Complete Colorado

Colorado lawmaker’s nonprofit bankrolling progressive tax push

DENVER – State Rep. Lorena Garcia, a Westminster Democrat, has been working overtime to ensure a progressive state income tax initiative makes it in front of Colorado voters this November, including donating big bucks via a tax-funded nonprofit to the issue committee charged with getting the measure on the ballot.

If passed, Initiative 195 would raise the current flat tax rate of 4.4 percent to 7.4 percent for those earning more than $500,000, and increasing as incomes rise to a top rate of 8.4 percent for those earning more than $1 million. A majority of Colorado taxpayers might see a slight income tax reduction, with many eventually getting caught up in the graduated brackets, as they are not indexed for inflation.

Protect Colorado’s Future Coalition (PCFC), the group supporting the measure, had until Aug. 3 to turn in around 125,000 signatures that included at least 2 percent from each of Colorado’s 35 State Senate districts in order to meet the requirements for a citizen-led constitutional amendment. They just made it, turning in about 157,000 signatures.

Garcia’s tax-funded nonprofit

While the main effort is being led by former state legislator Chris deGruy Kennedy and the liberal policy think tank, Bell Policy Center, where he is the president, Garcia appears to be the 11th hour savior of the effort.

As the signature gathering deadline grew closer, Garcia rallied volunteer troops with threats of a near devastation of Colorado if the state can’t raise its revenue collection. She did so as the current executive director of the of Colorado Statewide Parent Coalition (CSPC), a roll she has held since 2018, prior to be appointed by a vacancy committee to her seat in 2023.

She’s done well in that position. According to the nonprofit’s tax form 990, CSPC’s revenues when Garcia took the helm in 2018 were about $517,000. In the years after she took over that number grew nearly five times to $2.7 million in 2023 (the last filing year available), with her salary nearly tripling from $57,000 to $133,000.

Colorado taxpayers, however, are to thank for the nonprofit’s success, as well as Garcia’s salary at CSPC.

According to the Transparency Online Project (TOPS), CSPC has raised nearly $2 million in Colorado tax-funded grants and other programs since Garcia became director, with more than 99 percent of those tax dollars rolling in since Garcia was appointed to the legislature.

Stepping up to the plate

A closer look at Protect Colorado’s Future Coalition campaign finance reports show Garcia’s non-profit has been very gracious to the Initiative 195 effort.

As of its most recent filing on Aug 3, Protect Colorado’s Future Coalition had raised $310,105 in contributions, and of that, Garcia’s nonprofit had contributed nearly one-third — $88,123.

The timing of those contributions, however, are even more interesting.

  • On June 30, CSPC donated $16,548.
  • On July 23, less than two weeks before the signature deadline, CSPC donated $50,000.
  • Also on July 23, PCFC paid Ground Organizing $64,060, for “consultant and professional services.”

 

Ground Organizing is registered with the state as a circulator for Initiative 195, as well as other petitions, with the organization’s website boasting it has successfully put 20 initiatives on the ballot through paid petition circulators.

CSPC is also registered as a circulator for Initiative 195.

To date the campaign has paid Ground Organizing just under $139,000.

Two other donors, Bell Policy Center ($100,000 on July 24th) and John Powers ($30,000 on July 21st), also donated to the issue committee ahead of the August 3 deadline.

Powers is an environmental activist who launched the Alliance for a Sustainable Colorado.

Complete Colorado has filed and open records request with the Secretary of State’s office for the volunteer and paid circulator reports, which were due by Friday, but had not received an answer as of press time.

The Secretary of State now has until Sept. 3 to verify the signatures. Colorado’s statewide general election is Nov. 3.

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