Colorado voters on Tuesday overwhelmingly handed Proposition II, permitting the state to maintain tens of tens of millions of {dollars} collected via elevated tobacco and nicotine taxes that it will have in any other case needed to refund. That cash will probably be used to bolster the state’s new expanded preschool program.
Proponents of Proposition II claimed victory inside an hour after the polls closed, and the Related Press referred to as the race as effectively. By 8:23 p.m., the measure was main 66% to 34%.
“This yr, we noticed historic demand from Colorado households without spending a dime common preschool. Coloradans worth early childhood schooling and I’m thrilled folks voted in favor of offering extra funding for our free common preschool program that’s saving households cash, and this voter-approved measure will assist fund extra preschool for teenagers,” Gov. Jared Polis mentioned Tuesday night time. “Thanks to all voters who made their voices heard, and thanks for persevering with Colorado’s clear historical past of supporting early schooling.”
The Taxpayer’s Invoice of Rights, a constitutional modification voters permitted in 1992, requires that cash collected in extra of a tax’s projected income be refunded except voters let the federal government maintain the cash.
Voters permitted the elevated state tobacco and nicotine taxes in 2020 via the passage of Proposition EE, which directed income collected below the change to fund what the state calls common preschool in Colorado.
When Democrats drafted EE within the legislature, nonpartisan legislative employees predicted the elevated taxes would generate $186.5 million in new income a yr. However the income has been a lot larger than that — at round $208 million — which is why Proposition II was positioned on the November 2023 poll.
The passage of Proposition II means the state can maintain about $24 million in tobacco and nicotine taxes collected within the 2022-23 fiscal yr, which ended June 30, in extra of the projections for Proposition EE. It additionally lets the state maintain any future income collected in extra of the EE income projections.
It’s possible that Proposition EE revenues will enhance sooner or later. The taxes on a pack of cigarettes below Proposition EE are presently $1.94 and are set to go as much as $2.64 on July 1, 2027. The tax on different tobacco and nicotine merchandise is 50% and set to rise to 62% beginning in July 2027.
If the measure had failed, the tax income collected above the Proposition EE projections would have been returned to nicotine and tobacco wholesalers and distributors. Moreover, the nicotine and tobacco tax charges would have been lower to stop future extra income.
Proposition II was positioned on the poll this yr by the Democratic majority within the legislature via the passage of Home Invoice 1290. All 31 Republicans within the Normal Meeting, in addition to three Democrats, voted in opposition to the laws.
Colorado’s expanded preschool program started providing not less than 10 hours every week of instruction this educational yr to youngsters within the yr earlier than they begin kindergarten, in addition to courses for 3- and 4-year-olds with disabilities. Households don’t should pay any out-of-pocket prices.
The program has seen excessive enrollment, although the enlargement received off a rocky begin, with some faculty districts suing the state over funding points. The initiative has confronted scrutiny from state lawmakers, too, over how Gov. Jared Polis’ administration has rolled out the expanded preschool entry.
Preschool for All Coloradans, the difficulty committee that supported Proposition II, reported elevating $349,000. The prime donors to the group have been More healthy Colorado at $90,000, Save the Kids Motion Community at $86,000 and Gary Advocacy at $50,000. More healthy Colorado and Save the Kids Motion Community are nonprofits, whereas Gary Advocacy is a philanthropic restricted legal responsibility firm affiliated with nonprofit Gary Neighborhood Ventures.
There was no organized opposition to the measure.
