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Dan Pilcher
CACI Senior Vice
President
& Chief Operating Officer
Phone: 303.866.9600
E-Mail:
dpilcher@cochamber.com
Friday, November 13, 2009
House Finance Committee Chair Targets Business Tax Exemptions
Yesterday, the legislature’s two fiscal committees held a joint
hearing on business tax exemptions that left statehouse
observers puzzled--but perhaps not surprised--for several
reasons.
First, Representative Joel Judd (D-Denver), who chairs the House
Finance Committee, has made it clear in recent weeks that these
exemptions are clearly in his gun-sight for elimination. In
postings on The Huffington Post, Representative Judd
says: “We cannot give away tax dollars for tax credits for large
corporations without proof that they work.”
To prove that tax incentives don’t work, Representative Judd
called upon Professor Jeffrey Zax, a CU-Boulder economist,
who—according to The Denver Post—asserted, “Government
subsidies to business don’t encourage employment, and they don’t
encourage economic growth.” For more on Professor Zax, click
on:
http://www.colorado.edu/Economics/Zax/
A survey last summer of CACI members, however, reported in the
August 10th issue of CACI’s The Colorado Capitol
Report (which can be found on CACI’s Website) the following
actions that companies say they will take if six major
exemptions identified by the CACI Tax Council are eliminated:
-
60 percent said they would halt or delay planned expansions;
-
46 percent said they would reduce workers’ wages or
benefits, or both;
-
49 percent said they would institute a hiring freeze;
-
45 percent said they would lay off workers; and
-
29 percent said they would relocate some or all operations
to other states or countries.
Second, the puzzling part of Representative Judd’s action is
that it takes place only one week after Governor Bill Ritter
unveiled to the legislative Joint Budget Committee his proposed
2010-2011 state budget, which includes permanently or
temporarily eliminating 13 exemptions, which was reported in
Monday’s issue of CACI’s The Capitol Report. The
Governor’s Office says that Governor Ritter’s targeting of these
exemptions will bring in $132 million in new tax revenue in the
effort to balance the state budget next year. Colorado has 100
business tax exemptions.
Third, the Governor’s economic development chief, Don Marostica,
told the hearing yesterday that the Ritter Administration is
opposed to elimination of many of the exemptions because they
are critical to Colorado’s efforts to attract companies to the
state.
Clearly, Representative Judd is swimming upstream against the
position of the Ritter Administration and, presumably, some
other members of his caucus, in his wholesale attack on business
tax exemptions. (Note that use of “exemptions” by CACI is
shorthand for the various business tax incentives, including not
only exemptions but exclusions, deductions and enterprise zone
credits).
For coverage by The Denver Post of yesterday’s hearing,
click on:
http://www.denverpost.com/legislature/ci_13775651
Finally, here are two columns on the business tax exemptions by
Representative Judd that have recently appeared online in The
Huffington Post:
http://www.huffingtonpost.com/joel-judd/corporate-tax-loopholes-c_b_295261.html
http://www.huffingtonpost.com/joel-judd/moving-forward-on-tax-ref_b_327808.html
Representative Judd can be reached via e-mail at
repjoeljudd@joeljudd.com
The Colorado
Health-Care Policy Landscape: Preparing for Major Federal
Changes in a Time of Tight Budgets
On Thursday, CACI’s HealthCare Council had the opportunity to
hear a presentation from Executive Director Joan Henneberry,
Executive Director of the Colorado Department of Health Care
Policy and Financing.
Henneberry shared her thoughts on federal health care
legislation; her Department’s budget cuts for FY 2009-2010 and
FY 2010-2011; and details regarding the Department’s legislative
priorities for the 2010 Legislative Session. She also answered
a number of questions from Council members.
Henneberry reviewed the efforts that the Department has made to
prepare for federal health-care reform, including the fact that
Colorado will likely be required to adopt enabling legislation
and regulations depending upon the final federal legislation and
that any state action would not occur until 2011. Henneberry
also highlighted her department’s budget restraints. The
Department, which administers the $4 billion Medicaid
state-federal Medicaid program, has experienced a 45 percent
growth since July 2007 in Medicaid caseloads because of the
recession and increased coverage for children. Children account
for 50 percent of the Medicaid recipients. The Department has
also been working with providers to find cost efficiencies in
providing medical records and in defining benefits.
Henneberry also provided information regarding the Department’s
2010 legislative proposals which include the following:
Medicaid Efficiencies Audit Act
·
Implements the State False Claims Act to ensure that the State
can achieve a greater state share from Qui Tam and Overpayment
recoveries;
·
Creates the Public Assistance Reporting System to identify the
appropriate state of resident for benefit recipients;
·
Creates a health insurance buy-in program in which the
Department pays the premiums, deductibles or co-insurance for
Medicaid clients with access to private health insurance when it
is cost effective for the State;
·
Creates national correct coding initiatives for the purpose of
preventing incorrect or fraudulent payments; and
·
Requires the Department to create an independent internal audit
unit to ensure compliance with the Department’s responsibilities
to the state and federal governments.
CIVHC All Payer Database
(APD)
·
Creates an APD to increase transparency in the health-care
system by assisting in the comparison of health care cost
efficiencies and effectiveness statewide.
RX Review
·
Amends current statute to allow pharmacy interns that have
reached their 4th year of pharmacy school to conduct
the reviews with supervision of a licensed pharmacist.
Combine Birth Certificates and Driver’s License for DRA Purposes
·
Would allow Department to verify birth certificates and driver’s
licenses electronically.
Additional Resource Entry Points
·
Modifies current law that specifically designates Community
Centered Boards as the single entry point to allow families
additional options.
