Fixing TABOR’s "Ratchet" Will Not Repair TABOR: Deterioration in Colorado Largely Attributable to Formula

Publication Date: April 2008

Publisher: Center on Budget and Policy Priorities (Washington, D.C.)

Author(s): Iris J. Lav

Research Area: Economics

Keywords: Economic projections; Fiscal future; State budgets; Tax code

Type: Report

Coverage: Florida Colorado

Abstract:

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.