Fixing TABOR’s "Ratchet" Will Not Repair TABOR: Deterioration in Colorado Largely Attributable to Formula
Publication Date: April 2008
Author(s): Iris J. Lav
Special Collection: John D. and Catherine T. MacArthur Foundation
Keywords: Economic projections; Fiscal future; State budgets; Tax code
Coverage: Florida Colorado
Proponents of adopting a tight TABOR limit in Florida sometimes claim that Florida would not experience the same negative effects on the economy and public services that occurred in Colorado. They argue that Colorado's problems stemmed entirely from one feature of its TABOR, the so-called "ratchet." Since the Florida proposals do not include the "ratchet" feature, proponents say that comparisons to Colorado's experience of sharp declines in public services and deterioration in its business climate are not applicable.