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The Metro Mayors Caucus gave their initial approval yesterday to raising the Colorado sales tax to help fund FasTracks, which is facing a $2.2 billion shortfall.

Voters would have the ultimate say on whether the sales tax is raised in Colorado, and it would be up to RTD to put the proposal on the ballot. However, many of the 38 metro Denver mayors that comprise the Metro Mayors Caucus hoped that the city leaders unifying together would help garner support for the proposed tax increase.  

“There’s never a great time to raise taxes, but if we are going to get the entire FasTracks system completed, this is probably going to be the only time to make it work, to get the entire region behind it,” said Boulder Mayor Matthew Appelbaum, whose city’s corridor would likely not be built unless there’s a tax increase. “This is probably going to be the only time to make it work, to get the entire region behind it.”

RTD has attributed the FasTracks budget gap to a drop in sales tax revenue and an increase in costs for construction material.

Opposition

Jon Caldera of the Independence Institute said he believes that RTD knew from the beginning that FasTracks would run over budget. The outspoken FasTracks critic argued that the transportation department just wanted to break ground on the project because “it’s hard to turn back once you turn that first stubble of dirt.”

“When the economy was good, (a FasTracks funding shortage) was because commodity prices were too high. When commodity prices go through the floor, it’s because sales-tax revenue are slow,” he said. “It was such a faulty fiscal plan. It’s inexcusable.”

RTD spokesman Scott Reed called Caldera’s claim ludicrous, adding that FasTracks planners did everything they could at the time to truthfully project the cost and timeframe for building the project.

“No one accurately predicted the economic meltdown of this year or the massive increase in construction material costs last year,” he said.

Future

Appelbaum believes the public will support the tax increase if the FasTracks plan is well thought out, justifiable and the numbers make sense. 

“I think people have a fairly strong understanding that energy prices aren’t likely to go down and stay down; that the world has changed and having a full-fledged transportation network is far more important than it ever has before,” he said. “There’s a trade off here; the economy is lousy right now, but I think people understand why this is so important in the long run, both economically and environmentally. That’s why you take it to the voters — they get to decide.”

Reed said the RTD Board of Directors would be discussing the idea of putting the sales tax increase on the ballot in the upcoming months.

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