I’m going to be doing a live chat with Channel 2, News on the Deuce, from 7-8pm tonight. Go to Channel 2’s website to join the chat room and ask me any questions you might have.
I look forward to chatting with you.
If you can’t join the chat room tonight, please feel free to leave a comment here on the blog and I’ll get back to you as soon as I can.
Posted by SenatorShaffer as Blog at 6:15 PM UTC []
The Senate gave initial approval to my bill that will provide expanded coverage to autistic children. For more information, click here. The Senate will have its final vote on the measure on Monday, then it must move through two House committees and be approved by the full House before heading to the Governor for his consideration. So while the vote today is a victory for autistic children and their families, the fight is not over. The legislative process can be chaotic and unpredictable, but I do believe this bill is necessary and hope it will become law.
For those of you whose lives are touched by someone who has autism, I would like to let you know about an invaluable resource, the Autism Society of Colorado. Their mission is to promote quality of life for people with Autism Spectrum Disorders and their families, and their services range from connecting people to the professionals they need, to providing child care, and more. The Executive Director, Betty Lehman, has been a tireless advocate for Senate Bill 244, and I am grateful to have had her help.
Posted by SenatorShaffer as Blog at 5:29 PM UTC []
The United States has always stood for democracy and freedom, and essential to that freedom is our judicial system. Public safety and justice are equal priorities in this state, and in an effort to preserve fairness and public safety for all Coloradans, we introduced SB 286—a bill that would address sentencing reform.
In Colorado 1 out of 29 adults are under correctional control, which has translated into $686 million of funding to Corrections this year. We only give more funding to Medicaid and K-12 education. When we face the threat of closing community colleges, we clearly need to take a look at fair and just sentencing. But we realized that with a little more than two weeks left in the session, this needs a full and fair discussion.
We need a collaborative approach and everyone must be and will be at the table for it: Governor Ritter, law enforcement, district attorneys, the public defender, and those of us in the legislature. That is why tomorrow we will offer a strike-below on SB 286. This strike-below will offer some guidance on the work the state needs from the Colorado Commission on Criminal and Juvenile Justice. We will ask the Commission to look at sentencing reform and come back to the legislature in a timely manner with proposed solutions. We need the best policies and the best long term solutions for our budget problems, including sentence reform. Let’s be clear—sentencing reform is not synonymous with sentence reductions. Reform means just that: making changes to our correctional system to help it run more efficiently and to keep Colorado safe. All of us involved will make sure we are doing the right thing for our budget, for our correctional system, and for Colorado.
Posted by SenatorShaffer as Blog at 2:58 PM UTC []
On Sunday, the Longmont Times-Call printed an article I wrote about what will guide me as I lead the state as president of the Colorado Senate. Please see below.
Guiding Values
On Friday, my colleagues elected me to serve as President of the Colorado Senate. I’m honored to be given the opportunity to guide Colorado—a state blessed by 300 days of sunshine a year—back to brighter days.
Colorado is marked by rugged mountains that withstand the changing winds. Her people are no different. We are stable and resilient.
As elected officials during these uncertain economic times, we must embody the sturdy spirit of those we represent. We must remain steady like the mountains amidst the changing winds of the economy.
While this recession may try our nerves and test our principles, we will not let it erode our beliefs and the values that guide us. We must act in ways that leave no gap between our conscience and our conduct.
During these uncertain economic times, one thing is certain: only by working together can we build a better Colorado. I’m confident that this General Assembly has the courage to come together, push partisan politics aside, and focus on the needs of the people of Colorado. That means putting people above the pressures of special interest groups, lifting up all those who live and work here, protecting the vulnerable, preserving the environment, enhancing access to healthcare, and expanding educational opportunities. And all of those things become more important—not less—in times like these.
My goal is to guide our state according to Colorado values: honesty and integrity, compassion and respect, justice and fairness, courage and humility. I hope that each of us, regardless of party affiliation, will keep these principles in mind as we make important decisions on policies that affect every Coloradan.
The first action I will take as President will be to convene an interim commission to craft long-term solutions to our state’s fiscal situation that will allow us to budget according to our values instead of being constrained by conflicting formulas. By bringing together a bipartisan group of legislators and community leaders, we will create a budget process that is strong and stable so we can enrich our education system, strengthen the middle class, and support those who need help the most.
As we continue to make difficult decisions at the Capitol, we must do what’s best for the people of Colorado. We must balance the outcries of our critics with the credibility of our values. Even in these tough times, we will not sink into cynicism or be weighed down by doubt. Instead, we will rise out of the current economic downturn with optimism and confidence and do the job you sent us here to do-to make Colorado the very best place in America to live.
