CHEWING THE FAT:

THE SMALLER GOVERNMENT COMMITTEE

WANTS TO TAKE A BITE OUT OF
BIG CITY GOVERNMENT

by Kate Tarasenko

[Originally published in the Rocky Mountain Bullhorn (Fort Collins, Colo.),

March 24-30, 2005, pg. 7]

Emboldened by the city of Littleton’s recent repeal of its grocery sales tax, Libertarian mayoral candidate Mark Brophy and his wife Mary, through
their Smaller Government Committee, decided that eliminating Fort Collins’ 2.25 percent grocery sales tax was one way to force the city to come up
with what they'd consider a more fiscally responsible budget. Last summer, they convinced 7,000 registered voters that the issue deserved a place on
the ballot.

Although the question didn’t find a forum in November’s general election – denied by both the City Council and a district judge who ruled against the
Brophys in their lawsuit against the city – the voters will finally have their say in April on Ballot Issue 1.

The Brophys say that Colorado, unlike Massachusetts and Minnesota, from which they respectively hail, "is one of only a handful of states that taxes
its groceries."

Calling it "regressive," they charge that a tax on food items is especially burdensome to the city’s low-income residents. "Two-thirds of the people
who are eligible never apply to Fort Collins’ annual rebate program," said Mary in a recent interview. The program, which refunds $40 to qualifying
households, will be expanded as a result of a recent City Council vote.

While even some council members concur that the grocery tax is regressive, the "No on 1" opposition has grown to a well-funded contingent (raising
$55,030 compared to the Smaller Government Committee’s $9,218), and boasts several high-profile community entities and members, includ-
ing: former state senate candidate John Kefalas, who helms the Colorado Tax Fairness Project; Kim Jordan, co-founder of New Belgium Brewing
Company and head of the Downtown Development Authority; former CSU president Al Yates; and Tom Sutherland. The Chamber of Commerce
states that eliminating the tax, even at its proposed phase-out over the next three years, is a "crude response" that will create more budget problems
than it will solve.

Ed Stoner, another Fort Collins resident who speaks for the "No on 1" campaign, has said that the projected loss of revenue of over $5 million as a
result of a grocery tax repeal could seriously affect the average citizen’s quality of life, and potentially compromise the community’s standing as "one
of the most desirable places to live in America." Fort Collins recently placed among the top 100 "best cities" to live, scoring high for cultural ameni-
ties, diversity of local commerce, and proximity to outdoor recreational opportunities.

"No on 1" also contends that many essential city services, such as library hours and police and fire protection, will suffer if the general fund is
allowed to shrink further than the nearly $6 million shortfall it has seen over the past three years.

The Smaller Government Committee disagrees that basic services will be threatened, but challenges the City Council to budget "more judiciously and
eliminate waste," even if it means downsizing or shutting down entire departments and offices. They’ve specifically targeted the Human Relations
Commission, the Office of Neighborhood Resources, and Parks and Natural Areas as either over-staffed or superfluous to an already "bloated" city
budget.

The forces behind "No on 1," as well as individual city departments and offices, have offered up several scenarios of their own, the various
permutations of which also result in drastic limitations or closure, including the city’s support of Project Self-Sufficiency, Volunteers of America
and the Crossroads Safehouse.

The question they ask, however, is, ‘At what cost?’

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