Fiscal Discipline & Frugality
Bottom Line Up Front: We will make Colorado’s government lean but effective, much like a well-run business or household. We owe that to taxpayers. Dollars saved can either be returned to the economy (private sector use) or allocated to truly pressing needs (like addressing mental health or infrastructure backlog) without raising new revenue. As stewards of public funds, we commit to prudence, transparency, and thrift – the virtues of fiscal conservatism that ultimately benefit all by fostering a healthy economy and preventing debt or fiscal crisis. Colorado will be a model of budgetary responsibility, which will attract businesses (knowing taxes and finances are stable) and respect from citizens across the spectrum.
a. Guarding the Public Purse: We believe in Fiscal Discipline & Frugality as core principles of governance. Government should live within its means (like families do), spend taxpayer money wisely and sparingly, and avoid burdening future generations with debt. Every dollar the government spends was earned by a taxpayer – it must be treated with respect. Frugality isn’t about cutting muscle or necessary services; it’s about eliminating waste, inefficiency, and extravagance. It also means maintaining strong reserves for downturns (rainy day fund) and not growing government faster than the economy. Thomas Jefferson said, “We must not let our rulers load us with perpetual debt.” And indeed Colorado’s constitution (via TABOR) reflects voters’ desire for restrained spending and consent for new taxes. By practicing discipline, we ensure lower taxes (people keep more of their money), a stable business climate, and the ability to fund key priorities sustainably without crises.
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b. Current Colorado Situation: Colorado has TABOR which limits revenue growth to inflation+population unless voters approve more. This forced some fiscal discipline. However, in good times the state collected excess and refunded – which is good for taxpayers. Lately, there have been moves to weaken that (Prop CC in 2019 to keep excess failed; Prop HH in 2023 tried to siphon TABOR refunds to cover property tax reduction – voters rejected). The message: Coloradans value their refunds and a lean government. Also in 2020, voters lowered the flat income tax rate, and in 2022 further down to 4.4% showing appetite for smaller government. Meanwhile, state spending did increase a lot the past decade due to booming revenues and federal funds (the General Fund grew, plus a large budget flush with federal COVID aid). There’s concern that many new programs started with one-time federal dollars will create structural deficits once that money’s gone. A disciplined approach will be needed now to avoid future shortfalls or pressure to raise taxes.
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c. Our Plan for Discipline:
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1. No New Taxes Without Vote (and likely none period): We commit to respecting TABOR’s requirement that new taxes or tax rate increases go to voters. Under our administration, we won’t push for such increases; instead, we’ll manage within existing revenues (which naturally grow with economy). If a genuine need arises that requires funding beyond growth, we’d first reprioritize or cut elsewhere rather than seek higher taxes. Only as last resort would we consider a tax measure, and only with compelling justification to voters. But our priority is actually tax reduction (as covered in Income Tax Reduction section), which forces spending discipline. Lower revenue means tightening belts – which is good.
2. Zero-Based Budgeting: We will implement zero-based or priority-based budgeting for state agencies. Instead of assuming last year’s spending plus a little more, each department must justify their budget from scratch, identifying which programs are core mission and which are nice-to-haves or outdated. This process often reveals waste and areas to cut. Texas and other states have used similar reviews effectively. We’ll do it biennially or department-by-department in cycles. Results: trim fat and reallocate to top needs without growing total spending.
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3. Eliminate Waste and Duplication: We’ll instruct the State Auditor and possibly convene a citizen panel to find wasteful expenditures, overlap between agencies, or inefficiencies. For example, combine departments or back-office functions if feasible (shared services for HR/IT across agencies). End contracts that don’t deliver value. Stop funding programs that have proven ineffective (the audit reports often list underperforming grants or economic development incentives with no ROI). We’ll publicize a “waste report” each year showing what we cut – to build trust that we’re stewarding funds. Even small items matter (like not buying overly fancy office furniture or cutting down travel junkets). On travel: restrict non-essential travel and conferences; use Zoom more. On personnel: perhaps attrition reduction – as people retire, evaluate if positions can be left unfilled or consolidated. We won’t do mindless across-the-board cuts (which can hurt vital services), but targeted smart cuts guided by efficiency.
