Dan Pilcher

CACI Senior Vice President

& Chief Operating Officer

E-Mail: dpilcher@COchamber.com

www.COchamber.com

Thursday, November 3, 2011

Governor’s 2012-2013 Proposed Budget Emphasizes Economic Development but Contains Smaller Education Cuts

Yesterday, Governor John Hickenlooper unveiled a proposed $18.7 billion budget for the State of Colorado that includes a new emphasis on economic development.

The Governor presented his budget blueprint to the legislature’s Joint Budget Committee, which will do the heavy lifting in the 2012 legislative session to write the budget.

In his letter to the Joint Budget Committee, the Governor said:

The proposed budget seeks to add to the state’s available tools with three initiatives: allocating $6 million to the Economic Development Council; allocating $3.1 million to fund the Governor’s Energy Office with Limited Gaming funds; and allocating $3 million from Limited Gaming funds to start an innovative loan program to promote film production and location within Colorado.

The state’s K-12 and higher education budget would be cut $173.9 million, although the cuts would be less than in the prior two fiscal years.  K-12 education would be cut 2.2 percent, or $97.1 million.  The K-12 education budget was cut $227.5 million for the current 2010-2011 fiscal year, which ends June 30^th, and $260 million in the previous fiscal year.  Higher education would be cut $76.8 million, which is a 2.7 percent reduction, for the upcoming 2012-2013 fiscal year.

For more on the Governor’s proposed budget, read:

“Colorado Gov. Hickenlooper wants seniors to forgo tax break again,” by Tim Hoover, The Denver Post, November 2^nd.

Governor’s Energy Office Chief Addresses CACI Energy and Environment Council

CACI’s Energy & Environment Council met yesterday to hear remarks from guest speaker TJ Deora, Director of the Governor’s Energy Office.  Mr. Deora outlined his Department’s stated goals for 2011-2012 and their intended steps for achieving those.

On the legislative front, Deora noted that GEO’s only legislative priority is to restore the Office’s funding.  His goal for the 2012 session is for GEO to be a resource on policy rather than an advocate or opponent of specific bills.

Deora listened to such concerns from CACI members as:

• Questions about how much consideration GEO gives to the impact of increased energy rates on consumers when developing policies; and

• The potential to put existing businesses that provide foundational jobs and have already invested in Colorado at a competitive disadvantage by prioritizing new companies or products.

CACI members also reiterated that it is essential for industry to know the rules of the regulatory game in order to continue growing and that uncertainty about regulations and taxes is the enemy of investment.

Council’s members attending the meeting included representatives from their following:

•  Davis Graham & Stubbs LLP

• Sustainable Oil Service

• Xcel Energy

• Faegre & Benson

• DCP Midstream

•  Encana

•  Colorado Rural Electric Association

• Colorado Mining Association

•  Colorado Springs Utilities

• United Power, Inc.

• Colorado Stone, Sand and Gravel Association

•  Colorado Ready Mixed Concrete Association

•  Ensign Energy Service

• Intermountain Rural Electric Association

• Black Hills Corporation

• First Century Development

• Suncor Energy

• Freeport-McMoran

• PriceWaterhouseCoopers

• Snell & Wilmer

• Colorado Legislative Services

• Waste Management

CACI Sponsors Legislative Tour of Black Hills’ Pueblo Airport Generation Station Tour

Last Friday, CACI Silver Partner Black Hills Corporation hosted a tour of its new Pueblo Airport Generation Station.  Senator Kevin Grantham (R-Canon City), Senator Angela Giron (D-Pueblo) and Representative Keith Swerdfeger (R-Pueblo) joined CACI staff for a tour of the generation facility.

The Pueblo Airport Generation Station, known as “PAGS,” is expected to be in service by January 1, 2012.  It will consist of four units: two utility-owned natural gas-fired LMS100 units and two Black Hills Colorado IPP-owned high-efficiency, combined-cycle units.

At the peak of construction, more than 400 workers were on-site.  Fifteen to 20 highly technical, permanent workers will operate the new facilities after construction is completed.

The new generation facility consists of advanced-technology, highly efficient machines that also have load-following capabilities needed to allow for more renewable energy.  The local generation projects will provide customers with long-term, least-cost energy security and greater rate-stability while contributing to Pueblo’s economic development effort. 

Receiving CACI E-Mails: Members Report Problems

Beginning last June, CACI begin using Constant Contact E-mail software in order to better serve its members through its electronic communications, including the CACI Capitol Report, Council meeting notices and agendas, Legislative Alerts, events invitations, Legislative Alerts and other communications.

Because the CACI e-mails are now generated through the Constant Contact system, the personal e-mail security program of CACI members may block them as spam.  CACI members should mark the CACI e-mail address as a "safe sender" in their e-mail security program.  In the case that members have stopped receiving CACI e-mails, they should contact their IT provider for assistance.  CACI e-mails are coming from the same CACI email address as always: @COchamber.com

CACI E-mails sent through Constant Contact will come addressed as coming from:

Colorado Association of Commerce & Industry

 mlucero@cCOchamber.com