Colorado Raises Taxes on Wealthy to Expand Universal Free School Meals Program

A child puts her mask back on after finishing lunch at a socially distanced table in the cafeteria of Medora Elementary School in Louisville, Ky., on March 17, 2021. (Jon Cherry/Getty Images)

On Nov. 8, Coloradans overwhelmingly voted “yes” on Proposition FF, which expands its universal free school meals program by limiting deductions on earners making over $300,000.

As a result, beginning with the 2023-2024 school year, Colorado will create the Healthy School Meals for All program, allowing all school children to receive a complimentary breakfast and lunch regardless of household income. Moreover, the passage of Proposition FF shows Colorado voters are increasingly embracing raising taxes to fund social programs.

In the past, Colorado voters have shown little desire to boost taxes. In 1992, they went so far as to establish the Taxpayers’ Bill of Rights, or TABOR, which limits the revenue governments can retain and spend, and requires voter approval for tax increases. Accordingly, since TABOR’s implementation, 25 statewide ballot measures impacting taxes have been put forward for voter approval. Only six have passed.

But in 2020, Colorado voters bucked past precedent and approved a paid family and medical leave proposal by popular vote. And on Nov. 8, 2022, Colorado voters said yes to Proposition FF.

Expanded School Meals

Before the passage of Proposition FF, Colorado already had a free school meals program. Specifically, all students from Colorado families whose incomes were less than 130 percent of federal poverty guidelines were eligible for free meals. Students from families earning less than 185 percent were eligible for reduced-price meals. However, for students eligible for reduced-price meals, the state covered the student’s portion of the cost, making the meal free to the student.

A cafeteria worker supervises lunches for schoolchildren at the Normandie Avenue Elementary School in South Central Los Angeles, Calif., on Dec. 2, 2010. (Mark Ralston/AFP/Getty Images)

Also, for two years during the COVID-19 pandemic, public school students across the country had access to free school meals when the federal government suspended its eligibility requirements. But that dissolved in August.

In response, the Colorado State Legislature referred Proposition FF to the ballot through House Bill 1414. And with 92 percent reporting as of Nov. 11, Coloradans voted 55.8 percent to 44.2 percent to pass Proposition FF.

Proposition FF

Beginning in 2023, Proposition FF limits state income tax deductions to $12,000 for single filers or $16,000 for joint filers and applies to standard or itemized deductions. That limit applies to any household making more than $300,000 per year. Notably, itemized deductions are often charitable contributions, mortgage interest, and state and local taxes.

Consequently, if a couple previously claimed $50,000 in itemized deductions, their state taxes will increase by $1,547 under the measure. As a result, Proposition FF will generate an additional $100.7 million in state income tax revenue in 2023, the first year the tax measure takes effect. Plus, because voters approved Proposition FF, the revenue raised won’t be subject to Colorado’s constitutional revenue limits. Proposition FF will also be used to increase wages for the employees serving school meals.

Before its passage, proponents of Proposition FF argued that “even if a student can afford to bring or pay for a meal, the measure will take a daily financial concern off of families’ plates,” Colorado’s ballot booklet stated.

Conversely, opponents of the proposition argued that the measure saps money from the economy and families investing their money as they see fit. They also said that “the state should not pay to feed kids who can afford to purchase a school meal or bring food from home.”

Christy Cusick hands out free school lunches to kids and their parents at Olympic Hills Elementary School in Seattle, Wash., on March 18, 2020. (Photo by Karen Ducey/Getty Images)

Still, proponents of Proposition FF argued that kids experiencing hunger have “lower grades than their peers and are more likely to struggle with behavioral problems and experience emotional, mental, and physical health issues.”

That argument seemed to resonate with Colorado voters, who voted to pass Proposition FF, adding it to the list of taxpayer-funded social programs.

In November 2020, Colorado voters approved a proposition, effective Jan. 1, 2023, requiring Colorado employers and employees to contribute 0.9 percent of the employee’s wage to a state-run insurance program. If an employee makes $104,000 annually, the employer and employee will pay $468 toward the insurance program for a combined total payment of $936 annually.

As a result, starting in 2024, if a Colorado employee has a medical event, they can take up to 12 weeks of paid family and medical leave and receive up to $1,100 per week in wages, depending on their salary. Anyone employed for 180 days and earning at least $2,500 qualifies so long as the organization employs at least 10 people.