April 08, 2009 08:56 PM UTC

Shaffer: We Can Take The Money

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• by: Colorado Pols

Senate Majority Leader Brandon Shaffer writes in the Denver Post today on behalf of the emergency proposal to transfer “excess” reserves from the state’s workman’s comp insurance entity, “backfilling” otherwise devastating cuts to higher education:

This week, Colorado’s General Assembly is setting the state’s budget for next year. It is more than just a set of numbers; it’s a moral statement reflecting our values.

The current recession has torpedoed revenues, leaving Colorado with a $1.4 billion shortfall. In an effort to craft a fiscally responsible, balanced budget, we have been forced to make hundreds of millions of dollars in deep and painful budget cuts.

For example, we’ve cut the senior homestead tax exemption, cut funding for preschool through 12th-grade education and delayed Medicaid payments. We’ve closed a prison and postponed the opening of another, frozen employee salaries, and abolished performance pay incentives.

We’ve cut or frozen the budgets of state agencies and departments. We’ve put systems of transparency and accountability in place to ensure that programs operate as efficiently as possible. And we’ve drained our reserves. But, after all of this, we are still $300 million short.

The fact that we have budget issues isn’t a surprise. With the downturn in the economy, we knew we would have shortfalls, so we asked our staff to review each division of government to see if there were any “stones left unturned.” We found one: Pinnacol Assurance.

Pinnacol is a state entity that sells workers’ compensation insurance and currently holds nearly $700 million over and above the reserves it has set aside to pay both current and future claims.

No government agency wants to reduce its assets, spending, or authority. Pinnacol’s managers are no different, and they oppose this transfer. However, as state legislators, we have a responsibility to look beyond Pinnacol’s narrow interests and consider the general good of the entire state.

A poll follows.

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