The Kim Monson Show has been reporting on corporate welfare for the past three and a half weeks. This includes two articles: The Colorado Office of Economic Development’s Policy of Corporate Welfare and Tax Incremental Financing and Corporate Welfare. Below is a summary of the corporations discussed with the total amount of corporate subsidies received from different Colorado state agencies as calculated by Good Jobs First.
It is important to keep two key elements in mind when reviewing this information. First, the Colorado State Constitution specifically states in Article XI Section 2 “no aid to corporations” with very few and limited exceptions. It concludes:
“Nothing in this section shall be construed to prohibit any city or town from becoming a subscriber or shareholder in any corporation or company, public or private, or a joint owner with any person, company, or corporation, public or private, in order to effect the development of energy resources after discovery, or production, transportation, or transmission of energy in whole or in part for the benefit of the inhabitants of such city or town.”
Second, The Urban Renewal Legislative Declaration CRS 31-25-102 needs to be referenced in regards to government assistance, specifically with the use Tax Incremental Financing (TIF). It states:
“(1) The general assembly finds and declares that there exist in municipalities of this state slum and blighted areas which constitute a serious and growing menace, injurious to the public health, safety, morals, and welfare of the residents of the state in general and of the municipalities thereof; that the existence of such areas contributes substantially to the spread of disease and crime, constitutes an economic and social liability, substantially impairs or arrests the sound growth of municipalities, retards the provision of housing accommodations, Colorado aggravates traffic problems and impairs or arrests the elimination of traffic hazards and the improvement of traffic facilities; and that the prevention and elimination of slums and blight is a matter of public policy and statewide concern in order that the state and its municipalities shall not continue to be endangered by areas which are focal centers of disease, promote juvenile delinquency, and consume an excessive proportion of its revenues because of the extra services required for police, fire, accident, hospitalization, and other forms of public protection, services, and facilities.”
“ (3) The general assembly further finds and declares that the powers conferred by this part 1 are for public uses and purposes for which public money may be expended and the police power exercised and that the necessity in the public interest for the provisions enacted in this part 1 is declared as a matter of legislative determination.”
We should not be extending “aid” to corporations in the form of tax credits/rebates, grants, training reimbursements, and all other types of subsidies. Reviewing the TIFs that have been extended in “urban renewal areas,” one can only conclude that there has been tremendous misuse and abuse of TIFs.
TOP COLORADO SUBSIDIES, ALSO KNOWN AS “CORPORATE WELFARE.”
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We will continue our reporting on corporate welfare within the state of Colorado. We believe it is an important conversation to have. Our intent is to motivate you to become involved. Citizen participation is key to bringing the misuse and abuse of taxpayer money for the benefit of “select” corporations to an end. Colorado communities have been successful in stopping the flow of “corporate welfare.” We must hold our PBIs (Politicians, Bureaucrats and Interested Parties) accountable for their actions. Stand for Colorado!