Referenda C & D
Legislative battle brewing after split results in last month's election

(12/01/2005)
By Tony Milo

Last month's defeat of Referendum D sets the stage for a legislative tug-of-war over how the state money freed up by Referendum C will be divvied among roads and bridges, health care, education and other state commitments.

Last month, when voters approved Referendum C but defeated its companion piece, Referendum D, the political fallout quickly followed. Within days, campaign allies began the scramble for their cut of the funds freed up by the temporary suspension of the Taxpayer Bill of Rights.

"We already agreed, if Ref. D failed, it would be 33 1/3, 33 1/3 and 33 1/3, for schools, colleges and health," said Senate President Joan Fitz-Gerald, as quoted in the Rocky Mountain News on the day after the election.

Fitz-Gerald's comment raised eyebrows - and plenty of ire - throughout the state's heavy/highway construction industry, which poured plenty of time and money into supporting both ballot measures. Within hours, industry leaders like Colorado Contractors Association Executive Director Tony Milo were busy reassuring folks that transportation projects would not be left out in the cold.

"Governor Owens and House Speaker Andrew Romanoff see things differently and have both recently committed to CCA that transportation will receive additional funds from the proceeds of Ref. C,'" Milo told CCA members in an e-mail. "CDOT has also been an active player in this debate, asserting accurately that a portion of the Ref. C money should go to improve roads and bridges."

Within days, Fitz-Gerald's spokesperson issued a statement clarifying the senator's stance. Chief of Staff Mary Alice Mandarich said Fitz-Gerald fully intends to honor the voters' intent to put new money to work on the state's highways.

Still, the incident gives the industry a glimpse of the battle ahead once the legislature convenes next year.

"We're going to have to fight for our fair share, but I think we're in the best position to claim it," Milo said. "C probably would not have passed if this industry had not stepped up to help support it the way we did."

Milo characterized the Nov. 1 election results as a "75 percent victory" for the state's heavy/highway construction industry.

By 52 to 48 percent, Colorado voters approved Referendum C, allowing the state to keep $3.7 billion that would have been refunded to taxpayers under the Taxpayers Bill of Rights.
They rejected - 49.4 to 50.6 percent - Referendum D, which would have let the state immediately borrow $1.2 billion for road and highway spending. As such, heavy/highway contractors will have to wait until the next legislative session to see how much Referendum C money can be spent immediately on transportation projects.

"It's certainly not all doom and gloom," Milo said. "The fact that C passed is a tremendous positive for the state of Colorado and ultimately, hopefully, for roads and bridges. The fact that C passed means there is money for transportation."

Milo said he's not worried that transportation projects could be slighted during the upcoming budget process. According to HB 1350, if Referendum D failed, the money from Referendum C would be split among education, health care, fire and police pensions - and transportation.

"The spirit of the governor and the legislators when they signed these referenda to go on the ballot was 'This is where we're the needs are,'" Milo said. "So with the same governor and same legislature in place, I think we'll be OK."

Milo said the industry's support for both ballot measures will also help ensure that roads and bridges are adequately funded when the legislature begins distributing the funds freed by the election.

Milo believes Referendum D's defeat was the result of three factors - lengthy and complicated ballot language, last-minute undecided voters and a lack of understanding.
"We think that right up until the day before the election, 15 percent [of voters] were undecided and that a lot of those people just split their votes between the two measures," Milo said. "We think there was also a lack of understanding that Referendum D provided the specificity and accountability that voters wanted."

Had Referendum D passed, bonds would have been sought to immediately fund 55 statewide road improvements targeted by CDOT last June. The work - a mix of urban, rural and mountain projects - was identified with input from city, county and state officials.

With those projects now off the table as "a list," CDOT Executive Director Tom Norton said the agency will have to re-assess its current plan (2005-2010) and, with the help of its planning partners, re-evaluate all projects to determine the highest priorities.

"When it referred Referendum D to the ballot for Colorado voters to approve, the legislature dedicated $100 million a year for 55 transportation projects," Norton said. "While we won't be able to bond to accelerate those projects, it's my hope the legislature will still honor at least that $100 million commitment for pay-as-you-go transportation projects."

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