In a rare move, the Colorado Capital Development Committee unanimously recommended that another legislative committee reject a bill that asked voters to approve a higher excise tax on alcohol and marijuana to fund a new mental health hospital in Aurora.
Sponsored by Rep. Bob Marshall, D-Highlands Ranch, and Sen. Judy Amabile, D-Boulder, House Bill 1301 proposes that all additional funds generated by the tax increase go to a new mental health hospital in Aurora. Hospital construction and operations will be a priority for the funds raised, with the remaining funds directed to long-term civilian commitment facilities yet to be built in Mesa County.
Under TABOR, any tax increase must be approved by voters.
Funding for mental health care has been a long-standing issue in Colorado, as several members of the Capital Development Committee have attested.
A bipartisan, bipartisan committee, the Capital Development Committee is responsible for reviewing funding requests for capital projects at state agencies, often public colleges and universities. It is very rare, if not unheard of, for a committee to ask another committee to vote a certain way on another.
At a committee hearing Thursday, Marshall told members his intent with HB 1301 and related ballot measures is to improve mental health care for the most severe cases, such as those requiring civil commitment or residential care. Marshall said these people are at the top of the mental health care “pyramid.”
“It’s a dire need that we’ve been addressing for years, and never once have we taken the initiative and moved on,” he said.
According to Marshall, the additional tax revenue would amount to about 3 cents per six-pack of beer, bringing in about $44 million annually.
Colorado has one of the lowest excise taxes on alcohol in the country, Marshall said, adding that representatives of the alcohol and marijuana industries have told him they would accept a tax increase if it were approved by voters rather than levied as a fee through an enterprise, which is the proposal proposed in another bill this session.
While committee members agreed that more funding is needed, they expressed concern about the bill.
Sen. Kyle Maleka, D-Thornton, the committee chairman, noted that the money usually goes to “the system” rather than specific projects, as the bill proposes.
Marshall argued that it was easier for voters to know where their money was going than if it would go to mental health in general.
“When we can point to something that’s more concrete, it’s a lot easier for voters to get their heads around it,” he said.
Sen. Rep. Nick Henrichsen, D-Pueblo, agreed with Malika, saying he didn’t want to start a precedent of creating a single funding source for capital development projects.
“I fully support the goals we’re trying to achieve here, but I’m personally frustrated with the law and the mechanism,” he said.
Tammy Story, D-Conifer, said she was also concerned about the length of the funding, especially since alcohol consumption is declining across the country.
“I don’t feel like there’s necessarily a sustainable or reasonable way to fund and sustain this structure of mental health facilities.”
Committee members voted 5-0 to submit a letter to the House Health and Human Services Committee, which is scheduled to hear testimony on the bill on March 18.
Committee Chair Lindsay Gilchrist, D-Denver, said she looks forward to hearing the bill in committee.
“I think this is a very important issue that we need to address in Colorado,” she told Colorado Politics. “We need a more appropriate place for individuals experiencing severe mental illness. I think Rep. Marshall offers a creative solution that has the potential to help the problem.”
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