Proposition 118 on this November’s ballot is a flawed program that hurts employees by reducing your paycheck. We all support the flexibility that family medical leave provides, but Proposition 118 requiring paid family medical leave proposes a program none of us can afford and is destined to go bankrupt despite big fees (taxes) on both employees and employers.
The cost is mandatory. For employees that means you will lose .5-.6% of your paycheck every year. For employers, the very large cumulative cost will force many employers to reduce other employee benefits to pay for this new compulsory expense.
Financial
- A $1.3 Billion tax increase. 50% of the $1.3B comes directly from employees paycheck.
- The program is mandatory. So is the cost. Employees will lose .5% of every paycheck.
- Proposition 118 effectively adds 9-13% to state income taxes each employee pays.
- It is a lavish new program we can’t afford.
- It is destined for bankruptcy on day one due to faulty utilization assumptions.
- If only 6.2% of Coloradans use this program for an average length of leave of 9.5 weeks, the program is insolvent by the 2nd (Common Sense Institute Study)
- The complex structure has NO mechanism to lower the guaranteed benefits.
- Insolvency will force the Legislature to increase the already high tax on employees and employers, and/or take funds from already strapped education and transportation programs.
- This proposal is not sustainable although most of us support the family medical leave concept.
- Despite big taxes on employees and employers, none of us can afford this program.
Provisions
- Proposition 118 provides 12-16 weeks per year (3-4 months each year!) of leave for medical reasons for your family or anyone else with whom an employee has a “significant personal bond.” This leaves it open to massive abuse, yet proponents assume low levels of usage.
- The new bureaucracy, and its hundreds of faceless bureaucrats, would be run by a single political appointee with unprecedented authority to increase tax rates to cover excess costs which under the program can’t be reduced.
- Government employers are exempt from the program. Employees still must pay in. Proponents know cities and towns can’t afford it.
- It creates a double standard. East Coast proponents who are funding this measure think it’s good to mandate that Colorado businesses provide this, but not good to hold government entities to the same standard.
- Proposition 118 has the most extreme provisions in the U.S.
- The program is not subject to spending limits that apply to state and local governments.
- Employees won’t talk with their employer when they need family medical leave; employees will notify the state and the bureaucracy will decide if the employee gets the leave and when the monies will be paid out…that’s if there’s money available.
- Bills on this topic have failed repeatedly in the Legislature.
Proponents/opponents
- Out-of-state interests are trying to foist this on Colorado. 98% of the funds promoting Proposition 118 come from East Coast dark money.
- Bipartisan Colorado leaders and organizations are opposing this harmful measure, including the Colorado Women’s Chamber of Commerce, Club 20, and Durango Herald.
- Governor Jared Polis says he will not support this measure.
Support the concept of family medical leave, not this wasteful program
Most employers and employees support the concept of family medical leave, but this proposal is not sustainable. This proposal is overly generous, financially flawed, bureaucratic, subject to waste and abuse, and a huge increase in taxes for both employees and employers. Proposition 118 is not the solution! Vote No on 118.
Resources
Vote NO on 118 campaign
Common Sense Institute on 118 3rd party analysis
The one-size-fits-all Prop # 118 is NOT the answer!
This proposal is overly generous, financially flawed, bureaucratic, subject to waste and abuse, and a huge increase in taxes for both employees and employers. This isn’t the solution.
