April 11, 2009 06:19 PM UTC

AG says Pinnacol funds "off limits"

• 3 Comments
• by: allyncooper

As the battle of the budget churns, on Friday Attorney General Suthers got into the fray. From the Denver Post online posted 4/11/09 at 12:30 am:

Attorney General John Suthers said Friday that a plan by Colorado lawmakers to tap a workers’ compensation fund for $500 million to balance the state budget is unconstitutional and impossible to defend in court.

“Pinnacol’s funds are not assets of the state and Pinnacol’s policyholders have vested rights in any surplus funds,” wrote Solicitor General Dan Domenico in a legal analysis that Suthers, a Republican, asked him to prepare. Seizing the money “would violate the Colorado Constitution.”

I got on the AG website looking for the legal analysis or opinion so issued, but there was nothing. I have maintained in previous posts over the past couple of days that this is probably legal unless it violates the Colorado Constitution. Suther’s says it does, so I would love to read that opinion.

That being said, although I was in favor of using these funds for higher ed, and even if its constitutional (Suther’s says its not), there is still the issue of retroactively voiding valid contracts (policies) between Pinnacol and policy holders.

I fully support every effort made to find the funds to support higher ed, especially funding that prevents the closure of community colleges which for so many are the only affordable access to furthering their education and provides a critical gateway to getting a 4 year degree. It’s tragic we’re in a situation where Colorado may become almost dead last in public funding for higher ed.

The Pinnacol plan is fraught with problems, however well intentioned. Even if passed and signed by the governor, lawsuits are guaranteed and there would be a credible chance the moving parties would prevail. We simply can’t fund higher ed on such a questionable basis.

Of course the gushing wound we have right now has been caused by the train wreck of a recession nobody thought would be this severe. The  desperate budget maneuvering we witness should pound home the fact its imperative we have fundamental change in our state budget process, and that includes TABOR.   Regardless of your political views or affiliation, we should all be asking ourselves, “Is this anyway to run a state?”