Referendum C in Colorado.

In 1992. 53% of Colorado voters voted to place a TEL or Tax and Expenditure Limitation on state and local spending. Fashionably called TABOR,Colorado's Taxpayer Bill Of Rights was America's most stringent TEL. TABOR had three primary components:

1. All tax increases had to be approved by taxpayers.
2. Existing TELs could not be weakened without taxpayer approval.
3. Colorado's TEL limited growth in expenditures (spending) and revenues to the inflation rate plus population growth. It mandated that all revenue collected over the limit be refunded to taxpayers. TABOR established a low rate of budgetary growth and mandates immediate refunds of surplus revenues.

In other words if the legislature wanted to spend over a certain amount, they had to ask the public for permission first. Any surplus was refunded to taxpayers. Between 1997-2007, CO taxpayers received over $3.25 billion in tax rebates and a reduction in reduction in the state income tax rate from 5 percent to 4.63 percent.[9]. from the state. For a family of four, that is an extra $3,200 in their pocket. TABOR was passed through citizen initiative and there is some evidence that initiatives passed by interest groups and citizens are stronger forms of TELs. Sounds great, right.

Two years ago Colorado voters narrowly approved Referendum C which will allow the state to keep and spend $3 billion in surplus taxes instead of refunding it to taxpayers. For more on the tax increase see this Colorado organization; TAX INCREASE

Michael J. New describes Colorado's economy this way;

Colorado residents are enjoying some good times economically these days.
Unemployment is down, income growth is up, and tax receipts are soaring. In
fact, tax receipts grew by a whopping 13 percent in fiscal 2006. During the
1990s, Colorado taxpayers could look forward to tax relief during such times of
prosperity. This is because the Colorado’s Taxpayer’s Bill of Rights (TABOR)
required that all surpluses over its tight revenue limit be immediately rebated
to taxpayers. In fact data from the Office of State Planning and Budgeting indicate that the legislature appropriated over 800 million dollars above the TABOR limit in both 2006 and 2007. This means that the average Colorado taxpayer has missed out on 910 dollars in tax rebates during the past two fiscal years

Colorado's economy grew faster than the national average after TABOR. Regrettably, Amendment 23 put K–12 education spending on autopilot and walled it off from the rest of the budget, putting other vital programs at odds with education. Sounds an awful lot like the separation of Alabama's General Fund and Education Fund. Tax cuts = more money in your pocket, less government growth, and an increase in tax revenue. Where have we seen this before.Maybe here?