Summary
- The Colorado Senate approves four bills Friday morning.
- Bills address billion-dollar state budget gaps.
- Special session called due to federal tax changes.
- Legislation includes budget controls and program
funding. - Bills now sent to the state House of Representatives.
Out of the four legislation, Senate Bill 25B-1
passed the Senate by the smallest margin, 19–16. In addition to allowing the
governor to suspend and reduce state funding if the reserve must be tapped by
up to 3% of the General Fund budget or if it is anticipated to fall below $1
billion, the bill would create a procedure for the governor to notify and
confer with the Joint Budget Committee regarding mid-year spending cuts
required to overcome a revenue shortfall.
Senator Judy Amabile, a Democrat from Boulder,
presented an amendment before the vote, and Senate President James Coleman, a
Democrat from Denver, sponsored the bill.
The bill’s backers argued that it would allow
the governor and the JBC to work together to reduce expenditure in the middle
of the year when there are income shortages, similar to the cuts that Governor
Jared Polis is expected to implement during the special session.
Four Democratic senators and every Republican in
the Senate voted against the bill.
Among those who did not vote was Senate Majority
Leader Robert Rodriguez, a Democrat from Denver, who expressed his “many concerns with this bill.”
“The unintended consequences, that I feel that
we’re seceding a lot of power to the governor, accountability and responsibility,”
he said.
In a 23-12 party-line vote, Senate Bill 25B-2,
which would permit the state to cover Medicaid services from reproductive
health care organizations, such as Planned Parenthood, from whom the federal
government has withheld Medicaid funds, passed the Senate with Democrats voting
in favor.
On yet another party-line vote, Democrats also
approved Senate Bill 25B-3. In order to ask voters if the state can utilize
additional funds collected for universal school meals to help cover expenditures
associated with the Supplemental Nutrition Assistance Program, the bill would
amend a ballot item that was introduced in November.
The bill was proposed after President Donald
Trump signed the federal Republican tax break and spending cut law in July,
which shifted some of the cost burden of SNAP onto states.
“While our congressional delegation has failed,
where they’ve decided to let families and vulnerable people go hungry,
Coloradans, in their impeccable wisdom, are stepping up,”
said Democratic Sen.
Katie Wallace, one of the bill’s sponsors.
By a vote of 32-3, Senate Bill 25B-5 was
approved by both parties. About $260,000 from the wolf reintroduction program
would be transferred to a state health insurance fund under the plan. It was
revised in committee on Thursday to still allow the catch and release of wolves
this winter.
The three senators who did not vote were
Democratic Senators Lisa Cutter, Tom Sullivan, and Katie Wallace. Sullivan
voted against the bill because he was worried about the way it was altered.
Which changes to federal tax law caused
Colorado’s revenue drop?
Expansion of the standard deduction, which
lowers federal taxable income for individual taxpayers, thus reducing the
income base for state income taxes linked to federal taxable income. Changes to
itemized deductions, including deductions for research and development
expenses, state and local taxes, and property purchases.
Significant changes to business depreciation and
interest deductions, allowing businesses to more quickly deduct the cost of
equipment and property. This results in lower taxable income for corporations.
Qualified business income deductions were
extended and expanded, especially benefiting large corporations. Elimination of
taxes on qualifying tips and overtime pay, resulting in reduced taxable income.
