to voters that contains analysis, arguments for and against, and title and text of ballot measures. The 2005 Colorado Blue Book specified in its analysis of Referendum C that the $3.7 billion figure it cited was an “estimate” and that the “exact amount of the spending increase could be higher or lower, depending on the economy and the amount of money collected.”

A July 28 Legislative Council staff memo about Initiative 88 states: “The actual amount of Referendum C spending and [any refunds due if Initiative 88 passes] could be higher or lower ... depending on the economy and the amount of money collected. Under [Initiative 88], if the state collects less than predicted in the 2005 ballot booklet during any year through 2010, total Referendum C spending during the five year period will be less than $3.7 billion. Because the state develops and publishes estimates of tax revenue four times each year, the [estimate on allowable state spending under Referendum C will] change over time.”

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 Bartles. 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.”