30 and 1/3
·
Modifies current statute so that additional eligibility
modernization strategies can be implemented; removes Aid to
Families with Dependent Children (AFDC) related from the state
plan, including the 30 and 1/3 income disregard.
CACI members with concerns about the issues raised by Henneberry
should contact Loren Furman, CACI Vice President of Governmental
Affairs, at 303.866.9642 or via e-mail at
lfurman@COchamber.com
State Agencies
Provide Overview on Energy and Environmental Issues to CACI
Members
On Tuesday, the CACI Energy and Environment Council heard
back-to-back presentations by officials from two state
departments on the top issues facing the departments and their
legislative agendas for the session beginning in January. In
addition, the officials answered questions from the Council
members.
Martha Rudolph, Gary Baughman and several other staff
members of the Colorado Department of Public Health and
Environment (CDPHE) provided a comprehensive overview of the
challenges facing the CDPHE because of budget constraints and
the Department’s legislative agenda. The Department is faced
with a compensation and hiring freeze, four furlough days, and a
reduction in training and travel, all of which contribute to
reduced productivity. The water quality program is one that has
been hit especially hard, Rudolph said. At the same time, the
Department faces an increasing workload because of federal
Environmental Protection Agency (EPA) initiatives and lawsuits
against both the EPA and the CDPHE. In addition, citizen groups
are becoming more active in the environmental arena, which
further increases the Department’s workload, she said.
Consequently, Rudolph said, the Department is dropping new
initiatives, cutting back on non-essential work and focusing on
core programs. In particular, the CDPHE is shooting to meet
only the bare legal minimum for compliance with Federal
Government programs and funding, she said. One approach is to
streamline the permitting process using the Internet, she said,
and the Department is listening to businesses on ways to improve
productivity and efficiency.
Rudolph then reviewed such related issues as air quality,
regional haze, ozone and greenhouse gas emissions. She also
discussed the management of solid and hazardous waste. She said
the CDPHE will not advocate an increase in 2010 of the water
quality fee.
Mike King, Deputy Executive Director of the Colorado Department
of Natural Resources (DNR), said the Department would have a
“modest” agenda for the legislative session, such as encouraging
water conservation in new homes. Much of the DNR’s budget comes
from the severance tax and cash funds. The State Engineer’s
Office, which enforces state water law, has been hard hit by
cuts because it is funded by the General Fund budget, King
explained, and the Office has consequently lost five staff
positions this year. The Colorado Oil and Gas Conservation
Commission is still in the process of implementing the major
bill from 2008 that revamped the state’s laws and rules
governing oil and gas exploration and production.
Legislative
Council Approves Seven Draft Bills from the Pinnacol Committee
On Tuesday, the Legislative Council voted seven-to-six to
approve the seven bills recommended by the interim Pinnacol
Committee. The vote insures that the bills will be introduced
in the 2010 legislative session. Here are the seven draft bills
with their “short titles”:
·
“Workers’ Compensation Accountability,” which was Bill 1
·
“Workers’ Comp Policyholder Prot Act 2010,” which was Bill 3
·
“Limit Surveillance Workers’ Comp Claims,” which was Bill 4
·
“Pinnacol assurance Board of Directors,” which was Bill 11
·
“Workers’ Comp Benefits Knowing Penalty,” which was Bill 12
·
“Workers’ Comp Conflicts of Interest,” which was Bill 13
·
“Workers’ Comp Claims Process Brochure,” which was Bill 14
The Legislative Council is comprised of the majority and
minority members of both chambers of the legislature. The
Council is chaired by Senate President Brandon Shaffer
(D-Longmont) and the Vice-Chair is House Speaker Terrance
Carroll (D-Denver). The Council has 12 members from the
majority party (Democrat) and six members from the minority
party (Republican). For more on the Council, click on:
http://www.colorado.gov/cs/Satellite?c=Page&cid=1200536135403&pagename=CGA-LegislativeCouncil%2FCLCLayout&rendermode=preview
For more on the Pinnacol Committee, click on the legislature’s
Web page:
http://www.colorado.gov/cs/Satellite?c=Page&cid=1242822336368&pagename=CGA-LegislativeCouncil%2FCLCLayout
CACI Staff to
Address Manufacturing Issues
Loren Furman, CACI
Vice President of Governmental affairs, and David Tabor, CACI
Vice President of Membership, will be featured speakers at the
“2009 Manufacturing and Wholesale Distribution Executive Summit”
presented by CACI-Member RSM McGladrey and co-sponsored by
The Denver Business Journal. For more on RSM McGladrey,
click on:
http://www.rsmmcgladrey.com/
The Summit will be
held from 7:30 a.m. to 10 a.m., Tuesday, December 1st,
at the Hilton Garden Inn, 1400 Welton Street in downtown
Denver. CACI members are invited to this event and can either
call 303.803.9213 to register or register online at:
www.denver.bizjournals.com/denver/event/11171
Upcoming CACI
Council Meetings . . .
Labor and Employment Council, 10 a.m.--12 Noon, Thursday,
November 19th. The guest speaker will be Don
Mares, Executive Director, Colorado Department of Labor and
Employment (CDLE), who will discuss the CDLE 2010 legislative
agenda and listen to Council members’ concerns.
Tax Council,
10 a.m.--12 Noon, Friday, December 4th. The guest
speakers will be Ben Curtiss-Lusher and Jim Driscoll
with the Office of the Governor who will discuss the Governor’s
FY 2010-2011 budget proposal, and Roxy Huber,
Executive Director of the Colorado Department of Revenue (DOR),
who will review her Department’s legislative agenda and listen
to members’ concerns about regulations and legislation. |
