What you need to know about Proposition 110

What is Proposition 110?

Proposition 110 proposes amending Colorado statutes to:

1. Increase the state’s sales and use tax rate from 2.9% to 3.52% for 20 years.
2. Distribute the new tax revenue for transportation as follows: 45% to the state, 40% to local governments and 15% for multimodal transportation projects.
3. Permit the state to borrow up to $6 billion for transportation projects and limit the total repayment amount, including principal and interest, to $9.4 billion over 20 years.

Comparing Colorado’s Transportation Measures: 109 and 110

What is the community saying?

Denver South Economic Development Partnership
For decades, we have lacked the resources to maintain our roads, highways and local bus routes all across Colorado. We need a statewide solution that ensures local governments have the resources to meet demands, addresses high-priority projects on state highways, and promotes multimodal transportation options that reduce congestion. The Let’s Go, Colorado proposal–Proposition 110 will increase the state’s sales tax an additional .62% on the dollar. This revenue will address longstanding problems with funding transportation projects in the state.

Former Hickenlooper and Owens Budget Director Henry Sobanet
Proposition 109 means 20 years of new debt with no new resources to pay for it. Even during good times bond payments will necessarily come at the expense of other important priorities. A “yes” vote expecting the State to just “figure it out” will not work out, especially in a downturn. Here is what to expect: (1) Higher tuition for parents and students to make up for reduced State support for higher education; (2) Sweeping severance taxes into the General Fund to pay for the regular budget and not for water projects and other rural priorities; (3) Ironically, a hit to CDOT’s maintenance budget….this happened with 1999’s TRANS bonds and would again if the State pledges more than just General Fund money for the bonds.

Steamboat Pilot
Under Proposition 110, the city of Steamboat Springs would receive an estimated $14.2 million over the next two decades of the new sales tax, and Routt County would receive $62.6 million. Oak Creek and Hayden would benefit to the tune of $958,346 and $2 million respectively. In our area of the state, it’s important that we have well-maintained highways to transport residents back and forth between our communities as rising housing costs require many Steamboat workers to live outside of the city in Oak Creek, Hayden and Craig. Safety issues, such as rock slides, wildlife and adequate shoulders for our area’s “Share the Road” mindset, also need to be addressed, and Proposition 110 promises to provide funding to stay on top of these local transportation issues.

Mayor Jackie Millett, City of Lone Tree (Colorado Politics)
For an additional 6 cents in sales taxes on a $10 purchase, the measure creates a dedicated, sustainable source of transportation funding.  This generates more than $700 million in the first year, which will be bonded to create $6 billion to address state projects – a strong step forward toward addressing the CDOT project list.

The Bell Policy Center
When laid out that way, it’s clear what the proponents of the measure want: They want less money for Coloradans, while ensuring already wealthy bond holders get paid no matter what. Not to mention the initiative doesn’t put any money toward public transportation, bike paths, senior access ride, park ‘n ride, or other types of important transportation priorities. “Fix Our Damn Roads” may fix a few roads, but it will absolutely destroy Colorado’s road to prosperity. Coloradans need to reject this measure and restore some fiscal sanity to the state.

Kelly Brough, President and CEO, Denver Metro Chamber of Commerce (The Denver Post)
Our state leaders have focused on addressing our transportation funding, but they haven’t been able to make a dent in the need. This past year, the legislature focused on this priority, but their efforts fall well short of what is needed on an annual basis for transportation. Despite claims to the contrary, there is no magical pot of transportation money sitting in a secret closet at the state Capitol. The bipartisan coalition that is supporting Proposition 110 — including state, county and municipal elected officials and business, civic, labor and other groups from every part of Colorado — understands that partial solutions or simply hoping the problem will get fixed will no longer work.

The Denver Post Editorial Board
By creating a dedicated revenue stream to begin addressing a $9 billion backlog in transportation projects, voters will free up the General Assembly to spend growing general fund dollars on other priorities across the state (our state lawmakers will not be able to raid the funds generated by Proposition 110).

Colorado Counties, Inc.
In supporting Proposition 110 Authorize Sales Tax and Bonds for Transportation Projects, counties pointed to Colorado’s deteriorating transportation system and argued that the state cannot afford to expand and modernize its system without a new revenue source. Proposition 110 authorizes the issues of $6 billion in bonds along with an increase in the state’s sales tax. In doing so, Proposition 110 creates both a flexible statewide transportation solution and lets local communities identify their own transportation projects and prioritize their most urgent needs.

Westword
“If you want to fix our transportation system, you need to provide the resources guaranteed to do it. The multi-layered bank shots required to maybe, possibly get some percentage of the money that’s needed are a pretty big risk they’re asking motorists to take. So while it theoretically might look alluring as an ideological white paper, you need a reliable source of dollars when it comes to building roads. And that’s what we argue our plan achieves.”

The Sentinel Editorial Board
The plan lets elected officials, through appointed state officials and experts, to decide which projects are best for all of Colorado, and which make sense to build first, and when. The plan also realizes that one of the best way to improve roads is to keep so many cars off of them. Let’s Go Colorado would let state officials find ways to use mass transit, bikes and other commuting strategies get people where they need to go, saving money and promoting cleaner air. Most important, Prop 110 immediately raises the cash Colorado needs to implement badly needed fixes and improvements without causing problems somewhere else in the state. Prop 110 is fair, it’s sensible and it’s the right way to get Colorado moving.

Boulder County Commissioners
“The transportation system in Colorado is woefully underfunded,” said County Commissioner Elise Jones. “This initiative, if approved by voters, would greatly improve mobility options for residents of Boulder County and the State of Colorado.” Jones added, “The projects listed as part of Initiative #157 (now Prop 110) reflect those included in the Northwest Area Mobility Study, an exhaustive, collaborative regional effort undertaken by us and our northwest area government and transportation partners, which we unanimously endorsed.”