Colorado - SHEF

Colorado

Colorado allocated the fourth lowest amount in education appropriations per FTE in 2018 despite having an above average tax base. This suggests Colorado may have the capacity to increase higher education support through additional tax revenue; however, actually increasing revenue may be very difficult due to budget institutions and voter preferences. Colorado has one of the most restrictive tax and expenditure limitations in the nation. Passed as a constitutional amendment in 1992, the taxpayer bill of rights (TABOR) places limits on the amount of tax revenue the state can collect and allocate. 7 7James, F. J., & Wallis, A. (2004). Tax and spending limits in Colorado. Public Budgeting & Finance, 24(4), 16-33. VIEW ALL FOOTNOTES While these limits have been gradually weakened, TABOR also requires voter approval for tax increases. Voter preferences appear to favor lower state taxes, as Colorado voters passed Proposition 116 in 2020 that will lower the state income tax rate from 4.63% to 4.55%. 8 8Hindi, S. (2020, November 3). Colorado Prop 116 results: Voters approve state income tax cut. Denver Post. https://www.denverpost.com/2020/11/03/colorado-pop-116-results-income-tax/ VIEW ALL FOOTNOTES