(The Center Square) – Colorado voters will consider a ballot initiative in November that constitutionally requires specific state revenue to be allocated to road construction projects, but a new report says that if the state Legislature passes a bill, the initiative would become ineffective.
To help address the state’s road conditions, Initiative 175, also known as Restore Our Roads Colorado, would mandate that approximately $700 million of current Colorado state revenue be allocated to road transportation projects in fiscal year 2027-2028.
The Common Sense Institute Colorado report said the state’s tax or rate fees would not be changed under the ballot initiative, but noted the revenue would instead be directed to Colorado’s State Highway Fund to support local governments’ road construction projects.
The State Highway Fund is controlled by the Colorado Department of Transportation and is “primarily used for the maintenance of the state’s highway system,” according to the Colorado Legislative Council Staff.
DJ Summers, CSI’s director of communications and research operations, told The Center Square this week that state transportation funds go toward “electrification projects, mass transit opportunities and bus expansion lines.”
The ballot initiative would ensure that the majority of Colorado transportation funds go toward “roads, bridges and highways,” he noted.
CSI’s report estimated that the ballot initiative would cost Colorado $690 million in FY 2027-2028 and $1.04 billion by FY 2040.
However, the Colorado Legislature is considering House Bill 26-1430, which would prevent the state from spending this extra money on road construction projects. If the bill becomes law, it would only take effect if Colorado voters pass the ballot initiative.
According to the report, the bill proposal would limit specific state transportation taxes and fees deposited into the state Highway Users Tax Fund from Jan. 1, 2027, to June 30, 2030. Some of these rates and fees include lowering the gas tax from 22 cents to 14 cents per gallon and minimizing specific registration fees by 38%.
The report estimated the bill proposal would reduce funding to the Highway Users Tax Fund by almost $500 million in FY 2027-2028. On top of this, the report showed the bill proposal would reduce financing to the fund by over $500 million through FY 2029-2030.
HB 26-1430 has a sunset clause in 2030.
The Highway Users Tax Fund is the “primary source of highway funds in Colorado,” the state Legislative Council Staff said. It added that the fund collects revenue from transportation taxes and fees, which are allocated to the State Highway Fund.
The report noted the Highway Users Tax Fund’s revenue is “split between the State Highway Fund (60%), counties (23%), and municipalities (17%),” affecting “state and local transportation dollars.”
Colorado will not have “extra funding for road maintenance or construction,” Summers said.
As a state, Colorado has some of the worst highways in the country.
According to the Reason Foundation, Colorado’s highway system ranks 42nd in America in “cost-effectiveness and condition.”
