Colorado Insights 

Colorado Insights is the Colorado Prosperity Project Newsletter published at least monthly.  

Colorado Insights: January 14, 2010
Colorado Governor Ritter State of the State Address – Colorado Prosperity Project Update 

Colorado’s Governor, Bill Ritter, delivered his fourth and final State of the State Address before a joint session of the House and Senate on January 15th.  He called on lawmakers to set aside weaker impulses of partisanship and to remain focused on job creation, economic recovery and balancing the state budget.

The Governor indicated the state has made progress and has one of the best economic climates and outlooks in the country.  Colorado is making the New Energy Economy our calling card, growing other Industries of the Future, cutting taxes to small businesses, expanding access to healthcare and bringing new sustainable funding to transportation.  Efforts have helped stabilize the economy and while economic recovery is underway, a revenue recovery is still a year away.

The Governor outlined his top priorities for the legislative session, including:

• Keeping the state budget balanced while saving money and making government more effective, such as proposals to the Medicaid Efficiency Act. 
• Creating jobs and growing Colorado’s New Energy Economy through proposals such as an increase to the state’s renewable energy standard, boosting it from the current 20 percent by 2020 requirement to 30 percent by 2020, and increasing demand for Colorado’s cleaner-burning natural gas.
• Making the Colorado State Park system the first in the country to use zero net energy.
• Modernizing teacher and student assessments, including replacing the CSAP test with a new assessment tool by 2011 or 2012.
• Strengthening public safety through legislation to regulate and rein in abuses in Colorado’s voter-approved medical marijuana program, toughen penalties for drunk driving offenses, and improve the state’s child-protection system. 
• Shoring up the state’s Public Employee Retirement Association pension fund.

The Governor called on Coloradoans to unite against Proposition 101 and Amendments 60 and 61 that he felt would shut down colleges, and prisons, increase class sizes, put thousands of teachers out of work, and prevent the repair of unsafe roads and bridges. 

Click Here to link to the full text of Governor Ritter's State of the State Address 

Colorado Insights - Colorado's Unemployment Rate Falls to 7% in September, Below National Average
Denver Post, October 22, 2009

Colorado's unemployment rate fell to 7 percent in September, dipping for two months in a row for the first time since the U.S. recession started in December 2007.  Click here for full article. 

Colorado Insights - Long Term Budget Stabilization Commission Convenes
July 9, 2009 

The Long Term Budget Stabilization Commission, established by the Colorado General Assembly during the 2009 Legislative Session by SJR09-044, convened for the first set of meetings July 8-9, 2009 at the Colorado State Capitol.  The Commission is made up of 16 members – 6 legislative members and 10 members from the public. 
Charge of the Commission:

• “Study the fiscal stability of the state, including but not limited to solutions for higher education and transportation funding, affordably access to health care, kindergarten through twelfth grade education, state-owned assets, and the creation and adequate funding of a state rainy day fund;”
• “Develop a strategic plan for state fiscal stability that may be amended on a yearly basis to reflect then-existing economic realities; and consider other issues as needed.” 

Click here for the full text of SJR09-44 Establishing the Long Term Fiscal Stability Commission

Members of the Long-Term Fiscal Stability Commission:
Senator Rollie Heath, Chair 
Representative Mark Ferrandino, Vice Chair 
Senator Greg Brophy 
Senator John Morse 
Representative Lois Court 
Representative Don Marostica

Public Members: 
Carol Boigon
Sean Conway
Amy Oliver Cooke
Jonathan Coors
Renny Fagan
Timothy Hume
Kirvin Knox
Donna Lynn
Marty Neilson
Chris White

The Commission is limited to proposing five bills for the 2010 legislative session and the bills must be determined by November 6th, 2009. 

July 8th & 9th Meetings:

Over two days of intense meetings, the commission received a crash course in the state budget structure and status.  Legislative Council and Legislative Legal Services provided the commission with overviews of the state expenditures and revenues.  Overviews of the constitutional and statutory framework of the state budget focused on the big six state budget drivers – Education, Health Care Policy & Financing, Corrections, Human Services and Judicial Departments.  State Revenue overviews included presentations on TABOR and Referendum C.  

