WHAT NONPROFIT ORGANIZATIONS NEED TO KNOW ABOUT FLORIDA AMENDMENT 3 PRESENTED BY THE FLORIDA NONPROFIT ALLIANCE

Special Guest Presenters Deirdre Macnab, President, League of Women Voters of Florida Mark Turner, Public Policy Director, Colorado Nonprofit Association

Constitutional Amendments on 2012 Ballot 11 constitutional amendments on the 2012 ballot Require a 60% margin to become law All were generated by the Florida Legislature within the last 2 years No citizen initiatives on the ballot this year

Florida’s Tax Revenue in Comparison Florida is the 4 th largest state in the Union. Here is where Florida ranks in terms of overall tax burden: 46 other states have higher taxes as a percentage of personal income (1) 42 other states have higher tax revenue per person (1) 38 other states have a higher corporate tax rate (2)

Public Spending in Florida Here is where Florida ranks in terms of Elementary- Secondary per pupil spending: On average, the U.S. as whole spends $10,499 per pupil. Florida, on the other hand, spends $8,760, which puts us behind 37 other states. (3) Florida’s government workforce has shrunk over the last decade, and is now the smallest and the cheapest in the country on a per-capita basis. (4)

Amendment 3: State Government Revenue Limitation An attempt to impose a new formula for calculating the state’s revenue cap

The Colorado Example: TABOR Colorado adopted a similar provision in However, after state funding fell for schools, public safety, healthcare and transportation, Coloradoans voted to suspend TABOR in At this time, over 30 states have considered similar measures, but no other state has passed it.

A Vote YES on Amendment 3 would: Replace the existing state revenue limitation based on personal income growth with a new, more restrictive limitation based on changes in population and inflation Restrict government revenue (taxes, licenses, fees, fines, or charges for services) in good and poor economic times Limit the Legislature’s ability to increase revenue beyond what the formula allows

A Vote NO on Amendment 3 would: Maintain the existing state revenue limitation based on personal income growth Protect the state’s ability to provide the current level of government services Preserve the Legislature’s current flexibility in responding to budgetary concerns and changing economic conditions

Be Ready to Vote in 2012! 3 Ways to Vote: By Mail, Early or on Election Day Check your voter status at: You can update your: Address Name Political party Absentee ballot request Signature Help educate your friends and family Book the League to speak to your community, civic, religious or political organization

Questions for Deirdre?

Colorado’s Taxpayer’s Bill of Rights (TABOR) Mark Turner Director of Public Policy Colorado Nonprofit Association 455 Sherman St. Suite 207, Denver CO

“TABOR” A constitutional tax and expenditure limit approved by CO voters in Written by Doug Bruce, Colorado Springs lawyer and real estate developer Passed in 1992 with 53% of the vote after three previous attempts.

Colorado “TABOR” – 1992 Requires voter approval of any state or local tax, debt, mill levy or other “net revenue” increase Revenue limit: previous year’s revenue times growth in the inflation rate + population rate Revenue above the limit is “rebated” to taxpayers

Colorado “TABOR” – 1992 Requires voter approval to weaken existing state spending limits “Ratchet effect”- revenue limit based on lesser of actual previous year revenues vs. revenues allowed by the formula.

Colorado “TABOR” – 1992 ‘90-’01 General fund revenue boom- 7.8% growth per year on average, from $2.6 to $9.4 billion Between ‘96 and ’01, Colorado rebated $3.2 billion in “TABOR surplus” to taxpayers Legislative Council ‘93 report- –”TABOR's contribution to the state's economic prosperity, if any, cannot be statistically quantified.”

Colorado “TABOR” – recession - $1.1 billion in cuts, no TABOR surplus Ratchet: limits based on lower revenue base : Economy recovering but Colorado had both a shortfall and a TABOR surplus

Nonprofit Colorado: Economic Impact 67% increased requests to foundations in 2004 (Colorado Nonprofit Assn. Survey) 54% increased individual donor requests (Colorado Nonprofit Assn. Survey survey) Colorado ranked 43 rd in the nation in charitable giving (Catalogue for Philanthropy)

Governor Bill Owens (R) 2005 “State of the State” “General Fund dollars available under TABOR – after paying required Amendment 23 and Medicaid expenses – will not keep pace with the demands on the budget. As a result, we cannot take the steps we must take to build a brighter future for all of Colorado, and particularly our children.”

Colorado’s 2005 Referendum C Compromise between Governor and D legislature Suspended TABOR revenue limits from allowing the state to keep all revenues collected No effect on existing tax rates Eliminated the ratchet, reset the revenue base 85% of Colorado cities and counties have voted to “de-bruce” – i.e. suspend local revenue limits on property tax revenues TABOR surplus may return around 2014

Nonprofit Voice Project

Demand for services has grown. Revenues haven’t kept pace. Governor Hickenlooper FY Proposed Budget to JBC 24

Colorado’s Tax Burden Is Low (compared to other states) Legislative Council 25

Colorado Invests Less in Public Services (compared to other states) Colorado Fiscal Policy Institute,

Changes in Funding of CO Public Services 27 JBC Staff Documents; Ed News Colorado

TABOR and Colorado’s Future Colorado’s still a growing state but revenues aren’t keeping pace with demand Voters have the final say on increasing revenues and amending the constitution TABOR’s CPI (inflation) + population formula does not capture growth in costs of public services. –CPI measures what consumers buy not what governments buy

Thank you… Mark Turner Director of Public Policy Colorado Nonprofit Association 455 Sherman St. Suite 207, Denver CO

Questions for Mark?

Additional Resources Center for Budget and Policy Priorities Report on Florida Amendment 3: PICO United Florida “ NO on 3 Campaign”: Center for Lobbying in the Public Interest: Nonprofit Vote: