“Government is the people's business and every man, woman and child becomes a shareholder with the first penny of tax paid.” – Ronald Reagan
Staff Changes at Axiom
At the end of July Axiom Strategies Inc. announced the departure of long time employee Peggi O’Keefe. Peggi left the Axiom family to launch her own venture "Clear Strategies". Peggi will continue her career as an accomplished legislative advocate and political consultant as the head of her new firm. We wish Peggi the best of luck and much success in her new endeavor. With the departure of Ms. O'Keefe, watch for some exciting additions to Axiom's staff in the next couple months.
Signatures Submitted for Senator Heath’s Education Tax-Increase Initiative
Last week Senator Rollie Heath (D-Boulder) submitted more than 140,000 signatures in his effort to qualify a statutory initiative for the November 1st ballot that would temporarily increase taxes by about $2.9 billion for education over the next five years.
Senator Heath’s proposal calls for increasing taxes--beginning January 1, 2012--by boosting the state income tax from 4.63 percent to 5 percent while hiking the state sales-and-use tax from 2.9 percent to 3 percent.
The third and final draft of the legislative staff’s Blue Book analysis of Initiative 25 has been completed.
According to the Blue Book draft analysis, the proposal would raise $514.7 million in 2012, the first full calendar year. Of this amount, the individual income tax increase would be $398.8 million, the corporate income tax increase would be $39.8 million and the sales-and-use tax increase would be $76.1 million.
The increased revenue would be earmarked for K-12 and higher education above that budgeted for the state’s fiscal year 2011-2012. The fiscal year 2011-2012 budget contains a reduction in K-12 education funding of $266 million, which is a cut of 6.1 percent, from the prior fiscal year.
The state’s budget for 2011-2012, which began July 1st, contains $4.3 billion for education: $3.7 billion for pre-kindergarten through high school and $624 million for higher education. The $4.3 billion is about 50 percent of the state’s General Fund.
In other words, the $4.3 billion will become the minimum level of spending for each year during the five-year period, according to the Blue Book draft analysis.
The proposal does not stipulate, however, the manner in which the additional revenue would be allocated between higher education and pre-kindergarten through high school.
Within 30 calendar days from last Monday, the Secretary of State must issue a “statement of sufficiency” that verifies that the petitions contain at least 86,105 valid signatures of “registered electors”. For the “coordinated election” this November, an initiative needs 5 percent of the total number of ballots (1,722,096) cast in the last general election (2010) for the Secretary of State’s race. This number is 86,105.
Proposed initiative 25--the number is assigned by the Legislative Council--will then receive a “Proposition” number from the Secretary of State’s Office.
Legislative Reapportionment Continues
Colorado’s Reapportionment Commission began a twenty city tour this week to get public input on proposed maps for redrawn state legislative districts.
The Commission can revise the maps after the statewide hearings but must submit the final plans for approval to the Colorado Supreme Court by October 7th. December 14th is the final day for the Commission to submit the approved plan to the Colorado Secretary of State.
In its latest action, the Commission approved a preliminary Republican-drawn preliminary map for the House and a Democratic-drawn preliminary map for the Senate. Since then, both maps have drawn sharp, partisan criticism, with Democrats aiming at the House plan and Republicans targeting the Senate plan.
Both maps were approved on 5-to-6 votes. The Commission is comprised of five Republicans and five Democrats. The key vote came in each case from Mario Carrera, an unaffiliated voter from Parker. Colorado Supreme Court Justice Michael Bender appointed Carrera, who is the Vice President and General Manager of Entravision Communications Corporation.
Mayor Hancock Builds Team
Newly-elected Denver Mayor Michael Hancock last month made two important selections to add to his administration. Wil Alston will become Communications Director and Doug Friednash will serve as City Attorney.
Alston served as Deputy Communications Director under former Gov. Bill Ritter from 2007-2009 before serving as the Executive Director of the Five Points Business District. Alston most recently lost a bid for Denver City Council District 8, being defeated by Albus Brooks.
In 2009, Alston became Executive Director of the Five Points Business District, which was created by then-Mayor John Hickenlooper and former District 8 City Councilwoman Carla Madison. Alston is not leaving the organization entirely, but will now join the organization’s board of directors.
Friednash, 49, helped Hancock during his campaign and was an early supporter.
Friednash, a lawyer at Greenberg Traurig, served in the state House from 1992 to 1996 and has been involved in several high-profile cases, including as lead counsel for the court cases opposing Amendment 41 in 2006 and Amendment 54 in 2008. A Democrat, he defended GOP U.S. Rep. Mike Coffman in the first matter ever brought before the Colorado Ethics Commission and was the legal counsel for Democrat Mark Udall's U.S. Senate campaign.
He is a Denver native and, like Hancock, attended Manual High School.
Main Street Fairness Act Introduced in Congress
On July 29, 2011 Senator Dick Durbin (D-IL) and Representatives John Conyers (D-MI) and Peter Welch (D-VT) introduced the “Main Street Fairness Act” in their respective chambers of the U.S. Congress. If enacted, the measure would enable states to require internet retailers to collect sales tax for all purchases made online. Currently, internet retailers only have to collect sales taxes in states where they have a physical nexus (store, office, warehouse, or distribution center).
