Number of children in poverty rises as fiscal knot tightens
Colorado's fiscal policies have largely abandoned the state's growing number of children in poverty. That is the conclusion of Leaving Children Behind: How Colorado's Fiscal Policies Hurt Our Most Vulnerable Citizens, a recent report by the Colorado Children's Campaign.
Under its current policies, Colorado is constrained not only in collecting revenue but also in spending the revenue it does generate. As a result, even as child poverty rates soar, Colorado is unable to provide meaningful increases in assistance to children and families living in poverty, according to the report.
Between 2000 and 2007, Colorado reported the country's highest increase in the percentage of children living in poverty. Over this period, the number of Colorado children living in poverty rose from 104,000 to 192,000, an 85% increase.
Because of tax and expenditure limitations such as the Taxpayer's Bill of Rights (TABOR), Colorado has been restricted in collecting revenue when compared to other states. As a percentage of personal income, Colorado's state and local tax collections decreased by about 4.5%, dropping from 9.6% in 1992 to 9.2% in 2006, according to the report. Colorado ranked 44th out of 50 states in terms of revenue collections measured as a percent of personal income.
Lower revenue means lower state spending. Total state and local government expenditures in Colorado, measured as a percentage of personal income in the state, actually decreased by about 5.5%, falling from 20.8% in 1992 to 19.7% in 2006, according to the report. In most other states, expenditures as a percentage of income increased. In fact, 41 states had a higher increase in expenditures relative to personal income than did Colorado.
As the Colorado Children's Campaign report highlights, public spending reduces poverty. Unfortunately, on numerous measures, Colorado's spending on children is low compared to most states:
- In 2004, Colorado spent $5,448 per child on programs that benefit children, ranking it 30th out of 50 states.
- In 2005, Colorado spent $116 per poor person on cash assistance, social services and medical assistance, placing it 47th.
- In 2005, Colorado spent $1,979 on social services per poor person, putting it at 29th.
- In 2005, Colorado spent $4,502 on medical assistance per poor person, ranking it 47th.
The report concludes that Colorado's current fiscal policies "challenge our ability to ameliorate the effect of poverty and to prevent child poverty in the future." The Bell Policy Center shares this concern. In our view, the state's lack of revenue is the primary factor constraining state services. We need to thoroughly re-examine our current revenue system if we are going to be successful in reducing the number of Coloradans living in poverty.
Chris Watney, president of Colorado Children's Campaign, discussed the report on Colorado Matters on Nov. 11.
– Debra Judy