The Colorado Health Foundation
By Bill Lindsay
Future hospital improvements and expansions are in jeopardy, along with some 11,000 jobs in the health care industry. Health care coverage for at-risk populations – including children in low-income families – will face significant cuts. Our schools may need to slash health-related portions of their curriculum, such as physical education.
Those are just some of the ramifications of Amendments 60 and 61, and Proposition 101, three ballot measures that Coloradans will most likely vote on this November. If approved, the measures will hurt health care (and other essential services) statewide, especially in rural Colorado.
Let's break it down.
Amendment 60 cuts the school property tax mill levy in half – an extreme proposal by any standard. Proponents claim the state will provide the lost revenue, but given the fact the state already has made substantial budget cuts in recent years, that's not likely.
Coloradans for Responsible Reform – the coalition opposing these proposals – estimates at least 8,000 teachers would be laid off if voters approve Amendment 60. Classrooms will become more crowded and activities that emphasize healthy living no doubt will end up on the chopping block, especially in smaller schools.
Amendment 61 essentially eliminates any form of public finance for projects such as roads, schools and hospitals. The state would be prohibited from bonding, and that has serious ramifications.
For instance, construction of the new CU hospital on the Anschutz Medical Campus depended on selling hundreds of millions of dollars in bonds and certificates of participation, something the state would not be allowed to do under Amendment 61.
For local entities, including hospital districts, Amendment 61 requires that bonds be repaid in 10 years – an impossible standard for large projects. Many of Colorado's hospitals are public or quasi-public entities and thus would fall under this requirement. A current example: the Aspen Valley Hospital Board is considering expansion using revenue bonds paid back with hospital revenue – not tax dollars. But Amendment 61 requires them to be paid back in 10 years. The math simply doesn't work. Even leasing medical equipment (a common practice for many hospital districts) would be considered "debt" and not allowed without taking the matter to a vote of the people in a costly election. How are hospitals going to finance state-of-the-art or even basic medical equipment under these restrictions?
Proposition 101 drastically lowers the state's income tax – ultimately by $1.2 billion annually – forcing even greater cuts to the state's General Fund. Severe cuts to programs like Medicaid and Child Health Plan Plus (CHP+) are inevitable. Those cuts would be magnified by the loss of matching federal dollars. Not only will the availability of health care be compromised – especially for low income families – but there also will be greater unemployment.
The coalition estimates some 11,000 private-sector health care jobs will be lost as these various programs are cut back. In total, more than 73,000 jobs – in health care, construction, education and government – will be lost if these three proposals were to pass.
I believe these are the most harmful proposals yet to be seen on a Colorado election ballot. You can learn more by going to the coalition's website. Inform your colleagues and friends of the dangers and urge them to vote "no" on 60/61/101.
Colorado's health depends on it.
Bill Lindsay is president of Lockton Benefit Group in Denver and was the chairman of the Colorado Blue Ribbon Commission for Health Care Reform. Currently, he serves on the board of directors for the Denver Metro Chamber of Commerce, where he chairs the health committee. He is a nationally recognized expert in the field of insurance, employee benefits, health care and health care reform.
