How to live with TABOR

1
How to live with TABOR

• DANIEL M. FINLEY
• COUNTY EXECUTIVE
• WAUKESHA COUNTY, WISCONSIN

2
Introduction to Waukesha County
3
The World Through the Eyes of a Legislator

• Anti-government
• Anti-spending
• High tax burden
• Driving away business and families

4
What is TABOR?

• GOAL - Restrict the growth of government -
  Require rainy day fund

5
Constitutional TABOR

• Statement of principle
• Amendment process
• Response to gubernatorial opposition

6
Statutory TABOR

• Formula-based
• Reserve requirements
• Referendum approval
• Exceptions

7
The Colorado Experience

• Shrinking government
• Spending growth limits
• Revenue growth limits
• Personal income, population and GNP grew

8
The Colorado Results

• 50th in the nation for prenatal and AODA
  services
• 48th in nation for K-12 spending
• 28 of school districts went to 4-day weeks
• 7th in the nation for high school drop-out rate
• Bond rating down graded

9
Lessons Learned from Colorado

• Services cant keep pace with growth
• Temporary cuts become permanent
• Flexibility limited
• Saving and planning are difficult

10
Wisconsin TABOR

• Controls spending
• Does not address mandates
• No linkage to services

11
Wisconsin Concerns

• Bond ratings
• Loss of financial incentives
• Politically irreversible
• Makes consolidation is extremely difficult

12
Strategies

• Fight! OR

13
How to Live with TABOR

• Be at the table
• Not in the constitution
• Mandate relief
• Link to services

14
How to Live with TABOR (continued)

• Avoid rigid formulas everything always changes
• Dont use Consumer Price Index
• Exemptions
• Incentives for consolidations and efficiencies
• Keep it simple

15
Conclusion

• Take your time and eliminate its weaknesses