Colorado’s government has experienced significant growth in the last 30 years, despite efforts to limit its expansion. This is according to a new report by the Independence Institute, which analyzed state spending and revenue sources. The findings of the report may come as a surprise to many, as Colorado is known for its fiscally conservative approach to government.
In 1992, Colorado voters passed the Taxpayer’s Bill of Rights (TABOR), which was intended to limit the growth of government by capping state spending and requiring voter approval for any tax increases. However, the report reveals that the state’s government has grown substantially since then, with spending increasing by an average of 5.5% per year.
This growth is even more remarkable when compared to the state’s population and inflation rate, which have only increased by an average of 2.3% and 2.4% respectively. This means that Colorado’s government has been growing at a much faster rate than its population and the cost of living.
One of the main reasons for this growth is the increase in revenue sources for the state. The report found that Colorado’s revenue has increased by an average of 5.7% per year, which is higher than the spending growth rate. This can be attributed to the state’s strong economy and job growth, which have led to higher tax revenues.
In addition, the report highlights the impact of federal funding on the growth of Colorado’s government. In the past three decades, the state has received significant amounts of federal funding, which has contributed to the expansion of government programs and services. However, this also means that the state is becoming increasingly reliant on federal funds, which could be a cause for concern in the future.
The report also examined the different categories of state spending and found that education, healthcare, and transportation were the top three areas of growth. This is not surprising, as these are essential services that require adequate funding to meet the needs of the growing population.
Despite the growth of government, the report also acknowledges that Colorado has maintained a relatively low tax burden compared to other states. This is due to TABOR’s tax limitations, which have kept taxes in check and prevented them from growing at the same rate as government spending.
However, with the state’s government continuing to expand, there are concerns about its sustainability in the long run. As the report states, “Colorado’s government is growing at an unsustainable pace, and without significant changes, it will become increasingly difficult to balance the state’s budget.”
So, what can be done to address this issue? The report suggests implementing cost-saving measures and reducing the size of government, as well as finding alternative sources of revenue besides taxes. It also calls for a re-evaluation of the state’s reliance on federal funds and the need for more responsible and efficient spending.
Despite these challenges, there is still a lot to celebrate in Colorado’s government. The state has a strong economy, low tax burden, and a commitment to fiscal responsibility. However, it is crucial to address the issue of government growth to ensure a sustainable future for Colorado.
In conclusion, the Independence Institute’s report sheds light on the growth of Colorado’s government over the past three decades. While the state has experienced significant progress, there are also concerns about its sustainability. It is up to the state’s leaders and citizens to work together and find solutions to ensure a responsible and efficient government that benefits all Coloradans.
