Taxpayer Bill of Rights (TABOR)

What It Does and How It Could Harm People with Disabilities

Summary of Bill:

Rep. Frank Lasee (R-2) and Sen. Robert Welch (R-14) are the co-sponsors of AJR 55, otherwise known as the Taxpayer Bill of Rights (TABOR).

• The bill amends the State Constitution.
• It significantly changes the way state government raises and spends public money. TABOR puts a cap on taxing and spending using a formula.
• No state taxes and spending could exceed the cap unless a majority of the voters approve in a referendum.

Amending the State Constitution:

Amending the State Constitution is more complicated than passing a regular bill. TABOR needs to pass the legislature during two legislative sessions in a row. After the second approval by the legislature, a majority of the voters must approve the amendment in a statewide referendum. The Governor does not play a role in this process; he cannot veto TABOR.

TABOR is under consideration by the legislature for the first time this year. If it passes this spring or summer before the November 2004 election, it could be considered again by the legislature at the end of the year or in 2005. It could then be put before the voters as early as April 2005.

Impact on Public Services:

All public services could be affected:

• State services, including Medicaid and long-term care programs; vocational rehabilitation; the correctional system, including state prisons and parole; state parks; and other state-funded programs.
• County funded and provided services, such as human services; jails; county parks; public transportation; road building and repair; public safety; county parks maintenance; and others.
• City, town, village and other municipality services, such as fire, police, libraries, public school regular and special education; road repair; parks; and others.

Direct Impact on People with Disabilities:

Legislation similar to TABOR has passed in other states and has devastated public services for people with disabilities. For instance, Colorado has made deep cuts in its Medicaid program, reduced mental health services, and dropped spending on education to last in the nation. The Council is very concerned that TABOR will have a similar effect in Wisconsin.

• Special education services are already underfunded; with a formula cap, it is highly unlikely funding will ever increase to improve or even maintain current services.
• Medicaid pays for a variety of health and long-term care services that people with disabilities depend upon to live.
• Because of increases in the number of people served and increases in costs, especially for prescription drugs, the Medicaid budget has been growing at a rate greater than the TABOR cap would allow.
• Most Medicaid services used by people with disabilities are considered OPTIONAL by federal law. Federal law requires all states to provide core Medicaid services but allows states to choose to provide additional services. If Wisconsin’s Medicaid budget has to be cut because of the TABOR cap, Wisconsin could stop providing optional services. Here are some of the optional services provided in Wisconsin:
1. Dental services
2. Eyeglasses
3. Home and community based services
4. Personal care services
5. Medical transportation
6. Mental health and substance abuse services
7. Case management
8. Medical equipment and supplies
9. Physical and occupational therapy
10. Speech, hearing and language disorder services
11. Intermediate Care Facilities
12. Respiratory care services for ventilator-dependent individuals
13. Mental health crisis intervention services
14. School medical services

WCDD Position on TABOR:

The Council is opposed to TABOR in any form. The Council is very concerned that TABOR will have the same effect in Wisconsin that it has had in other states. The Council believes the following:

• TABOR would have devastating effects on services for people with disabilities.
• Fiscal restraints have no place in the State Constitution. Keep responsibility for taxing and spending decisions in the legislature. Legislators are elected to make these decisions.
• TABOR needs a complete and comprehensive public debate prior to action by the legislature.
• Exemptions to revenue and spending caps for one public service reduce the amount of funding available for other public services. If public safety services such as police and fire are exempted under TABOR, education and health care will experience additional cuts because of the overall cap in growth of public services.

What People Can Do About TABOR:

People concerned about TABOR should contact their legislators. Legislators can be called and visited when home in their districts or at their Madison offices. Contact the toll-free Legislative Hotline at 1-800-362-9472 for information about your legislators and to leave messages for them.

Wisconsin Council on Developmental Disabilities
April 14, 2004