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Colorado Dems offer alternative budget cuts
Associated Press
Issue date: 4/16/09 Section: News
DENVER - Democratic legislators are offering an alternate package of budget cuts to avoid eliminating $300 million in funding to Colorado colleges and universities, according to plans obtained Wednesday by The Associated Press.
On Wednesday, the House Appropriations Committee delayed action on Senate Bill 273, which would have ordered Pinnacol Assurance to turn over $500 million from its approximately $700 million surplus. That bill is now expected to die.
Gov. Bill Ritter said the plan to take money from the state-created workers compensation insurance company's surplus is off the table, and instead he and lawmakers will focus on other steps to avoid devastating cuts to higher education.
"Members of my staff and I have tried in good faith to reach an agreement with Pinnacol. However, there remain too many unresolved issues and questions for Colorado citizens and Pinnacol shareholders and customers," Ritter said.
The new package of cuts calls for raising up to $354 million by postponing a major water project, increasing tobacco taxes and cutting $187 million from the budget, including reductions in medical provider rates and requiring state employees to take 10 unpaid furlough days.
In a statement, Pinnacol's president and CEO Ken Ross praised the decision to take the bill out of play and to look for alterative solutions to the budget deficit.
"We are glad that lawmakers are starting to realize the complex nature of this issue, and are taking more time to make thoughtful decisions that affect the business climate in Colorado," Ross said. "It has been our position since lawmakers raised this issue that Pinnacol assets are private, not public, funds held in trust to protect our policyholders and their employees."
The new proposals also drew praise from business leaders, who strongly opposed the Pinnacol money transfer.
"We applaud the governor and legislative leadership for this responsible step toward balancing the budget," said Travis Berry, spokesman for the Colorado Competitive Council.
On Wednesday, the House Appropriations Committee delayed action on Senate Bill 273, which would have ordered Pinnacol Assurance to turn over $500 million from its approximately $700 million surplus. That bill is now expected to die.
Gov. Bill Ritter said the plan to take money from the state-created workers compensation insurance company's surplus is off the table, and instead he and lawmakers will focus on other steps to avoid devastating cuts to higher education.
"Members of my staff and I have tried in good faith to reach an agreement with Pinnacol. However, there remain too many unresolved issues and questions for Colorado citizens and Pinnacol shareholders and customers," Ritter said.
The new package of cuts calls for raising up to $354 million by postponing a major water project, increasing tobacco taxes and cutting $187 million from the budget, including reductions in medical provider rates and requiring state employees to take 10 unpaid furlough days.
In a statement, Pinnacol's president and CEO Ken Ross praised the decision to take the bill out of play and to look for alterative solutions to the budget deficit.
"We are glad that lawmakers are starting to realize the complex nature of this issue, and are taking more time to make thoughtful decisions that affect the business climate in Colorado," Ross said. "It has been our position since lawmakers raised this issue that Pinnacol assets are private, not public, funds held in trust to protect our policyholders and their employees."
The new proposals also drew praise from business leaders, who strongly opposed the Pinnacol money transfer.
"We applaud the governor and legislative leadership for this responsible step toward balancing the budget," said Travis Berry, spokesman for the Colorado Competitive Council.
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