Posted by Ed at AFT

A nationwide effort, apparently fielded by the Libertarian Party’s 1980 presidential ticket, is underway to pass Colorado style Taxpayers’ Bills of Rights (TABORs) across the nation. Over the last two years there were legislative efforts in more than half the states to refer these initiatives to the voters. Each was defeated. But this year it could get on the ballot in eight states via citizens’ petitions. Press reports  indicate that the front group for this, Americans for Limited Government , and its top official, Howard Rich, have already spent more than $7 million, largely on efforts to get voters to sign petitions for TABOR and other initiatives.  More will be spent as we move into the fall campaign.

The real experts on the fiscal ins and outs of TABOR are at the Center on Budget and Policy Priorities. But at its core, TABOR is an expenditure limitation.  Under it, in any give year, the change in public expenditure cannot exceed the change in the consumer price index and population growth for the state or locality to which it is applied.  TABOR proposals typically have additional provisions, including a mandate that tax rates can’t be increased without a vote of the people.  But the real fiscal impact is found in the cap.  TABOR supporters say its goal is to force government to make the same decisions that any family makes around the kitchen table. 

If government purchased the same goods and services as a family, that might make sense.  But government purchases services that have inherently higher rates of cost increase.  For example, healthcare costs have grown by 9 percent or more in recent years while CPI has grown by about 3. Through Medicaid and related programs as well as healthcare benefits for employees, states spend a much larger share of income on healthcare than families.  Under TABOR, a state would have to choose to either cut healthcare services and benefits or cut something else.

In any give year the impact of TABOR is hard to determine. But over time, as in Colorado, TABOR has a devastating impact.  I plan to be writing a lot about TABOR in the coming weeks. It creates a window for looking at the financing of public education; for how voters feel about public service and their Democracy; and about the role of money in that Democracy. And understanding its backers helps you understand a lot about contemporary education politics in America, particularly on the subject of vouchers (a point which Julie has already gotten).