Posted by SenatorShaffer as Blog at 1:28 PM UTC []
President Groff will resign from the Colorado Senate after the session to take a position as the U.S. Department of Education as the Director for the Faith-Based and Community Initiatives Center.
Today, my colleagues elected me to replace him as the President of the Colorado Senate. Senator Morse will take my place as Majority Leader.
These are the remarks I made to my caucus following the election:
We have an incredible group of people in this caucus. By working together, we can create a better Colorado.
Some of you will remember when Gary Hart, former Colorado Senator, visited our caucus a year or two ago. He gave a talk about the conventional wisdom surrounding political analysis: that we tend to view the political spectrum as left versus right, and we characterize ourselves as being somewhere on that continuum.
However, Senator Hart expressed his belief that it’s not left versus right. It’s past versus future. Leaders who look to the future-those who come up with a plan so there’s stability, predictability, and confidence in our government, economy, schools, health care, and public safety-those are the ones who are ultimately successful.
A philosopher once said, “The best way to predict the future is to invent it.”
That’s what I intend to do as your next president. I intend to work with each of you and our Republican colleagues to invent a better future for Colorado.
This future will be based on Colorado values: honesty and integrity, justice and fairness, courage and humility, compassion and respect.
I am humbled by this great honor you have bestowed upon me.
Thank you.
Posted by SenatorShaffer as Blog at 3:34 PM UTC []
I am happy to report that the Senate Appropriations Committee approved my bill to provide insurance coverage for people who have autism. We still have a long way to go, but that vote is encouraging for the future of autistic kids.
As you probably know, ASD (Autism Spectrum Disorder) is a condition the scientific community still has a lot to learn about. Autism can be treated, but no cure is yet available. While the research for the cure continues, we need to take good care of the affected kids and their families. An autistic person can incur up to $5 million in medical expenses throughout his or her life–far too big of a burden for any one person to bear. That is the reason why I am sponsoring SB 244, and I hope that it continues through the process to become law. For more information about the bill, click here.
Next step: consideration by the full Senate.
Posted by SenatorShaffer as Blog, Colorado Kids at 5:35 PM UTC []
Senate Bill 281, passed on third reading and final passage in the Senate today. This bill allowed the Joint Budget Committee to transfer $500 million from Pinnacol Assurance’s surplus to the General Fund. This means that we will not have to cut $300 million from Higher Education, and we will convene an interim committee to study the best means of providing fair workers’ compensation in our state.
These are the remarks I made on the floor today:
“I move Senate Bill 09-281 on Third Reading and Final Passsage and request an ‘Aye’ vote.
Members, this is one of two Pinnacol Assurance bills moving through the system.
This bill does essentially four things: (1) it restructures the governance of Pinnacol so its management rests with its board of directors, not its CEO; (2) it requires Pinnacol to issue a dividend equal to 5% of its surplus to policyholders with 50 or fewer employees; (3) it calls for a performance audit of Pinnacol; and (4) it convenes an interim committee to study Pinnacol’s operations.
It is important to note that Pinnacol is a Division of the State of Colorado. It pays no taxes, and its Board of Directors is appointed by the Governor and confirmed by the Senate. If Pinnacol did pay taxes, based on conservative estimates, the state would receive approximately $40 million per year.
Pinnacol’s history dates back to 1915 when the first workers compensation laws were passed in Colorado. At that time it was simply a state fund controlled by the “Industrial Commission” and was intended to offer workers compensation coverage to high risk industries.
It wasn’t until 2002 that the legislature changed the name of the state fund to Pinnacol Assurance and authorized the transfer of assets out of the state treasury into the control of Pinnacol’s board. On the basis of the legislation passed in 2002, Pinnacol and, now the Attorney General, claim that Pinnacol is a private company and their assets do not belong to the state.
However, Colorado’s Constitution contains several prohibitions against special legislation designed to benefit private businesses. Specifically:
Article V, Section 25: ‘The general assembly shall not pass local or special laws … granting to any corporation, association or individual any special or exclusive privilege, immunity or franchise whatsoever;’ and
Article V, Section 34: ‘No appropriation shall be made for charitable, industrial, educational or benevolent purposes to any person, corporation or community not under the absolute control of the state.’
The only way the transfers that occurred as a result of the 2002 legislation could be considered constitutional is if Pinnacol was then, and remains now, a division of the state. Otherwise, those transfers were, and remain, unconstitutional.
Of course, the opinion issued by the Attorney General’s office didn’t address this argument. Nor did it address the issue of Pinnacol’s lack of standing to initiate a lawsuit against the state. One division of government cannot sue another.