The commission received budget updates from State Treasurer, Cary Kennedy and Joint Budget Committee Chair, Senator Moe Keller.  Tom Clark, Executive Vice President of the Metro Denver Economic Development Corporation presented thoughts on economic development and Colorado business competitiveness. 

Among other presentations, the commission heard presentation by Richard Wobbekind, Unversity of Colorado at Boulder, Leeds School of Business, Charlie Brown, Center for Colorado’s Economic Future, Henry Sobanet, President Colorado Strategies, Carol Hedges, Colorado Fiscal Policy Institute, Wade Buchanan, Bell Policy Center and Barry Paulson, Independence Institute.

The commission heard a panel presentation from Colorado local government representatives Sam Mamet, Colorado Municipal League, Evan Goulding, Special District Association and Chip Taylor, Colorado Counties, Inc. 

Presentations and handouts from the commission meetings are available on the commissions’ website – Long Term Fiscal Stability Commission. 

Next Fiscal Stability Commission Meetings will take place July 28th and 29th, 9:00 a.m.  – 5:00 p.m. at the Colorado State Capitol, House Committee Room 0112.  

For more information regarding the Long Term Fiscal Stability Commission please visit click here.   

Related Articles:

Click here for information regarding other Legislative Interim Committees

Colorado Insights – Colorado Economy
February 4, 2009

Colorado’s labor market ended the year on a down note.  December’s seasonally adjusted unemployment rate increased three-tenths of one percentage point to 6.1 percent, according to Donald J. Mares, Executive Director of the Colorado Department of Labor and Employment. “Although we have weathered the myriad of economic woes afflicting the nation better than most states, mounting evidence suggests that Colorado entered a recession in the last quarter of 2008,” noted Mares.

Information below is from December 2008:

• Total employment has fallen 47,000 over the past twelve months.
• Thirty-seven percent of Colorado’s 64 counties posted higher unemployment rates in December.
• First-time claims for unemployment insurance indicate the dramatic erosion of labor market conditions.
• This is the first time since 1974 that the State failed to add jobs in December.
• Losses in construction and professional and business services offset gains in leisure and hospitality.  Continued weakness in housing contributed to the loss of 4,400 construction jobs.
• The ski industry prompted payrolls to rise by 10,200 positions, but holiday hiring was meager while transportation and utilities inched up by only 1,200 jobs. 
• Financial activities trended up 1,500 positions while payrolls in information and other services each rose by 400. 
• Education and health services, along with natural resources and mining both saw little employment change.
• Professional and business services declined by 7,300 positions.
• Government experienced an employment decline of about 1,400 positions with the losses concentrated in state and local education.
• Manufacturing lost 1,000 positions.
• Transportation and utilities, professional and business services, construction, manufacturing, financial activities and leisure and hospital industries employ fewer workers than this time last year.

The Bureau of Labor Statistics reported the nation’s unemployment rate increased from 6.8 to 7.2 percent in December.  Emergency Unemployment Compensation (EUC) Federal legislation provides up to 13 additional weeks of EUC benefits for states that reach a total unemployment rate greater than 6 percent.  A state’s total unemployment rate is based on a three-month average.  Colorado does not qualify for the additional weeks at this time.  The Unemployment Insurance (UI) Program will contact potentially eligible individuals when the three-month average exceeds 6 percent.

Colorado Joint Select Committee on Job Creation and Economic Growth
The bipartisan Joint Select Committee on Job Creation and Economic Growth was formed in late 2008 and consists of five Senators and five Representatives.  The committee was created by capitol leaders during the legislative offseason and is charged with coming up with ideas to boost Colorado’s ailing economy.

The committee gave its seal of approval to nine bills, most of which have already been introduced.  Those bills include measures to give tax credits to companies that create jobs in Colorado, help small businesses secure loans, train emergency medical technicians for rural areas and prepare new workers for the renewable-energy industry.  The transportation-funding bill (FASTER) also received a stamp of support, though Republican’s on the committee voted against the endorsement.  “This is not a vote on the merits of the bill,” said Shawn Mitchell (R).  This is a vote to move the bills forward for further consideration.

