Five-letter word will dominate General Assembly

T-A-B-O-R.

The five letters haunt Colorado’s 35 State Senators and 65 State Representatives.

Regardless of which party holds the majority, both Republicans and Democrats say they want to focus on the Taxpayers’ Bill of Rights early in the session to help with the state’s fiscal crisis.

The measure to cap taxing and spending was adopted into the state constitution by popular vote in 1992. It limits growth in state revenue and spending based on a formula that combines what was spent the previous year, plus population growth and inflation. It also requires a statewide election to increase taxes.

In a robust economy TABOR allows for refunds to taxpayers, because tax collections exceed the spending cap. But in a declining economy revenue falls, forcing a decline in spending for programs when the money is needed the most.

Now, after a four-year period marked by recession and job losses, the state is facing a $90 million deficit for the current budget and a $250 million deficit for 2005-2006.

Political watchers and lobbyists agree the legislature will be taking a long hard look at TABOR’s role in the state’s fiscal crisis.

“There appears to be an increasing willingness to do something about TABOR after last year’s failure,´ said John Straayer, political science professor at Colorado State University. “I think there is sufficient awareness and concern surrounding this thing that they are going to get something done this time.”

Still, if the parties are able to work out a compromise, decisions made will not have an impact until the 2007-2008 budget.

Straayer admits the legislature may look at other issues affecting businesses in Colorado, but said he feels they need to overcome TABOR before they attempt to change anything else.

“Highway funds, health care and the business personal property tax all pale in comparison to the big TABOR problem,” he said.

NCLA steers ship    The Northern Colorado Legislative Alliance, the lobbying effort of the Fort Collins, Greeley and Loveland chambers of commerce, is focusing on the budget difficulties and TABOR, higher education funding and transportation funding this session.

Sandra Hagen Solin, president of Capital Solutions in Denver and lobbyist for the NCLA said the organization wants to ensure the budget isn’t shored up on the backs of businesses.

“The legislature has grabbed money from all the cash funds to fill holes, and businesses pay fees to develop a worker’s comp fund,” Hagen Solin said. “We were about one-year from reaching the end point of the fund when they took money away to put it in the general fund. Now businesses are forced to continue paying the surcharge.”

Solin said the NCLA would also protect any effort to adjust workers compensation, tort reform, unemployment and environmental law.

“We feel we have made good strides in these areas and we are constantly on our toes and aware of what may be introduced,” Hagen Solin said. “Right now we don’t know if any of these will be attacked.”

The NCLA is also spending the session focusing on:

Funding for higher education: The lobbying organization represents businesses in Greeley and Fort Collins, which rely on Colorado State University and The University of Northern Colorado for employment base and customers. The organization feels these institutions need the additional funding to keep them as public universities.

CSU President Larry Penley also has made economic development one of the university’s key missions, and the lobbying group wants to make certain his efforts are supported.

Meeting transportation needs: Overloaded roads and traffic congestion are becoming a larger issue in Northern Colorado as commuters clog a busting infrastructure. Hagen Solin said she wants to make sure Northern Colorado is seen as a thriving area in need of transportation money from the state, with an emphasis on Interstate 25 improvements.

Small biz wish list    The National Federation of Independent Businesses, a small-business lobbying group will be focusing on:

Revoking the business personal property tax. The organization says it feels the tax is onerous, regressive, and expensive and it provides a huge disincentive from government to business owners who would otherwise buy new plant-operational tools and equipment.

The NFIB Web site says it would encourage the state legislature to increase the level of reimbursement currently provided in lieu of an outright business personal property tax elimination. NFIB also supports raising the floor over which the tax is assessed, thereby providing financial relief to Colorado’s smallest businesses.

Cutting the cost and raising accessibility of health care for Colorado businesses. The group said it would work to ensure the costs of health insurance for businesses do not increase.

“General Assembly leadership has offered hope to the business community that they understand the need to keep the recovery going in Colorado and stimulate growth in the economy,´ said Vickie Agler, NFIB/Colorado state director. “It’s our job to hold their feet to the fire.”

Protecting the current workers compensation program. The organization is fighting to beat back a movement among some to pass legislation that would roll back the workers’ compensation reforms first passed by the General Assembly in 1991.

“There are not many current members of the General Assembly who remember the hard fought victory from 1991,” Agler said. “So we must work to make sure everyone is educated on the issues and the importance of maintaining the workers’ compensation reforms currently in place.”

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