Indeed, the Attorney General took it upon himself to intervene in a critical political discussion to inform us of his ‘opinion.’ However, he never actually sent the sponsors of the legislation a copy of his memo.
I learned of his memo from Tim Hoover, a reporter for the Denver Post, who contacted me late Friday afternoon to get my reactions to the AG’s opinion. I told him I had not yet seen it, and asked if he might be willing to forward a copy to me. He did, along with the string of emails by which Mr. Hoover received the memo. It had been delivered earlier in the day by Mike Saccone, press staff for the Attorney General, with the notation ‘Enjoy.’
The Attorney General is playing high stakes games. This is demonstrated by his legal analysis, which is long on politics, but short on the law.
Other than missing the two arguments already mentioned related to unconstitutional special legislation and lack of standing, the AG’s opinion concludes that policyholders have an express right to the surpluses of Pinnacol Assurance and the state does not have the ability to transfer Pinnacol’s massive surplus to higher education.
However, the opinion provides no analysis of the actual contract between Pinnacol Assurance and its policyholders. I have distributed a copy of this contract to each of you. There is nothing in it that creates an ownership interest between the policyholder and Pinnacol, nothing that guarantees a dividend, nothing that guarantees a return on investment. Pinnacol operates as an insurance company, not an investment vehicle.
The bottom line remains the same. We still have a huge hole in our budget and are in a position where we may need to cut $300 million from higher education. That is simply unacceptable.
Pinnacol Assurance is a division of the state. It pays no taxes. It currently has a reserve account for known losses of over $600 million. It has a second reserve account for potential losses that may be filed in the future. In this account there is an additional $600 million – almost twice what private insurance companies carry. On top of that, Pinnacol is sitting on a surplus of approximately $700 million.
Based on these numbers, there is absolutely no justification for Pinnacol to increase premiums to policyholders or to claim that the actions of this legislation, or its companion, Senate Bill 09-273 will destabilize Pinnacol’s operations.
Pinnacol Assurance is a division of the state. It pays no taxes and its massive surplus can be better spent on higher education in Colorado.”
This week, Colorado’s General Assembly is setting the state’s budget for next year. It is more than just a set of numbers; it’s a moral statement reflecting our values.
The current recession has torpedoed revenues, leaving Colorado with a $1.4 billion shortfall. In an effort to craft a fiscally responsible, balanced budget, we have been forced to make hundreds of millions of dollars in deep and painful budget cuts.
For example, we’ve cut the senior homestead tax exemption, cut funding for preschool through 12th-grade education and delayed Medicaid payments. We’ve closed a prison and postponed the opening of another, frozen employee salaries, and abolished performance pay incentives.
We’ve cut or frozen the budgets of state agencies and departments. We’ve put systems of transparency and accountability in place to ensure that programs operate as efficiently as possible. And we’ve drained our reserves. But, after all of this, we are still $300 million short.
The fact that we have budget issues isn’t a surprise. With the downturn in the economy, we knew we would have shortfalls, so we asked our staff to review each division of government to see if there were any “stones left unturned.” We found one: Pinnacol Assurance.
Pinnacol is a state entity that sells workers’ compensation insurance and currently holds nearly $700 million over and above the reserves it has set aside to pay both current and future claims.
No government agency wants to reduce its assets, spending, or authority. Pinnacol’s managers are no different, and they oppose this transfer. However, as state legislators, we have a responsibility to look beyond Pinnacol’s narrow interests and consider the general good of the entire state.
Unfortunately, without the transfer of funds from Pinnacol, the legislature will be forced to cut $300 million more from one of the few areas it still can: the Department of Higher Education. This would mean shuttering community colleges and slashing support for our public universities. Our Joint Budget Committee is exploring other options, but alternatives are slim.
It has been suggested, for example, that the state implement furloughs to make up the budget deficit. A state employee furlough would save only about $1.3 million per day in general funds. That means the “furlough” would need to last 230 days next year to make up the estimated remaining shortfall of $300 million.
The problem is that the shortfall is so large that a number of state departments could be eliminated entirely, and we still wouldn’t save enough money to balance the budget.
As reported in The Denver Post last week, Pinnacol’s $700 million surplus is “about six times more than regulators require.” As a result, transferring Pinnacol’s surplus to the general fund will have zero effect on Colorado’s stable workers’ compensation market, on employers’ premiums, or on Pinnacol’s ability to meet its future obligations to injured workers.
While Pinnacol does have some measure of autonomy, a review of state law reveals that Pinnacol is defined as a “political subdivision of the state” and is clearly under state government control. It was created by an act of the legislature, and its structure in state law has been amended many times over the years.
