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WHY SHOULD COLORADO EXEMPT THE UNEMPLOYMENT COMPENSATION FUND FROM TABOR’S DEFINITION OF FISCAL YEAR SPENDING?

Passed by Colorado voters in 1992, the Taxpayer’s Bill of Rights (TABOR) has proven to be the most significant policy change in Colorado in at least a generation. It applies to every level of government and is, by all accounts, one of the most restrictive and comprehensive tax and expenditure limitations in the United States. Over the course of a decade, TABOR has fundamentally altered the way government in Colorado operates and controls virtually every revenue and spending decision made in the state. Despite TABOR’s far-reaching effects, at first glance it seems to have little, if anything, to do with the unemployment insurance (UI) system. However, upon closer examination it becomes clear that TABOR prevents the UI system from functioning to the full benefit of employers, workers and the State.

Released May 2003

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