What is TABOR?

TABOR is a state tax and expenditure limit that includes the following elements: it is a constitutional amendment; it restricts revenue or expenditure growth to the sum of inflation plus population change; and it requires voter approval to override the revenue or spending limits. In Colorado, where the so-called “Taxpayer Bill of Rights” or TABOR was adopted in 1992, public services have deteriorated significantly. For example, between 1992 and 2001, Colorado declined from 35th to 49th in the nation in K-12 spending as a share of personal income. Colorado now ranks 48th in higher education funding as a share of personal income— down from 35th in 1992. Between 1991 and 2004 — a period in which the percentage of children who are uninsured declined nationally — the proportion of low-income children who lack health insurance in Colorado doubled. Colorado now ranks last in the nation on this measure. In addition, between 1992 and 2002, Colorado declined from 23rd to 48th in the nation in access to prenatal care, a sign of funding shortages in local health clinics.

Allowing revenue or expenditures to grow with population and inflation may sound reasonable, but it falls far short of being able to fund the ongoing cost of government. In an era in which health care costs are growing far faster than inflation and populations are aging, limiting the rate of spending growth to inflation plus population growth forces annual reductions in the level of government services.

TABOR shrinks the scope of what government can accomplish and creates conditions that each year pit programs and services against each other for survival. And once such limits are embedded in a state constitution, they usually cannot be removed or modified. They undermine existing services for children, youth, and families and make any new initiatives virtually impossible to undertake.

In Colorado- the only state with a TABOR, voters decided in November 2005 to suspend their TABOR amendment for five years so that the state could begin restoring cuts in public services and avoid making even more drastic cuts. Yet organizations dedicated to shrinking government — such as Grover Norquist’s Americans for Tax Reform, Americans for Limited Government, the CATO Institute, and Americans for Prosperity Foundation, among others — are still pushing for the adoption of TABORs in other states. In 2005, TABOR proposals were introduced in about half of the states -- none passed. In 2006, TABOR legislation and ballot initiatives were pushed aggressively in at least a dozen states. In five of these states, signatures were turned in for initiatives, but the initiatives were thrown out by the courts. In three states, TABOR initiatives did make the ballot, but were soundly defeated.

pdf Click here for the status of TABOR proposals for the 2006 Legislative Session
How Might States Cut $162.7 Billion?: If a population-plus-inflation spending limit had been in effect for total state spending since 1990, state spending in 2004 would have been $631 billion rather than the actual figure of $793.7 billion.  In other words, states would have had to cut $162.7 billion from their annual budgets.  To place that amount in context, $162.7 billion equals...


Watch "The Real Story behind TABOR"

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Fixing TABOR’s "Ratchet" Will Not Repair TABOR: Deterioration in Colorado Largely Attributable to Formula
A Response to Americans for Prosperity’s Misleading Claims about Florida’s TABOR
The Tax Commission’s TABOR: A Path to Deterioration in Florida
Press Release
A Frigid Forecast for the Sunshine State: Proposed Revenue Cap as Damaging as Colorado’s TABOR
A TABOR at Heart: South Carolina's H. 3295 Spending Cap Proposal
A Response to the Independence Institute’s Attack on "The Real Story Behind TABOR” Video
Revised 10/5/06
Double Jeopardy For Local Services Under TABOR: Property Tax Increases Are Likely Result
» press release
» fact sheet
SOS (TABOR) Will Not Jumpstart Michigan’s Economy
A State of Decline: What TASC Would Mean for Nevada
A “Super” Bad Idea: Requiring a Two-thirds Legislative Supermajority to Raise Taxes Protects Special Interest Tax Breaks and Gives Budget Veto Power to a Small Minority of Legislators
A Taxpayer Bill of Rights by Any Other Name: Montana's "Stop OverSpending" Proposal is a TABOR
Education and Investment, Not TABOR, Fueled Colorado’s Economic Growth in 1990s
A Faulty Fix: Repairing the "Ratchet" Will Not Repair TABOR
The Same Old TABOR: Maine's "Taxpayer Bill Of Rights" Proposal Fails To Fix Flaws Of Colorado's TABOR
New Bells & Whistles but the Same Engine Pennsylvania’s Spending Limit Proposals Are Powered by the Same Formula as Colorado’s Failed TABOR
False Promise of Prosperity: For Kansas Economic Growth, TABOR May Do More Harm than Good
A Formula for Decline: Lessons from Colorado for States Considering TABOR
A State of Decline: What a TABOR Would Mean for Kansas
In a League of their Own: Colorado’s TABOR And Ohio’s Proposal Are More Restrictive Than Other Limits
Fiction And Fact: A Response To The Tax Foundation’s Distortion of Colorado’s TABOR
A State Of Decline: What A Tabor Would Mean For Ohio
The Flawed "Population Plus Inflation" Formula; Why TABOR's Growth Formula Doesn't Work
Is Colorado’s TABOR Creating Jobs?
Colorado’s Fiscal Problems Have Been Severe and Are Likely to Continue
Center on Budget and Policy Priorities
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