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TESTIMONY BEFORE THE MARYLAND HOUSE OF DELEGATES
My name is Joyce Thomann. My husband and I have been residents and taxpayers in Anne Arundel County, Maryland for 33 years. I am here to enthusiastically support House Bill 1206, the Maryland Taxpayers' Bill of Rights. I was born and raised in Colorado. Most of my family continues to live in Colorado. They have benefited from the 1992 enactment of the Taxpayer Bill of Rights to the Colorado Constitution. (The shorthand for this is TABOR.) Not only have they received a return of their own money because of TABOR, necessary services have not been curtailed or diminished (as had been predicted by those who opposed enactment of this legislation) but more importantly, they have benefited from the favorable tax climate which now exists in Colorado for individuals and businesses. My Colorado relatives are small business owners, farmers, State employees, teachers, homemakers and retirees. Our youngest son is employed by a major multi-national corporation which has a substantial presence in Colorado. Thanks in large part to TABOR, there is work in Colorado because employers have moved their businesses into the State or they have kept them there. TABOR freed up capital in the private sector which the private sector used to create jobs and boost productivity. With each new business came new employees, new home-owners, new taxpayers and increased revenue to the State. I think of the proposal before you more as "Kitchen-table Economics. The critical part of "Kitchen-table Economics" is having those impacted by the decisions participate in making the choices. A key part of the Colorado TABOR experience has been citizen participation. First, the citizens set the ground rules. Under "Kitchen-table Economics," you as husbands, wives, parents, grandparents, or simply as individuals set the ground rules for your own spending. Under House Bill 1206, the ground rules are reasonable and clearly spelled out as is the participation by those whose lives are impacted by the decisions being proposed. When Colorado voters first approved the Taxpayer Bill of Rights Amendment to the Colorado Constitution, the then Democrat Governor Roy Romer, had signs put up at some State borders saying, "Colorado Closed for Business." He and others who opposed this initiative predicted fire stations and schools would close, police protection would disappear, transportation would come to a virtual halt, medical care would be critically diminished or ended and various other disasters too numerous to name would occur. I'm here to assure you that Colorado is NOT closed for business, but rather has opened itself FOR and TO business. In fact, Colorado was once running ads in the newspapers of adjoining states asking for workers to come to Colorado. Although government is usually the single largest employer in any state and those individuals employed by the government who are also taxpayers certainly pay some of the bills, it is private enterprise and those they employ which pays the overwhelming majority of the bills. The stated purpose of Colorado's TABOR was not to STOP government from growing but rather to RESTRAIN its growth. To date, the Colorado General Assembly has chosen to always spend to either the TABOR limit or to the extent that revenues are available - but not to set aside any additional reserves. However, TABOR stipulates an emergency reserve of 3% of fiscal year spending. Therefore, in FY 2004, the Colorado State reserve was $245 million. Colorado does not have an economic "Rainy Day Fund" because the Colorado Legislature itself has chosen NOT to provide for one. Recently, Colorado taxpayers voted to approve Amendment 23 which, like Maryland's Thornton "Bridge to Excellence in Education" mandates increased funding on K-12 programs at a rate greater than inflation. This taxpayer mandated increase in spending has put Colorado Legislators and Republican Governor Bill Owens on a collision course with TABOR mandates. Reason: TABOR limits the annual growth in state spending to the rate of inflation plus population growth. Any revenues over that limit must be refunded to the taxpayers as an overpayment of taxes. The governor and the legislature want to keep the overpayment and also boost spending by $100 Million beyond the TABOR limit. Reports are circulating that Governor Bill Owens and legislative leaders have reached an agreement to place a $3.1 BILLION tax measure on the ballot. Putting this increase on the ballot for voter approval is required by TABOR. Returning to "Kitchen-table Economics" -- those Coloradoans being impacted by this Colorado decision will have the opportunity to vote it up or down. I think this is a great idea and I believe our Founding Fathers would also approve because it is the people that the government serves - not the other way around. I also believe the power of the citizens of this state to determine their tax obligations and how their money is spent should not be denied. In Colorado, the success rate of referenda to raise taxes for specific purposes tops 90%. But officials are forced to narrowly tailor their proposals and make a reasoned case for each increase. Again, I think this is the right way to go. I'm sure that you too support voter involvement. In fact, I'll be willing to speculate that come next year, many of you will be actively and enthusiastically seeking voter involvement. Since you trust us voters enough to ask for our vote when you are seeking election, I cannot help but believe that you would be equally trusting about allowing us to vote on how our money is spent. My Colorado relatives and other Colorado voters already have that privilege. I believe the Maryland Taxpayer Bill of Rights is a good piece of legislation whose time has come. The Taxpayers' Bill of Rights sets a reasonable benchmark for the scope of government spending and establishes a system of checks and balances. Therefore, I strongly recommend that you favorably consider House Bill 1206, the Maryland Taxpayers' Bill of Rights and vote it favorably out of Committee. Thank you for your consideration. |
