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Colorado Referendum Targets Revenue Cap

Easing restrictions would free up more tax dollars for schools and colleges.

To some Colorado residents, Referendum C is the best chance to spare the state’s schools from deep budget cuts. To others, the ballot measure—which will go before voters Nov. 1—represents a steep tax increase and gives lawmakers too much power over how state revenues are spent.

Referendum C is a proposed five-year suspension of Colorado’s Taxpayer Bill of Rights, or TABOR. TABOR is a voter-approved 1992 constitutional amendment that imposed a formula-driven cap on state spending and required the state and local jurisdictions, including school districts, to give back to taxpayers any revenues in excess of the cap.

“It is by far and away the most restrictive tax and spending limitation in the country,” said Wade Buchanan, the president of the Bell Policy Center, a think tank in Denver. “It really is a measure that gives fiscal decisionmaking powers almost...