Log In


Reset Password
News Education Local News Nation & World New Mexico

Severance-tax fight looms

Water Congress worries about diverting money from water
Gov. John Hickenlooper delivers remarks to the Colorado Water Congress at its annual meeting in Denver on Thursday. Concerns have been raised over a proposal to shift severance-tax dollars from water projects to other parts of the state budget.

DENVER – A similar theme flowed through the Colorado Water Congress annual meeting Thursday: protect severance-tax dollars for water issues.

Gov. John Hickenlooper’s office has proposed shifting $47 million in severance-tax revenue to protect other parts of the state budget.

The state is facing constitutionally required taxpayer refunds because the state’s tax collections are expected to grow at a higher rate than inflation and population.

Because severance-tax revenues are coming in higher than expected, Hickenlooper’s budget office has identified the money as a favorable target. Revenue is generated from production of minerals like natural gas and oil.

Severance-tax dollars currently go to the Colorado Department of Natural Resources and the Colorado Department of Local Affairs for local-impact grants and wildlife conservation, among other needs.

Water projects are a key component of the tax dollars because of impacts from energy development.

Hickenlooper’s budget director, Henry Sobanet, said the state’s hands are essentially tied because of constitutional mandates on both spending – such as for education – and returning budget surpluses to voters. He said there are only a few areas of the budget to target because other aspects are protected.

“Our constitution is mandatory growing, spending and cutting taxes at the same time. It’s by default going to create uncertain results,” Sobanet told attendees of the Water Congress meeting.

For his part, Hickenlooper did not provide a concrete explanation when speaking, defaulting to Sobanet. He simply said of the concerns stemming from severance-tax dollars, “We’ve heard that loud and clear.”

Later in the day, during remarks to Club 20, an organization that represents Western Colorado counties, Hickenlooper indicated that there may be some flexibility.

“I understand that there will be a long, hearty discussion,” the governor said.

Several lawmakers who attended the convention, however, appeared determined to protect the severance-tax dollars for water projects.

“Where we have to hold the line ... is to say severance tax needs to go to water storage,” said Sen. Ellen Roberts, R-Durango. “That was the point of the severance tax. You cannot steal severance tax to put into other things.”

Another theme that emerged during the convention was conservation and efficiency.

A draft water plan has been submitted to Hickenlooper, taking a comprehensive look at the future of water in Colorado. One of the highlighted components of Colorado’s Water Plan is how to save and utilize every drop of water as Colorado faces a surging population that is expected to result in widespread water shortages.

A final water plan must be completed by Dec. 10.

“Every conversation about water has to start with conservation.” Hickenlooper said.

“It’s always good to remind the rest of Colorado about that reality,” he continued. “No one in Colorado should ever take water for granted. Water is the lifeblood of this state.”

Doug Kemper, executive director of the Colorado Water Congress – which represents water interests in the state – said it is imperative that conservation and efficiency be a centerpiece of conversations.

“We’ve been focusing very heavily as a state on conservation for the last 10 years,” Kemper said. “We’ve made huge steps in that area.”

But Rep. Don Coram, R-Montrose, said it is important to separate the two issues, pointing out that conservation and efficiency are really two different topics.

“There’s a misconception that efficiency and conservation are the same thing, and they’re not,” Coram said. “There’s a misconception that in Western Colorado, we have far more water than we need. That’s not correct.

“Western Colorado is certainly aware that we are part of the solution,” he added. “But we don’t feel that we need to stand it alone. We need help from the Front Range.”

pmarcus@durangoherald.com



Reader Comments