Colorado Democrats Ask Voters to Give Up Billions in TABOR Refunds

Colorado voters will decide this November whether to let the state keep and spend billions of dollars that would otherwise be returned to taxpayers under TABOR. The proposal would weaken one of the nation’s strongest taxpayer protections and allow the government to retain an estimated $4.6 billion that would otherwise be refunded.

Adopted in 1992, TABOR limits the growth of government spending by tying it to inflation and population increases. The amendment also requires revenue collected above the cap to be refunded to taxpayers. When the state collects more than it is allowed to spend, that money goes back directly to taxpayers instead of being kept by the government.

TABOR was designed to force lawmakers to make difficult budgeting decisions rather than simply spending every dollar the state collects. By limiting the growth of government spending and requiring excess revenue to be returned to taxpayers, TABOR ensures that legislators must prioritize programs and allocate resources responsibly within a defined budget. Efforts to weaken or bypass the cap effectively acknowledge a reluctance to make those tradeoffs. Instead of evaluating existing spending and determining which programs are most effective, proponents are asking voters to give the government permission to keep and spend more taxpayer money.

This is not the first attempt to carve out an exception to TABOR. For years, politicians and left-wing advocacy groups have argued that the spending limit should be loosened to fund a variety of priorities. Whether the issue is education, transportation, housing, or healthcare, the argument is largely the same: government should keep more taxpayer money.

Meanwhile, Colorado’s budget has continued to grow. The state’s fiscal year 2027 budget totals nearly $47 billion. Before asking taxpayers to give up future refunds, Democrats should demonstrate that existing funds are being spent effectively and that core priorities are being addressed.

Supporters acknowledge that the full expansion would take years to phase in. Taxpayers, however, would begin losing refunds immediately. Those refunds help many families deal with higher housing costs, grocery bills, and other expenses. At a time when household budgets remain under pressure, keeping more money in government coffers is difficult to justify.

Colorado voters have rejected similar efforts before. In 2023, voters defeated Proposition HH, which would have reduced TABOR refunds while increasing the state’s spending authority. The outcome showed that many Coloradans remain skeptical of efforts to weaken TABOR’s limits.

Supporters have framed the latest proposal as an investment in children. But at its core, the measure asks voters to give up future TABOR refunds and allow the government to spend more. Colorado voters should reject the proposal and preserve the taxpayer protections they have supported for more than three decades.