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Colorado Insights - Colorado Legislative Session Kicks Off  
January 9, 2009 

The First Regular Session of the Sixty-Seventh Colorado General Assembly started January 7th with the major issue being a significant budget shortfall of $604 million, which may result in severe cuts in state spending.  Legislators are hoping to pass plans to fix state roads, boost health care coverage for the uninsured and address other issues facing the state.  The Legislature will concentrate on the budget, transportation, health care, energy and education.

• The session runs for 120 days, starting January 7 and ending May 6, 2009.

• There are 35 members of the Senate and 65 members of the House of Representatives

• The Senate consists of 14 Republicans and 21 Democrats

• The House of Representatives consists of 28 Republicans and 37 Democrats

• The Senate and House Leadership were elected by members of their respective parties and are as follows:

House Majority Leadership
Speaker                           Terrance Carroll
Majority Leader                 Paul Weissmann
Assistant Majority Leader   Andy Kerr
Caucus Chair                    Karen Middleton
Assistant Caucus Chair      Sal Pace
Majority Whip                   Clare Levy
Deputy Whip                     Randy Fischer

House Minority Leadership
Minority Leader                 Mike May
Assistant Minority Leader   David Balmer
Caucus Chair                   Amy Stephens
Whip                               Cory Gardner

Senate Majority Leadership
President                         Peter Groff
President Pro Tem            Betty Boyd
Majority Leader                Brandon Shaffer
Assistant Majority Leader  Lois Tochtrop
Caucus Chair                   Suzanne Williams

Senate Minority Leadership
Minority Leader                Josh Penry
Assistant Minority Leader  Greg Brophy
Minority Whip                  Nancy Spence
Caucus Chair                  Mike Kopp

Colorado Governor Bill Ritter, Jr. Delivers State of the State Address

Colorado Governor Bill Ritter delivered his third State of the State address Thursday, January 8th.  Governor Ritter addressed the challenges facing the state of Colorado and outlined his priorities for the upcoming year.  He called for a bipartisanship effort for a collective focus on protesting businesses, creating jobs, and managing the budget.

The Governor plans to outline his plans to balance the state budget to the Joint Budget Committee (JBC) including his recommended budget cuts of nearly $800 million on January 15th. The budget cuts will be through a combination of program changes, cash-fund transfers and tapping into state reserves.

Governor Ritter outlined two economic development bills to protect businesses, create jobs and strengthen the economy. 

• House Bill 1001, which will establish a tax credit incentive for companies that create more than 20 new jobs. 'Colorado has never been able to compete against other states in terms of incentives,' Gov. Ritter said.  “This job-creation tax credit won't just be a new tool in the toolbox -- it will be a whole new toolbox.'

• Legislation to revive the Colorado Credit Reserve Program, which will help thousands of businesses obtain access to credit and capital during the downturn.

The Governor’s transportation plan proposes a three stage omnibus transportation bill called FASTER (Funding Advancements for Surface Transportation and Economic Recovery).  The bill would look at fees and bonding to fix old bridges and roadways, public-private financing partnerships and creating a long-term sustainable funding formula.

• Stage 1: Putting immediate safety and maintenance needs first by looking at fees and bonding to fix old bridges and old roadways.

• Stage 2: Exploring creative finance options such as public-private partnerships.

• Stage 3: Creating a long-term sustainable funding formula, because 'we can't build a modern, safe and efficient 21st century transportation system with a 20th century funding model,' Gov. Ritter said.

Governor Ritter’s education plan includes statewide concurrent enrollment plan for high school students that would allow students to take college classes while still in high school.

In regard to health care, Governor Ritter proposes a plan that would charge hospitals fees to generate revenue to use in drawing down hundreds of millions of dollars in federal matching funds.  The combined funds would allow the state to provide health care coverage to more than 100,000 uninsured Coloradans. 

The Governor said the achievements of the past have put Colorado on a more solid financial footing than many other states and sound decisions during this legislative session and having a stronger federal partner will better position Colorado for a quicker economic rebound.

Click here for the full text of Governor Ritter's State of the State Address and other related materials

Articles of Interest:  

Governor proposes cutting $632 million from budget - The Denver Post 1/17/09