April 10, 2009 03:19 AM UTC

Higher Ed May Get Funded Though Pinnacol

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• by: allyncooper

( – promoted by Colorado Pols)

SB 09-273 Introduced in the Senate Monday and was voted out of Appropriations on Tuesday referred to the Senate Committee of the Whole. In summary, the bill changes the law to allow $ 500 million to be transferred to the General Fund to be used for higher ed.

SB 09-281 Introduced in the Senate Monday, voted out of Appropriations on Tuesday, referred to the Senate Committee of the Whole, and passed second reading today, as amended. In summary, the bill clarifies that Pinnacol is a legal subdivision of the State, mandates premium rebates to small policyholders, and establishes an interim committee to study the entire operation of the agency, including executive compensation, and the feasibility of selling to a third party.

Business groups are in opposition, former Gov. Owens had an op ed today in the Post vehemently opposing any transfer of money. Looks like the cash cow may get hit up a bit.

Even with $500 million transferred out of Pinnacol, there is still prudent reserves for present and future claims. Some of the top execs have raked in well over $600,000 in compensation per year, while there have been nightmare stories of denied or reduced claims to injured workers.

The taxpayers bailed out insurer AIG for $168 billion (and counting). I don’t have any problem hitting up a quasi-state insurance company to help bail out higher ed. Without this funding, Colorado will drop to virtually last in state funding for higher ed. The ramifications of that will last far beyond our current budget crisis caused by the recession.  

The transfer of $500 million aside, this is an agency that needed scrutiny long ago. In my view, SB 09-281 hopefully will do just that.