From Western Resource Advocates (Jennifer Talhelm):
DD secures an important down payment for Colorado’s Water Plan, but full funding is still needed
A coalition of environmental and sportsmen groups today hailed passage of Colorado Proposition DD to help conserve and protect the state’s rivers and streams and drinking water. The coalition – which includes Conservation Colorado, Environmental Defense Fund, Trout Unlimited, Western Resource Advocates, American Rivers, Business for Water Stewardship, and the Colorado Water Trust issued the following joint statement:
“Passage of Proposition DD is a big win for Colorado and the quality of life we enjoy here. Taxing the revenue from legalized sports betting will create a dedicated down payment to help ensure that Colorado has healthy rivers and enough water for all. Still, it’s important to remember that this is just the first step toward addressing the growing gap between the water we have and the water we need.
“Four years ago, Coloradans came together to create Colorado’s Water Plan to protect all the things we love about our Colorado way of life – from healthy flowing rivers, to farming and ranching, and even beer. Our rivers contribute over $9 billion annually to the state’s economy, yet Colorado has not lined up adequate funding for the plan, despite overwhelming bipartisan support from across the state.
“Proposition DD will help generate a much-needed revenue stream to improve wildlife habitat, protect our agricultural heritage and the open spaces that come with it, and strengthen our economy. But the plan estimates the total need to be $100 million a year for the next 30 years, and we must keep working to ensure Colorado fully funds our water future.”
Proposition DD places a 10 percent tax on casinos’ profits from sports wagers, up to $29 million annually, and the majority of the revenue raised will go to implementing Colorado’s Water Plan. The annual funding is expected to be between $10 million and $15 million annually in the first few years.
From The Colorado Independent (John Herrick):
It was a squeaker, but sports betting will be legal in Colorado beginning in May 2020.
Voters on Tuesday approved a ballot measure 51% to 49% to legalize and tax betting on certain professional and collegiate games at casinos and online, according to results from the Colorado secretary of state. The vote was too close to call until mid-afternoon Wednesday. The Associated Press called the race at 2:33 p.m.
Revenue from a 10% tax on the net proceeds companies make on sports betting will help pay for some of the state’s critical water needs. It is, in other words, a narrowly focused tax targeted for a widespread need.
The vote was far from the slam dunk many expected. While the success of its sister ballot measure, Prop CC, was always uncertain, Colorado voters have historically been more receptive to so-called sin taxes.
But the measure had critics on both sides of the political spectrum. For conservatives, the question about raising taxes may have been a non-starter. And for liberals, a regressive tax paid by gamblers, some of whom may struggle with addiction to gambling, perhaps was too problematic to support.
“This has always been a white-knuckles job,” said Josh Penry, a former Republican state Senator and political strategist who worked on the Prop DD campaign. “There is real skepticism. It’s not a traditional right-vs-left issue.”
More than 90% of that new tax revenue, estimated at an average of $16 million per year, and as much as $29 million, would help pay for managing the state’s dwindling water supplies. That tax revenue alone is not enough to meet the state’s water needs, but in the minds of most of its supporters, it represents the best shot yet to pay for the general projects outlined by the 2015 Colorado Water Plan.
“The Colorado Water Plan will have a permanent, dedicated funding source,” said Becky Mitchell, the director for the Colorado Water Conservation Board, in a statement. “Sports betting tax revenue for the Water Plan will support critical environmental, agriculture, and storage projects as well as promote outdoor recreation opportunities across the state.”
Coming up with the money to help better manage Colorado’s water supplies is seen as critical to maintaining the state agriculture and recreation industries and preserving healthy river ecosystems threatened by slow flows and warming waters. The estimated cost of implementing the water plan is $100 million a year.
Lawmakers have struggled to find that money. They pulled together nearly $30 million in one-time money for water projects and planning last session, a historic yet insufficient amount. Prop DD, which was referred to the ballot by state lawmakers, was seen as the best shot at getting at least some funding and getting it fast.
“This is not the best way to fund such an important need, but we have to take the opportunities that come to us,” said Scott Wasserman, the president of the Bell Policy Center, a left-leaning think tank.
Opponents had concerns about paying for the Colorado Water Plan because it calls for possibly damming rivers to build reservoirs. The margins of victory in Boulder and Larimer counties were tight, areas where projects to expand or build reservoirs are planned. The Water Plan also calls for lining irrigation ditches, upgrading flood gates and paying farmers to use less water.
The measure struggled despite a $2.4 million campaign to promote it. FanDuel Group, a New York City-based sports betting company, spent $1 million backing the measure, according to campaign finance records with the secretary of state. Other top donors include DraftKings, a Boston-based sports betting company, Twin River Casino Hotel from Rhode Island and the Colorado Gaming Association.
A coalition of environmental groups backed DD, including American Rivers, Business for Water Stewardship, Colorado Water Trust, Conservation Colorado, Environmental Defense Fund, Trout Unlimited, and Western Resource Advocates. The Colorado Farm Bureau also supported the measure.
Colorado already allows limited stakes gambling — under $100 — in the towns of Black Hawk, Central City and Cripple Creek. Some supporters saw Prop DD as a way to regulate underground sports betting.
“Black markets aren’t conservative and they aren’t good for Colorado. Bringing sports betting into the daylight, regulating it, and leveraging it for the benefit of our water future is a common-sense approach,” said House Minority Leader Patrick Neville, a Republican from Littleton, in a statement.
From the Environmental Defense Fund (Brian Jackson):
Water in Colorado — one of the state’s most important natural resources — scored a major win today when voters approved Proposition DD. Prop. DD will provide up to $29 million a year for water projects from revenue raised by legalizing and taxing sports betting.
This funding will support critical projects to implement Colorado’s Water Plan and keep Colorado the state we know and love, with healthy rivers, clean drinking water, productive agriculture and abundant recreation.
EDF and EDF Action were key advocates for Prop. DD. We are thrilled voters approved the measure because it shows Coloradans across the political spectrum care deeply about building a more resilient future for our state.
Closing the water funding gap
Colorado’s Water Plan identified a funding gap of $100 million a year for 30 years to conserve and protect key elements of the state’s water system, including the environment, in the face of climate change and a growing population. Prop. DD will provide an impactful down payment to fill this funding gap.
Achieving voter approval of tax measures is always challenging, especially in Colorado, but EDF, EDF Action and our partners in the state worked hard to earn broad support for Prop. DD. Every major newspaper in Colorado endorsed it, and there was strong bipartisan support among state leaders and lawmakers who referred the measure to the ballot.
Uncommon partners rally around common-sense water solutions
The list of Prop. DD supporters was long and diverse, including the Colorado Cattlemen’s Association, Colorado Municipal League, Colorado River District, Colorado Farm Bureau, Denver Metro Chamber of Commerce, Conservation Colorado and Western Resource Advocates, among many others. Working side by side with some of these unlikely allies paves the way for more collaboration to deploy the funding to Colorado’s highest water priorities and best projects.
The success of Prop. DD clearly demonstrates to our state lawmakers that water is a priority issue for Coloradans, and we hope policymakers will continue to focus on ensuring our water system meets our state’s needs for decades to come.
We can’t wait to roll up our sleeves to help effectively implement Prop. DD and usher in this important new era for water funding and resilience in Colorado.