House GOP and Dems Team Up to Stop Investment Gamble on Retirement Accounts

The state House of Representatives today stopped a Senate Joint Resolution that House Republicans said encouraged risky investments for Coloradans’ individual retirement accounts.

At issue was Senate Joint Resolution 15, by Rep. Joe Rice, D-Littleton, which would have granted the state House of Representatives’ encouragement and stamp of approval for Colorado businesses to add a renewable energy fund to every 401(k) and other defined contribution plans in the state. The resolution was defeated when Representatives on both sides of the aisle saw how risky this investment strategy is.

“The House is not going to encourage people to gamble with their retirement funds,” said House Republican Leader Mike May. “I don’t believe that the state House should set the precedent of trying to pick winners and losers in the stock market. Especially not for Rice’s special interest cronies.”

As an example, May, R-Parker, pointed to a much-hyped foreign corporation that could be included in such an investment that has seen their stock drop nearly 70 percent in the last 20 months.

“We all support and encourage renewable energy,” May said. “But that doesn’t mean that Coloradans should be led to believe that the state House says they are a sound investment for your retirement.”

After a spirited debate, the House defeated the SJR 15 on a vote of 42-21.

Bulk of “Dirty Dozen” Package of Tax Increases Sent to Senate

Democrats Rush Forward with “Tax Increases in Effort to Play “Economic Chicken”

Despite continued opposition from citizens, businesses, and consumers, majority Democrats today granted final approval in the House for a package of tax increases that make up the bulk of the ‘dirty dozen.’

“The Democrats’ rush to tax the citizens and businesses who make up the backbone of Colorado’s economy, came full-circle this morning,” May said. “After hours of testimony from business owners and citizens who oppose these tax increases, Democrats still chose to ignore that message and take them one step closer to reality.”

The package of 8 proposals, granted final approval by the House today, would remove tax exemptions that small businesses rely on. Democrats are fast-tracking the package of legislation in order to pay for their over-spending in the previous year.

“Now is not the time to be passing along the cost of government bureaucracy onto citizens and businesses,” May said. “There is no question that a good many Coloradans are going to lose their jobs if this legislation is not stopped.”

May says that the overwhelming display of opposition by concerned citizens and business owners should be enough of an argument to stop these bills. Last week, the House Finance Committee debated the proposals, with one hearing lasting until 2:45 a.m. The committee room was overflowing with Coloradans from across the state who came to testify against the package of tax increases.

“One Democrat went so far as to argue that we should “call businesses bluff” when it comes to the amount of jobs that will be lost as a result of these tax increases,” May said. “When these businesses come to the capitol and tell us that they will have to cut jobs, they mean it. Calling their bluff is simply not good public policy and playing economic chicken with business owners will cost Colorado jobs.”

Among the tax exemptions being proposed for removal are candy, soda, online sales, and energy use.

The proposals, House Bill 1189, House Bill 1191, House Bill 1192, House Bill 1193, House Bill 1194, House Bill 1195, House Bill 1196, and House Bill 1199 were passed by the House on final approval with bipartisan opposition and will now move to the state Senate for further debate.

House Assistant Republican Leader David Balmer joins with Senate Assistant Republican Leader Greg Brophy to deliver the Republican State of the State.

State Rep. Cory Gardner, R-Yuma, today reacted swiftly to a news report showing two Colorado towns in energy producing regions as having the highest percentages of job losses in the country for the 3rd quarter of 2009.

The report, on MSN.com, states that Greeley, Colorado has the 9th highest job-loss rate and Grand Junction the highest rate out of the largest 281 metro cities across America. Greeley had a 2.4 % drop and Grand Junction had a 5.2 % drop in the employment rate over the third quarter of 2009.

“Governor Ritter and Majority Democrats continue to paint a rosy picture of Colorado’s unemployment rate,” Gardner said. “However, Grand Junction and Greeley have experienced some of the worst job-loss rates in the nation.”

Gardner pointed to the governor’s often-criticized oil and gas rules as being a contributor to the rise in the unemployment rate. Citing the new rules, Gardner says that many companies are choosing not to expand operations or to do business in certain areas of Colorado.

“The truth is that many companies are holding back on hiring and expansion and looking instead at more predictable and friendly regulatory environments,” Gardner said. “Democrats who deny that these rules are having an effect just need to look at the numbers in these counties.” Gardner noted that the indirect jobs associated with energy development have suffered as well.

