Fitch Ratings has reviewed the credit implications of three ballot initiatives which are going before Colorado voters on Nov. 2, 2010. Taken together, Fitch believes that Proposition 101, Amendment 60, and Amendment 61 will dramatically limit the flexibility of state and local governments in meeting their future operating and capital demands. School districts are especially vulnerable to the combined financial impact of the initiatives, estimated at $2.1 billion in local property taxes and $242 million in specific ownership tax (SOT) revenues. Given the loss of $1.2 billion in state income taxes imposed by Proposition 101, Fitch expects the intended backfill by
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