Pinnacol pays no state taxes, and it enjoys the privilege of government immunity. Unlike any private corporation, Pinnacol’s rates are set by the state’s Division of Insurance. Its board of directors is appointed by the governor and confirmed by the Senate.
With the transfer of a portion of its unused surplus, Pinnacol will still be able to serve Colorado as the workers’ compensation insurer of last resort, and Colorado can meet its obligations to its young adults.
In the context of our budget, this is a moral discussion. We must do all we can to preserve higher education funding and position Colorado for a fast and strong recovery from our current economic crisis.
A prison is closing. The expansion of full-day kindergarten is halted. State employees’ salaries are frozen. We’ve dipped into the statutory reserve. And Colorado is looking at possibly closing some community colleges if legislators can’t find a way to backfill the suggested $300 million in cuts to higher education.
The cuts in the 2009-10 budget are deep and Senate Democrats are working to protect essential services. At the same time higher education is looking at almost $300 million in cuts, I introduced SB 281, which would spare these serious cuts by transferring a portion of a state entity’s $700 million surplus to the General Fund. SB 281 passed the Senate Appropriations Committee today and will be on second reading on the Senate floor Thursday.
Cutting $300 million from higher education is entirely unacceptable to me. It would force layoffs at a time when we need to create as many jobs as possible; it would stunt economic growth at a time when we need it most; and it would nearly price out the middle class from attending our universities and colleges. When we must choose between allowing a state entity to sit on a $700 million surplus or closing colleges in Colorado, the choice is clear. We absolutely must preserve post-secondary education.
What SB 281 does:
–Sets up the transfer into the General Fund of almost $500 million in surplus from the state entity, Pinnacol Assurance, which provides workers’ compensation insurance to companies in Colorado. (That surplus is 6 times over and above what the Division of Insurance says is needed to ensure the solvency of Pinnacol’s operations.)
–Provides new, rigorous oversight in two ways:
1. Provides the State Auditor with enhanced powers to review Pinnacol’s operations and creates an interim committee of the Legislature and charges it with a comprehensive review of the workers’ compensation market in Colorado, including Pinnacol’s executive salary and bonus packages, premium rates, and payments to workers injured on the job.
2. Requires Pinnacol Assurance to pay a dividend to small businesses equal to 5% of Pinnacol Assurance’s surplus.
What SB 281 does NOT do:
–SB 281 doesn’t affect Colorado’s stable workers’ compensation market.
–SB 281 doesn’t affect Pinnacol’s ability to meet its current or future obligations to injured workers or the families of workers killed on the job.
–SB 281 doesn’t affect Employer’s premiums (In fact, premiums may go down if Pinnacol realizes that, since they have been accumulating a surplus, they can lower rates to a level commensurate with claims payments without losing money).
The bottom line: Pinnacol is a state entity and the General Assembly can access its excess surplus.
–Pinnacol was created by an act of the legislature, to act as the state’s workers’ compensation insurance provider of last-resort. Pinnacol is a “political subdivision of the state” under 8-45-101 (1), C.R.S., and does not pay state or federal taxes.
–Pinnacol enjoys the privilege of governmental immunity.
–Unlike any private corporation, Pinnacol’s rates are set in state statute.
–Its Board of Directors is appointed by the Governor and confirmed by the Senate.
Joint Budget Committee members Senators Moe Keller (D-Wheat Ridge), Abel Tapia (D-Pueblo) and Al White (R-Hayden) are co-sponsors of the bill.
Thomas Jefferson once said, “Our wish…is that the public efforts be directed honestly toward the public good.” As Colorado elected officials, we feel the same way-when citizens work hard to put a measure on the ballot, we want their efforts to be honestly directed.
The citizens of Colorado have the constitutional right to use the tools of direct democracy. They can put initiatives on the ballot if they can garner enough public support. This is an important right and a critical piece of our democracy, but when fraudulent activities occur in the signature-gathering process, it abuses this fundamental right.
The process is being unfairly manipulated when valid signatures aren’t counted, when invalid signatures are counted, when people who can’t vote and people who don’t even live in our state are getting paid to gather signatures to change our constitution. I invite you to watch this video of a 14-year-old girl discussing her role in the illegal collection of signatures for a petition that made it to the ballot last year.
House Bill 1326 will prevent petition fraud and strengthen our direct democracy by ensuring the integrity of our ballot initiatives, streamlining and strengthening the petition review process, and expanding the residency status review.
The bill passed through the House State Affairs Committee yesterday and will next be heard by the full House before moving to the Senate.
For more information, check out the following article: Lawmakers target ballot fraud with new bill .
Posted by SenatorShaffer as Blog at 5:14 PM UTC []