Amendment 61 calls for prohibiting borrowings by state and local governments and require voter approval for future loans. Local governments, including special districts and enterprises would be required to have voter approval for any type of loan and require the entity to repay the new debt within 10 years. The state government would be prohibited from any future borrowings.

Amendment 60 continues to damage government finances with the restoration of TABOR tax limits, cuts to the current mill levy rates in half by 2020, expiration dates for tax rate and revenue increases and a 10 year limit on future property tax increases. Enterprises and authorities are proposed to pay property taxes and taxing authorities shall lower their tax rates to offset the additional revenue.
Proposition 101 (“Concerning limits on government charges”) is intended to drastically reduce a wide range of state and local taxes and fees in Colorado. The first sentence of the measure reads, “This voter-approved revenue change shall be strictly enforced to reduce government revenue.” Preliminary estimates suggest a revenue cut to state government of $1.7 billion and $622 million to local governments. Proponents also intend the measure to impose new, lower spending limits in all cities and counties in Colorado.
While these proposed measures are being paraded as promoting government efficiency and reducing waste during an economic downturn, the real pending impacts includes crippling schools as 50% of their property tax revenue slips away and state transportation, light rail, and bridge projects come to a standstill without any new loans. Local governments, special districts and authorities start paying property taxes which forces the debt coverage ratios down and large water, sewer, storm drain infrastructure projects are decimated with 10 year bond repayment terms.
The mere threat of such a measure gaining ground will likely spike the level of 2010 debt approved in Colorado. If passed, the legal debate will shift to the courts for several years and a wave of consolidations will be studied while a new market for privatization will emerge as cash strapped enterprises and authorities disband and dissolve to ensure continued basic water and sewer services for their customers. Government officials and finance officers are shocked these items made the ballot and scared how citizens view government during an economic downturn. Even if Colorado dodges the silver bullet this time, the public will be closely scrutinizing any new rate, fee or tax increases for a very long time.