Ralph Lloyd: A warning on the TEL/TABOR Amendment, coming up for vote in November

The TEL (Tax and Expenditure Limitation) Amendment will be on the ballot in November 2006.

What this amendment states is that each year the increase in State and local funding is limited to 3.5% annually or by a formula that totals the rate of population growth plus the annual percentage increase of the CPI (Consumer price index.

At the end of each year half of all unspent money will be distributed to Ohio Income taxpayers, additional moneys may be distributed under certain circumstances. Each year approval by the legislature, the Governor and a majority of all eligible voters is required to approve any spending in excess of the limit. An eligible voter is defined as a registered voter, not just who voted in the last election.

This amendment also applies to spending by local governments using the same formula.

Colorado passed a TEL or TABOR (Taxpayers Bill of Rights) and the impact on Colorado Schools, Colleges, Local Governments and other State services was so severe that voters in November of 2005 SUSPENDED THE AMENDMENT FOR FIVE YEARS.

Ralph L Lloyd