Supporting History

Amendment 4: Preserving the Past and Investing in our Future

As we enter an election month, it is a good time to look back at the decision made thirteen years ago by Colorado voters to pass Amendment 4, which legalized limited-stakes gaming and has provided more than 2,500 grants totaling more than $140 million to preserve Colorado’s unique and irreplaceable heritage.

In the 1980s the three historic mining towns of Central City, Black Hawk and Cripple Creek were facing an economic crisis.  Hard-rock mining no longer supported the economies of the towns, tourists were visiting other attractions around the state, and the buildings that gave the communities their historic character were deteriorating.  Additionally, neglect, lack of funds for restoration and Colorado’s harsh climate were threatening historic sites and structures across the state—from courthouses to schools, from archaeological sites to historic ranches.

Like most states, Colorado did not have enough public funds to take on long-term restoration and preservation of the three towns, let alone the thousands of historic sites throughout the state.  So Coloradans looked to South Dakota, which had passed a state constitutional amendment legalizing gambling in the historic town of Deadwood, with the stipulation that revenues from gaming activities be used to revitalize this economically stagnant community and provide for the long-term restoration and protection of its historic resources.

Citizens of Central City decided to pursue a similar amendment in Colorado.  “We tried many ways of raising funds to do preservation work.  There was just no money available, and the only thing we could think of was gambling,” said Alan Granuth, a member of the Gilpin County Historical Society and former historic preservation administrator for Central City.  Granuth and others in Central City began writing Amendment 4, which eventually included language that legalized gambling in Black Hawk and Cripple Creek as well.  After the necessary signatures were gathered, Amendment 4 was placed on the ballot and was passed by voters on November 6, 1990.

The amendment mandates a $5 bet limit and allows only slot machines, poker, and blackjack.  The Amendment also restricts gaming activities to one-third of a building’s interior.  Additionally, the amendment stipulates that 28 percent of the tax revenues from gaming go to a historic preservation fund, with 20 percent of that portion used for preservation efforts in the three gaming towns and the remainder (80 percent) to be used for a statewide grant program.

The Colorado state legislature subsequently passed the Colorado Limited Gaming Act of 1991 which established the rules for administering the State Historical Fund’s disbursement of historic preservation grants.  The statute specifies the eligible project types and applicants, and the standards to which funded projects must comply (The Secretary of the Interior’s Standards for the Treatment of Historic Properties).

This statute was further amended twelve years later during the 2003 legislative session.  Due to the drastic budget cuts that our state faced during the past year, the legislature asked the Colorado Historical Society (CHS), which oversees the State Historical Fund (SHF), to determine if SHF funds could be used to replace the almost $3.5 million state appropriation used for CHS operations.

The Colorado Historical Society, founded in 1879, was formally recognized by the state in 1915 and had continuously received appropriations from the general assembly since that time.  Given its “unique role as the state educational institution charged with collecting, preserving, and interpreting the history of Colorado and the West,” the legislature determined “that it is appropriate to provide funding for the state historical society through the state historical fund.”  To protect the grant program that provides funding to communities throughout the state, the revised statute mandates that, “the majority of … the eighty percent of the portion of the state historical fund administered by the society shall continue to be used for [the grant program].” (CRS 12-47.1-1201 and 1202)

After cooperating with the writing of the statute revision, the Colorado Historical Society faced the potential for further cuts to the grant program when additional proposals were presented to divert as much as half of the SHF monies to use for tourism promotion.  None of these proposals were enacted.  Currently, the Society is unsure what additional proposals may arise during the 2004 legislative session that begins in January.

Since the inception of the State Historical Fund, every county in the state has received funding, and many of the previously threatened courthouses, schools, archaeological sites, and historic ranches have been saved for the benefit of future generations.  These funds have gone beyond preserving our heritage—they have provided economic revitalization, jobs, and affordable housing; increased tourism and property values; and leveraged billions of dollars in other funding throughout the state.  Amendment 4 has created a better place for Colorado’s citizens to live, and more attractive destinations for visitors to our state.  Because only a small portion of the thousands of designated sites have received funding to date, and because new historic resources are being identified every day, the vision of Coloradans in 1990 to preserve our unique heritage has only just begun.

BY ALYSON MCGEE, SHF Public Outreach Coordinator