Click here to read the full report: http://www.alec.org/am/pdf/ALEC_Competitiveness_Index.pdf
Click here to read about Colorado’s economy: http://www.alec.org/am/pdf/richpoor/colorado.pdf
By Peter Marcus, DENVER DAILY NEWS
Colorado has the second best fiscal and economic policies in the nation, according to a conservative-leaning national think tank.
The American Legislative Exchange Council’s annual economic outlook report ranks Colorado second because of its gross state product growth, personal income growth, personal income per capita growth and population growth.
The report states that Colorado is positioned better than other states because of its limits on spending and low taxes.
“The historical evidence is clear: States that keep spending and taxes low exhibit the best economic results, while states that follow the tax-and-spend path lag far behind,” states the report. “Colorado, for example, was able to restrain government spending and tax burdens through the Taxpayers’ Bill of Rights, creating one of the strongest economies in the nation.”
Republicans, however, are concerned that Democrats are headed in the opposite direction, which they say would leave Colorado in a more precarious financial situation.
Rep. Ted Harvey, R-Highlands Ranch, pointed to a measure pushed by Democratic Sen. John Morse, D-Colorado Springs. Backed on a party-line vote and signed by Democratic Gov. Bill Ritter, Senate Bill 228 eliminated the 6 percent general fund spending limitation known as Arveschoug-Bird.
Morse and fellow Democrats argue that the restriction presented a “knot of conflicting fiscal mandates.” Proponents said the spending cap limited government from recuperating losses after severe cuts, such as during a recession.
But Republicans are concerned that Colorado could be headed the way of New York, which ranked last in the nation for fiscal and economic policies, according to the ALEC report.
“The reason why Colorado is doing so well is because it has constitutional guidelines that keeps the legislature — both Republicans and Democrats — from spending on projects that are not necessary at this time,” said Harvey.
Republican Sen. Greg Brophy, of Wray, says he is convinced Democrats will immediately begin looking into repealing or amending many TABOR restrictions. He is most concerned about the Interim Commission to Study Long-Term Fiscal Stability, a 16-member bipartisan committee on which he sits, that has begun meeting to develop budget and long-term fiscal recommendations.
Meanwhile, Harvey says TABOR is the reason Colorado is faring better than other states through the economic downturn.
“(Democrats) are doing everything they can to setup the rationale for doing away with TABOR, when in all actuality, TABOR is the reason why we are as fiscally sound as we are this year,” he said.
Distributed by Colorado Capitol Reporters
