Blake: And now: Ref C, Part II

Published May 10, 2006 at midnight

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And you thought the fight over Referendum C ended last November when it passed.

Nope. Jon Caldara, who had failed to derail it, is back with an initiative that would limit the amount of extra money it raises to what the sponsors predicted it would. The excess would be returned to taxpayers.

Round 2 of Ref C could be a major factor in the governor's race - presuming Caldara can muster the nearly 68,000 valid signatures needed by the Aug. 7 deadline, and a large advertising budget.

Caldara solicited Republican gubernatorial candidate Bob Beauprez to be the first signatory, and he obliged.

Why go after Beauprez instead of rival Marc Holtzman, who campaigned more vigorously against Ref C? "He's the likely nominee of the Republican Party and the likely governor," said Caldara Tuesday from a hospital bed. His appendix had burst Monday because "I was so excited by Bob's signing the petition."

Not that Caldara, head of the Independence Institute, is taking sides in the primary. He'd welcome Holtzman's signature too. "I do issues," he said. "Politicians always disappoint; principles never do."

Ref C permits the state to suspend normal spending limits for five years and keep excess revenues instead of returning them to taxpayers. Predictions last fall pegged the excess at $3.7 billion, but a fast economic recovery has already boosted that number to $4.25 billion. Optimists expect it to keep growing.

Under Caldara's plan, the excess each year would be divided by the number of taxpayers and their dependents. Each household would get a single check every fall. Unlike refunds under the Taxpayer's Bill of Rights, they wouldn't vary in proportion to taxes paid. Even if the excess grows no higher, Caldara said each of Colorado's 1.65 million households would get $330 over five years.

Caldara also brags that his system is better than TABOR in that the pot isn't first reduced by the 15 special-interest business tax credits that the legislature has authorized.

One more benefit he cites: Without his constitutional amendment, the state's spending base would be much higher after five years and every year thereafter.

Caldara is promoting the ballot issue as the "Home Energy Adjustment Tax" refund, a sort of rebate to help with high heating bills. But it has little if anything to do with your heating costs except that the state's coffers are bulging with higher severance taxes on oil and gas.

Caldara hopes the HEAT acronym is catchy but freely admits you could use the refund for any purpose.

It's late in the game for signature gathering and Caldara will need help from paid circulators. He said he is close to enlisting a company.

What surprised him was that nobody challenged the issue for allegedly violating the single-subject rule. That's a standard tack for initiative opponents. Even if they don't win the case they can delay the start of signature gathering because the Colorado Supreme Court likes to sit on such issues indefinitely.

Opponents will argue that although $3.7 million may have been an estimate, the voters in fact gave the state carte blanche to spend whatever extra it raises over the next five years.

Asked Tuesday if he would sign the petition, Marc Holtzman at first responded obliquely. He preferred to talk about his own new proposal - a $1.1 billion tax cut. He would cut the $4.25 million surplus back to $3.1 billion, the original estimate by the legislature. (It went to $3.7 billion during the campaign.)

His chances of obtaining such a tax cut from the legislature is slim to none, even if Republicans regain control of both legislative chambers.

Later he said he hasn't decided whether to sign the petition.

Help from the taxpayer: Rep. Bob Beauprez is back with one of his favorite campaign tools: The four-color flier printed and mailed at taxpayer expense.

Residents of a certain age in the 7th Congressional District just received a large card in the mail urging them to sign up for Medicare Part D drug coverage before next Monday's deadline "to avoid higher costs."

The franked mailer is legal since Beauprez never mentions that he's running for another office. It's viewed as a legitimate information piece for constituents.

Congress liberalized the rules on franked mailings several years back and Beauprez has exploited them to the hilt. During 2004, when he faced a challenge by Democrat Dave Thomas, he mailed out at least nine full-color fliers.

He snuck this one out in the nick of time: Mass franked mailers are not permitted within 90 days of the Aug. 8 primary election.

blakep@RockyMountainNews.com or 303-892-5119.

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