Most taxing entities have what is known as a “use tax,” which requires consumers to pay a tax when they make a remote or online purchase and sales tax is not collected by the retailer.
However, few consumers are aware of this tax liability. This uncollected tax can represent a sizable amount in lost revenue for states. A 2009 University of Tennessee study estimates in 2012 that number could be as high as $23 billion.
The bill has widespread backing from developers, retailers and revenue-starved states and even from Amazon.com, which said it welcomes a measure that will treat all retailers equally.
Currently, online retailers are only obligated to collect sales taxes in those states where they have a physical presence, such as a store or warehouse.
Former Educator Appointed to House District 50
Weld County Democrats in July picked former educator and Weld County Council President Dave Young to fill the remaining term of former State Representative Jim Riesberg who left the Legislature to become the state’s Insurance Commissioner.
Young served on the Weld County Council in the 1990s and served as the President of the Greeley teacher’s union in the 1980s.
Young will serve out the remainder of Riesberg’s term, and said he plans to run for re-election in 2012.
Young, who taught math and science at Heath Middle School and has served as a faculty member of the University of Colorado-Denver’s online education program, said the budget process shouldn’t pit higher education against K-12.
“We need to take serious looks at how we streamline government to support education,” he said. “If we improve the economy, there’s more dollars.”
House District 50 includes portions of Greeley east of 35th Avenue, as well as Evans and Garden City.
Young served on the Weld County Council from 1990 to 1994, including a stint as council President in 1994. He is a faculty member at the University of Colorado-Denver, where he teaches in the online education program after several years as a senior instructor. He also taught math and science at Heath Middle School in Greeley. He earned his advanced degrees from the UC-Denver and Colorado State University. He served as president of the Greeley Teachers Association from 1983-1985 and has volunteered for Donor Alliance Advocates for Life and the Poudre River Trail. Young has been a resident of House District 50 since 1975.
Hickenlooper Names Brohl Executive Director of Department of Revenue
Gov. John Hickenlooper has announced Barbara J. Brohl will be the new Executive Director of the Colorado Department of Revenue.
“Barb’s extensive leadership and business experience, particularly her expertise in compliance, technology, customer service and training, will be a great asset to the Department of Revenue,” Hickenlooper said. “She is an active community member and we are pleased to have her as part of our team.”
Brohl worked at Qwest, and previously US WEST, since 1983. She addressed all business and legal matters regarding large wholesale carriers, negotiating commercial transaction contracts and settlement agreements, resolving billing disputes, and customer service. Brohl has also served as a judicial law clerk for Colorado Supreme Court Justices Gregory J. Hobbs, Jr. and William H. Erickson.
As Executive Director, Brohl will be the principal officer for Colorado’s Tax Division and the Division of Motor Vehicles. Included under her umbrella of responsibility are the Divisions of Gaming, Tobacco and Alcoholic Beverages, Lottery, Racing, Hearings, and the recently added Division of Medical Marijuana.
State Sales Tax Service Fee Restored
The Colorado state sales tax Service Fee (also known as the Vendor’s Fee) has been restored and the rate is now 2.22%. The fee may be claimed on timely filed and paid sales tax returns submitted on or after July 1, 2011 beginning with sales tax returns for June 2011 and 2nd quarter 2011 due on July 20, 2011.
Claim the fee, file the return, and pay online through Revenue Online at
The service fee applies to state sales tax, state retailers use tax, and Regional Transportation District (RTD), Scientific and Cultural District (CD), Football District (FD), Baseball District (BD) sales tax. The service fee rates for state-collected cities, counties and other special districts are not changed. The service/vendor’s fee does not change the Colorado state sales/use tax rate which is 2.9%.
The service fee may be kept by the licensee ONLY if the tax return is filed and paid on time.
Aurora Sentinel: State GOP Decries Lack of Progress with Business Regs
Democratic Gov. John Hickenlooper told Colorado lawmakers this year he wanted to them to carefully consider how their decisions affect businesses. Republicans say they did — and they blame Democrats for quashing GOP attempts to implement Hickenlooper's vision.
"The fact is, we've tried to run these bills and there seems to be a philosophic schism between the governor and the Senate Democrats," said Republican Sen. Kent Lambert. "I think it's going take some leadership on the governor's part."
Republican lawmakers brought up the issue during a quarterly state economic forecast presented last week. Analysts from the governor's office and the nonpartisan Legislative Council told lawmakers that growth in small and medium-sized business continues to struggle, in part because of tight credit and lack of funding for new entrepreneurs.
Economists from Hickenlooper's office also said the state saw a slight decline in new businesses and jobs created by start-ups in 2007. That only got worse in 2009, when new businesses and the jobs they created fell by 20 percent, the biggest decline in Colorado since the late 1980s, they said.
Throughout the 2011 session, Republicans insisted that one way to help businesses was to ease regulations, and they presented a number of bills that they argued would do so. One bill, sponsored by Senate Republican Leader Mike Kopp, would have created a bipartisan panel to examine Colorado's business regulatory system and determine whether economic conditions called for scaling it back.