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4. Limit New Programs & Growth: If legislators propose new ongoing programs, we’ll insist they identify offsetting cuts or that they be pilot programs sunsetting in a few years unless proven. We’ll resist creating new entitlements or broad expansions that are hard to roll back. Government should focus on core functions (public safety, infrastructure, education, safety net for truly needy) and do them well, rather than expanding into every area of life. For instance, Colorado in recent years created a state family leave insurance program funded by a new payroll tax (Prop 118). That’s an expensive new social benefit. We might not repeal it since voters passed it, but ensure it’s managed frugally and possibly revisit if costs explode. We will be skeptical of Colorado establishing any new programs that duplicate federal ones or that private sector can handle.
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5. Manage Debt & Pensions: Colorado has low state debt due to constitutional limitations on debt. Good. We will maintain that. Any bonds (like transportation bonds) will be weighed carefully and put to voters. We prefer pay-as-you-go or saving up in a capital construction fund for big projects (plus leveraging federal infrastructure dollars rather than purely state debt). On pensions: PERA (public employee retirement) has had underfunding issues. We support reforms to keep it solvent long-term (the 2018 reform was step in right direction). We’ll ensure required contributions are made and adjust assumptions realistically (ensuring no hidden shortfalls). A healthy pension system avoids future bailouts by taxpayers. If further changes needed (like adjusting COLAs or retirement ages modestly for new hires), we’d consider to guarantee promises to retirees without straining future budgets. That’s fiscal responsibility.
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6. TABOR Refund Integrity: We will protect TABOR refunds. If surplus occurs, we won’t scheme to withhold it by reclassifying fees or fiddling with the cap formula. Prop HH was a lesson – voters saw through a complex property tax relief trade-off that permanently forfeited some refunds and they said no. We got that message: refund means refund. In fact, we may push to simplify refunds (right now they’re through temporary rate reductions and some targeted relief). Perhaps a straightforward rebate check or income tax cut for all is better. But whichever method, the concept is inviolate: that money belongs to taxpayers. Also, if we foresee surplus, better to cut tax rates proactively (to avoid government collecting excess in first place and then refunding – though refunds are politically popular too!). We did cut the rate to 4.4% after a big surplus triggered a temporary cut; maybe we institutionalize that.
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7. Rainy Day Fund: Colorado’s reserve is usually around 7-8% of general fund by law. We might push to gradually increase reserves to, say, 10-15% over time by saving a portion of surpluses before refund cap triggers. A stronger cushion means in recessions we don’t have to slash vital services or raise taxes. Being prudent in good times prevents crisis in bad times. Just as families have emergency savings, the state should for truly unforeseen needs. We’ll ensure these funds are used only in real emergencies, not tapped for routine extras.
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8. Lead by Example: We will set a tone of frugality from the top. The Governor’s office budget will be lean – no excessive staff or lavish spending. If the public sees leaders tighten their belts, it builds credibility to ask agencies to do the same. We’ll drive state vehicles that are cost-effective (no luxury SUVs unless needed for terrain), hold meetings in state facilities instead of expensive retreats, etc. Those symbols matter and can save at least some money.
9. Benchmark & Efficiency Measures: We want Colorado to rank high in efficiency metrics – e.g., cost per student, cost per mile of road maintained, etc., relative to outcomes. We’ll benchmark against other states and strive to improve. If another state delivers same service at lower cost, learn how and emulate. If we find redundant spending with local or federal overlapping efforts, coordinate to cut duplication (fiscal federalism can waste money if multiple levels fund same project).
10. Ending the Pandemic Spending Hangover: The federal ARPA dollars pumped billions into Colorado programs. Many are time-limited, but some state agencies might try to keep programs running as money dwindles by asking for state funds. We will be vigilant in sunsetting programs that were explicitly one-time. Use that money for one-time investments (capital, temporary aid) not permanent expansions. If any lingering COVID-era expenditures don’t have justification now, we’ll cut them.
By enforcing Fiscal Discipline & Frugality, we aim to avoid scenarios of deficits or sudden tax hikes. We saw Prop HH’s defeat, presumably partly due to distrust that government needed to keep more money. We will earn trust by proving we can govern efficiently. That in turn strengthens our case for reducing taxes further (if we show we manage fine at current revenue, voters may ok rate reductions or constitutional changes).