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Date: May 24, 2021
To: Members of the Colorado House Finance Committee
From: Leah Vukmir, Vice President of State Affairs
Re: Opposition to SB21-260
Chair Herod, Vice Chair Bird and distinguished House Finance Committee Members. My name is Leah Vukmir and I am the Vice President of State Affairs for National Taxpayers Union (NTU). I am testifying in opposition to SB21-260.
NTU is the oldest non-partisan taxpayer advocacy group in the United States. NTU is dedicated to taxpayers and the belief that citizens make the best decisions about their own money. We have consistently advanced policies to lower taxes, streamline government, and promote free markets.
We respectfully oppose SB21-260 in its current form and hope you will seriously reconsider the negative impact this policy is likely to have on the economic climate in Colorado as well as on the pocketbooks of your constituents and the many small businesses in your state. The ravaging effects of the global pandemic have placed enormous burdens on families and businesses.There could not be a worse time to implement the wide-ranging fee increases that are proposed in this bill.
Colorado businesses will invariably be forced to increase the prices of their services as a result of the additional fees included in this proposal. Families who have relied on these businesses to deliver goods and services during a time of quarantine and isolation are likely to forgo the convenience of these services if they are forced to pay more. The pinch will have a significant ripple effect across Colorado’s recovering economy.
It is also concerning that SB21-260 acts as an end-run around the taxpayers. Citizens and businesses across the Centennial State are guaranteed constitutional rights under TABOR. By using the term “fee” rather than “tax” the authors of this bill prevent this proposal from going before the voters. Additionally, the bill is carefully drafted to ensure that fees do not surpass threshold levels that would trigger voter approval as required by last year’s passage of Proposition 117 - another step that removes the voice of the taxpayers.
As a former state senator from the state of Wisconsin - someone who has also served on the senate finance committee in my home state - I understand the challenges you face as you look for solutions to the problems facing your state’s transportation infrastructure. In times like these, constituents expect you to carefully prioritize spending. Most Coloradans agree the focus should be on road and bridge projects to ensure their safety. SB21-260 goes well beyond this priority and places significant resources on multimodal transit, increasing electrification of the motor vehicle market, and commuter rail.
I respectfully urge you to consider alternatives to this current proposal. First and foremost, I would encourage a thorough audit of your transportation department along with an analysis of the department’s bidding process for transportation projects. Are there ways to make this process more competitive? Additionally, are there cuts in spending that can be made in other state agencies?
Have you considered other alternatives to bring in more revenue such as replacing your state’s gas tax with a vehicle-miles traveled tax (VMT) or imposing a VMT fee solely on electric vehicles? Have you looked into the possibility of entering into Public Private Partnerships, known as P3s, as an option for ongoing highway projects?
Coloradans have struggled with their home finances over the past year, much like the rest of the nation. Unfortunate circumstances have required the citizenry to stretch every penny and dollar in order to make ends meet. They are used to prioritizing their expenses and they expect their elected officials to do the same with the hard earned dollars they entrust to you. They also expect their constitutional rights to be respected. Please don’t ignore their will.
Respectfully,
Leah Vukmir
Vice President of State Affairs
122 C. Street NW, Suite 650
Washington, DC 20001
703-683-5700