Gardner and other Republicans warned Democrat leaders about the consequences of the rules during lengthy debate in the state House of Representatives. At the time, Gardner and industry leaders warned that overly restrictive environmental regulations and a lengthy and unpredictable permitting process would stifle industry growth. Despite those warnings, the governor moved forward and approved the rules.

“While many cities and towns across America struggle to lessen the effects of the recession, some on Colorado’s Eastern Plains and Western Slope have not been so lucky,” Gardner said. “It is shameful that these rules stay in place as Coloradans continue to lose good jobs.”

Fischer’s House Bill 1230, from 2008, would have required strict emissions requirements to be placed on all diesel powered equipment. Dubbed the “Tractor Tax,” it would have required farmers to retrofit equipment with costly upgrades.

New Propaganda Puts Spotlight on Union Demands for Higher Pay and Benefits

State Rep. Frank McNulty, R-Highlands Ranch, today issued a sharp rebuke to a new missive issued by Colorado WINS, the union that bargains for Colorado state employees.

“We are in the midst of a recession and facing a massive state budget shortfall and the union is blind to it as they continue to push their Chicago-style politics,” McNulty said. “As a former civil servant myself, I know that our state employees take pride in what they do for our state, and while union bosses are busy whining and issuing politicized reports, Colorado’s state employees are going above and beyond to serve their fellow Coloradans, and I thank them for that. The real issue here is that Gov. Ritter set the stage for increased labor tensions when he granted union bosses access to state government.”

McNulty is referring to an executive order signed by Gov. Bill Ritter that granted unions access to state government employees. Touted by Ritter as an efficiency measure, Republicans at the time warned that the move would eventually result in increased costs to Colorado taxpayers.

“Colorado taxpayers are already paying the bill for increased bureaucracy in the form of higher fees and taxes and car registration fees,” McNulty said. “Now we can thank our governor for an impending union-taxpayer showdown that threatens to hurt state employees and put state services at risk.”

According to a report in the Denver Business Journal, last June, Colorado state employee union officials went before the Joint Budget Committee asking the committee members to boost wages and benefits for state employees by eliminating important economic development measures the state offers.

“It has been my experience that Colorado state employees will do whatever it takes to get the job done,” McNulty said. “Unfortunately, union bosses have placed them in a bad situation.”

House Republican Leader Mike May, R-Parker, today issued the following statement in response to Governor Bill Ritter’s announcement of his “jobs plan”:

“As we continue to grapple with the continued effects of a struggling economy, a focus on jobs is absolutely essential.

“I would suggest that if Gov. Ritter wants to get Coloradans back to work, he repeal his onerous tax and fee increases, scale back his damaging oil and gas rules, and rethink the way government does business.

“Unfortunately, the governor seems to be more focused on job training programs than proposals to get Coloradans back to work.

“It is time to take a new approach to solve our long-term problems.”

House Republican Leader Mike May, R-Parker, today issued the following statement in response to Governor Bill Ritter’s latest budget balancing plan:

“As we continue to grapple with measures to balance the budget, I believe that we should use this situation as an opportunity to examine meaningful government reform as opposed to using one time gimmicks and budget balancing tricks.

“I was disappointed to see that many of the governor’s proposals merely delay the inevitable.

“It is time to take a new approach to solving our long term problems.

“We invite the governor to work with us in a true bipartisan fashion to reform government.”

State Rep. Kent Lambert, R-Colorado Springs, today decried the Governor’s Energy Office for advertising three new job postings on their Web site while state employees face another unpaid day off.
“I find it difficult to understand why the governor would be advertising for new government jobs while state government is facing across the board budget cuts,” Lambert said. “Now is not the time to be expanding government.”

The job advertisements in question are for positions within the Governor’s Energy office. After reviewing the job postings, Lambert questioned why state government would be furloughing existing employees and hiring new state employees simultaneously.

“I have to question the logic behind adding five more highly paid government bureaucrats with lavish benefit packages while we are furloughing state employees,” Lambert said. “It seems that the so-called hiring freeze is now officially dead.”

Lambert also points to other recent media reports citing wasteful spending at the Department of Education and a scathing audit of the CollegeInvest program as evidence that state government needs to rein in spending and control costs.

“It is shameful that the governor is still expanding pet government projects while he unilaterally cuts several days of pay from existing state employees, proposes more cuts to the homestead property tax exemption for senior citizens, and cuts fire and police protection in casino communities,” Lambert said. “It is time we reexamine government priorities and set things straight.”

The job announcements can be found online at Colorado Governor's Energy Office Web site.