If you offer food at no cost to everyone, more people will take it. What is the PTC rebate and how does it intersect with TABOR refunds?
This is simple. It was simple. It always has been simple.
If you offer food at no cost to everyone, more people will take it.
Given that nothing in this world is free, the money had to come from somewhere.
Taxing the rich will do: they need to pay their fair share and we have to think of the children.
So voters in this state approved a measure to greatly expand no cost school meals (among other things).
Unsurprisingly, now we find that there is a greater demand than we have money for. That is, per the CPR story linked first below, the "free" school meal program is short on money to give food to all that want it.
Let's get specific. Below is a quote from the CPR article:
“ ... there is a projected shortfall of up to $24 million this year and up to $50 million next year, Riley [Brehan Riley, executive director of the Office of School Nutrition with the Colorado Department of Education] said. The funding mechanism for the program was a change in the income tax of people who make more than $300,000. It was expected to make more than $100 million. However, both the Legislative Council Staff and the Office of State Planning and Budgeting are projecting less revenue from the measure than was originally anticipated — but it’s unclear whether less money is being collected or simply more students are eating for free."
Quite a disparity.
It's unclear from the article (and appears to be so too among the people at the Office of School Nutrition) whether this increase and/or lack of funds is due to less tax revenue coming in or whether it's more people than projected signing up.
My money would be on both. Those who would have to pay more have managed to stop/mitigate it somewhat, those that previously qualified for free lunches but weren't doing it for some reason are now eating, and surely there are freeloaders who do not need free food, but, "why not if it don't cost nothing?"
None of this, of course, matters much because in the end, we're obligated to offer it and pay for it.
Quoting the CPR article again,
"State Department of Education officials are providing several options to the joint budget committee. It’s up to the JBC to make the final call. One option is to find other funds in the state budget to cover the gap. Another is changing eligibility requirements for who eats free meals but there isn’t data yet on what that would look like, said Riley. A third option is to delay other parts of the ballot measure. It called for grants to boost raises for cafeteria workers, purchase food from Colorado farmers and ranchers, and support districts buying equipment for healthier cooking or to prepare more locally grown food. Those were supposed to go into effect next year. A delay on that part of the program would save $22 million, but could leave producers in a lurch."
There is no choice without consequence. There is not now, will never be, and has never been a free lunch.
One last nibble. Want to see what supporters were saying prior to this being on the ballot and just after it was voted in? Check out the second link below. Quite a contrast and something to remember for the next "free lunch" measure we vote on.
https://www.cpr.org/2024/02/22/colorado-free-school-meal-program-students-budget-shortfall/
https://www.rmpbs.org/blogs/news/free-school-lunch-colorado-november-election/
What is the PTC rebate and how does it intersect with TABOR refunds?
If you're like me you may not have ever heard of the PTC rebate, that's the Property Tax/Rent/Heat Credit rebate.
It's an income-qualified rebate from the state for elderly and disabled Colorado residents.** It takes tax money and doles it out to those that qualify to help them pay their property tax, heat, and/or rent. The maximum yearly payout is about $1044.
If you'd like more detail, check out the first link below.
The thing that brought this office to my attention was a press release that recently landed in my inbox. I took a screenshot of it and attached.
It points to an interesting intersection between this form of public assistance and TABOR refunds.
Per a law passed in the recent (Nov 2023) Special Session, TABOR refunds this year will not be paid on the normal tiered basis; that is, everyone who is eligible will get the same dollar amount, regardless of the taxes you paid in. That bill, for your reference, is linked second below.
Now, normally, one must file a tax return in order to get a TABOR refund. You don't need to have paid taxes per se**, but you do need to file.
Except, per the press release, you can also make sure to get your TABOR refund by also applying for a PTC rebate. That is, you don't need to file taxes, you can apply for the PTC rebate and, by doing so, you'll get your TABOR refund.
One needn't actually get the PTC rebate to get the TABOR refund either, mind you. According to an email response asking about that the press person at the Dept of Revenue said that applying for the PTC credit is enough.
One last niblet.
Per the PTC webpage: "Individuals who do not have a Social Security Number or Individual Taxpayer Identification Number (ITIN) may still be eligible for the PTC rebate but will also need to submit the Application for Alternate Identification Number (DR 0019)".
That is, if you are here illegally, you can still (whether you file taxes or no) apply for and receive both a PTC rebate AND a TABOR refund.
You can add this to a LONG list of "pull" factors that make this state attractive to those here illegally.
**You could make reasonable arguments about the wisdom of how TABOR surpluses are refunded, but you should remember when thinking this through that the state also collects sales taxes. Sales taxes which we all (even those who didn't pay income taxes) pay. Thus it's not quite accurate to say that paying no income taxes means you did not pay into the state surplus revenues at all.
https://tax.colorado.gov/PTC-rebate
https://leg.colorado.gov/bills/sb23b-003