election 2010

Coalition plots campaign to defeat Colorado tax cuts
By Tim Hoover
The Denver Post

Posted: 08/16/2010 01:00:00 AM MDTUpdated: 08/16/2010 08:00:25 AM MDT


With primary elections over, the massive campaign to defeat three tax-slashing initiatives on the November ballot is now gearing up on a level similar to the effort to pass Referendum C in 2005.

The coalition to defeat Amendments 60 and 61 and Proposition 101 is largely made up of the same heavy hitters in the business community, nonprofit world and organized-labor sector that helped pass Ref C, which gave the state a five-year timeout from taxpayer refunds under the Taxpayer's Bill of Rights and permanently eliminated TABOR's "ratchet down" effect.

So far, Coloradans for Responsible Reform, the coalition leading the fight against the three measures, has raised more than $4 million. Most of the money is being spent to buy up television time for ads that are expected to start airing after Labor Day.

"We're going to talk about the disastrous effect these measures are going to have on Colorado's recovery," said Rick Reiter, a veteran political consultant who is the campaign manager for Coloradans for Responsible Reform.

Reiter, who also led the campaign to pass Ref C in 2005, said the three measures would create a "voter-approved recession" throughout the state.

Opponents of the three initiatives are deliberately being vague on their strategy, saying they are up against an invisible enemy and don't want to reveal too much.

While there is an issue committee in favor of the measures called CO Tax Reforms, it's still unknown precisely who wrote the initiatives or who paid the costs to print and circulate petitions to get them on the ballot.

In the course of a campaign-finance lawsuit filed by opponents, testimony has indicated that anti-tax crusader Douglas Bruce was a key organizer, if not the mastermind, behind the initiatives.

Bruce is now defending himself from a contempt-of-court action resulting from his refusal to answer questions about his role in the initiatives.

Natalie Menten, the spokeswoman for CO Tax Reforms, would correspond with a reporter only by e-mail. She did not respond to questions about who had written the measures or who paid to get them on the ballot.

Instead, she pointed at opponents of the measures, saying they are businesses or groups that directly benefit from government spending.

"I have faith that the voters of Colorado will see through why high-powered lobbyists and special interest groups that are trying to buy this election, spending millions to oppose limiting government debt and tax relief," Menten wrote. "What's $100,000 to one of these power brokers when they'll get $25 million from the tax-and-spenders?"

Without question, some donors to the opposition campaign would directly benefit from their defeat. The Colorado Education Association and the National Education Association, which represent teachers, have given a combined $650,000 to defeat the measures. The Colorado Contractors Association, which represents road-construction companies, has given $300,000.
Contributions have also come from bond dealers and bankers.

But the broader business community has also given heavily. The Denver Metro Chamber of Commerce has contributed $500,000 to the opposition campaign, and the Southeast Business Partnership donated $100,000.

Most recent campaign-finance reports show CO Tax Reforms had raised $12,262. Menten would not comment on whether the campaign would have any kind of advertising.

Reiter said that, given the stealthy history of proponents, he's not assuming there won't be real money behind the effort to pass the initiatives.

Business groups donating to the effort say they're frustrated that they're being asked to spend millions of dollars to essentially maintain the status quo.

"Would we rather be spending half a million dollars on boosting Colorado's economy? Absolutely," said Kate Horle, spokeswoman for the Denver Metro Chamber of Commerce. "You can employ people for that. You can give people raises for that. It's unfortunate."

Tim Hoover: 303-954-1626 or thoover@denverpost.com


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On the ballot
What the three measures would do:

Amendment 60: Eliminates the 2007 mill-levy freeze approved by lawmakers that kept property-tax rates from decreasing and reverses "de-Brucing" measures approved by voters in school districts across the state that exempted them from revenue limits under TABOR. Cuts local property-tax rates in half over 10 years and requires this loss of local money to be offset by the state.

Amendment 61: Prohibits the state from any kind of borrowing, severely limiting the state's ability to build things such as highways and projects on college campuses. Prohibits local governments from issuing bonds without voter approval and limits borrowing terms to no longer than 10 years. Requires governments to lower taxes by an amount equivalent to the sum borrowed once debt is paid off.

Proposition 101: Cuts state income taxes from 4.63 percent to 3.5 percent over time, reduces vehicle-registration fees and taxes and eliminates all taxes and fees on phones except for 911 service.



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