The bill was killed in committee in the Democratic-controlled Senate.
Gov. Hickenlooper Seeks Additional Federal Disaster Assistance
Gov. John Hickenlooper sent letters last month to U.S. Agriculture Secretary Tom Vilsack requesting disaster assistance for eight Colorado counties.
One letter sought drought assistance for Alamosa, Conejos, Costilla, Rio Grande and Saguache counties.
“Drought impacts are resulting in the loss of native grass, mixed forage, cool season grasses and alfalfa throughout the San Luis Valley in south-central Colorado,” the governor’s letter said. “Losses are greatest to cool season grasses reaching 75 percent. The availability of surface water has resulted in many producers having to abandon alfalfa irrigation completely.”
A second letter sought disaster assistance for three Western Slope counties.
“Freezing temperatures struck the fruit growing areas in Delta, Mesa and Montrose counties beginning the last week of April and continuing through the first week in May 2011,” the governor’s letter said. “As a result, producers of apples and stone fruits in the counties suffered production losses as high as 95 percent.”
The declarations, if approved, would allow farmers and ranchers to apply for emergency loans if they are unable to obtain credit elsewhere.
Hickenlooper Announces Board and Commission Appointments
The Colorado Oil and Gas Conservation Commission promotes the responsible development of Colorado’s oil and gas natural resources by balancing the efficient exploration and production of oil and gas resources, the prevention of waste and the protection of the public health, environment and mineral owners’ rights. The new commission members replace members whose terms expired July 1, 2011. They must be confirmed by the Colorado Senate and will serve terms of four years, expiring July 1, 2015. The new commission members are:
Mayor Tommy E. Holton of Fort Lupton
John H. Benton of Littleton
W. Perry Pearce of Denver
Andrew Lawrence Spielman of Denver
Thomas L. Compton of Hesperus, reappointed
Richard D. Alward of Grand Junction, reappointed
The governor also appointed Mike King, Executive Director of the Department of Natural Resources, and Dr. Chris Urbina, Executive Director of the Department of Public Health and Environment, to the commission. A ninth member of the commission, Dolly Ann “DeAnn” Craig of Denver, serves as a member with substantial experience in the oil and gas industry and a college degree in petroleum geology or petroleum engineering and as a Republican. Her term expires July 1, 2012.
The Early Childhood Leadership Commission aims to improve outcomes for young children from birth to age 8 and their families. The Commission is charged to identify opportunities for, and address barriers to, the coordination of federal and state early childhood policies and procedures that affect the health and well-being of Colorado’s children. The members appointed are:
Reggie Bicha of Denver to serve as the designee for the Department of Human Services.
Jim Lynn of Thornton to serve as the designee for the Office of Information Technology.
David G. Ferrill of Centennial to serve as the designee of the Office of Economic Development.
Heather L. Tritten of Denver to serve as the Director of the Head Start State Collaboration in the Office of Lt. Gov. Joe Garcia.
Additionally, the following individuals were appointed to serve as Co-Chairpersons of the Early Childhood Leadership Commission:
Reggie Bicha, as a representative of a public entity.
Anna Jo Haynes, as a representative of a private, non-profit entity, reappointed.
Patrick H. Hamill, as a representative of the business sector, reappointed.
The Hospital Provider Fee Oversight and Advisory Board is responsible for working with the Department of Healthcare Policy and Financing and the Medical Services Board to develop the hospital provider fee model, monitor implementation of House Bill 09-1293, help with preparation of annual reports on the program and ensure that the Medicaid and CHP+ eligibility expansions are implemented as intended. The new members are:
Peggy Jordan Burnette of Denver to serve as an employee of a hospital in Colorado, with a term expiring May 15, 2012.
Michelle Lynn Joy of Sterling to serve as an employee of a rural hospital in Colorado, with a term expiring May 15, 2015.
The CoverColorado Board of Directors works to provide access to health insurance to approximately 2,500 Coloradans through the CoverColorado program. Recipients are considered “high-risk” and not covered by other insurance companies due to pre-existing health conditions. The members appointed are:
Gary S. Carolson of Castle Rock representing individuals who are currently insured under the program, reappointed with a term expiring July 1, 2015.
Carrie S. Etherton of Denver to serve as an individual who is currently insured or who has been insured under the program, with a term expiring July 1, 2015.
Christopher Jon Miller of Denver to serve as a representative of an insurance carrier, with a term expiring July 1, 2013.Keith Evans of Lonetree to serve as a representative of insurance carriers, with a term expiring July 1, 2014.
The Western Interstate Commission on Higher Education is composed of three members each from 13 Western states. The commissionstudies the needs of professional and graduate educational facilities in the region, the resources for meeting such needs and the long-range effects of the commission’s findings on higher education. Each state’s commissioners submit a report to their Governor and General Assembly. The new members are:
Demetri E. “Rico” Munn of Denver, with a term expiring March 28, 2013.
Lt. Gov. Joseph A. Garcia of Pueblo to serve as a representative of educators engaged in the field of higher education, with a term expiring March 28, 2014.
Dr. Dene Kay Thomas of Durango, with a term expiring March 28, 2015.