The announcement Monday of the labor appointment by Democratic Gov.-Elect John Hickenlooper stirred up passions among Republicans, who said the development was bad for business. They cited Golombek’s ties to organized labor, including her onetime leadership of the Colorado AFL-CIO.  Golombek is currently the state director for America Votes, an organization whose stated purpose is to “advance progressive policies, expand access to the ballot, coordinate issue advocacy and election campaigns, and protect every American’s right to vote.”

Senate Minority leader Mike Kopp, R-Littleton, fired off a prepared statement this week saying Hickenlooper’s appointment would trigger fears among the state’s employers.

“His selection of a noted progressive activist and union boss in Ms. Golombek certainly will raise plenty of eyebrows in Colorado’s business community,” said Kopp.

Tony Gagliardi of the Colorado chapter of the National Federation of Independent Business, said his members would try to work with Golombek, and he pointed to his group’s cordial relations with the current department director, Don Mares, appointed by outgoing Democratic Gov. Bill Ritter. Gagliardi said he is hopeful that will be the template employed by Golombek.

“We aren’t going to resort to using labels,” said Gagliardi. “We do have different philosophies, but the issues that she will be facing are non-partisan issues.  We just need everyone at the table coming to a common solution.”

The most immediate issue that Gagliardi says merits serious attention is the solvency of the state’s unemployment fund. It is encumbered with federal debt that was incurred to shore it up as unemployment levels rose during the recent economic downturn, drawing down reserves.

Sen. Linda Newell, D-Littleton,  with ties to the business community as a human-resources consultant, said concerns across the aisle about the appointment may prove moot if business is given a fair shake.

“As long as everybody’s at the table talking – I’m happy,” said Newell.   “Coming from an HR background, I see things from both perspectives.  With business and labor together, you can only be going in the right direction.”

Meanwhile, Democratic Gov.-elect John Hickenlooper says if it passes, the lost revenue would have to be offset elsewhere in the budget.

Two years ago, the Democratically controlled legislature passed Senate Bill 09-108, dubbed FASTER, which Gov. Bill Ritter signed into law. FASTER tacked on a $41 fee on average onto vehicle registrations and imposed an additional $25 late fee per month up to $100 for those people who failed to renew their tags before the expiration date.

It’s the increased late fee, says Republican Rep. Randy Baumgardner, of Hot Sulphur Springs,  that really has people irritated. He will introduce a bill to roll it back. Baumgardner’s proposed legislation would reset the state’s late fee to a flat, $10 penalty that is applied at the discretion of each county, as was the case statewide prior to FASTER.

The fee has been of particular concern to rural residents who often own multiple vehicles for seasonal uses and don’t use them, or see the need to register them, year-round.

“When they go to register their vehicles that have sat idle, they are slapped with a $100 surcharge, per vehicle, in addition to the increased fee that applies to all registrations across the board,” said Baumgardner.

Hickenlooper said today at a legislative preview with the press that it’s up to the legislature to decide whether or not to tinker with the fee, but something still has to be done about failing bridges since FASTER dollars go toward repairs.

“I don’t want to step on their (the legislature’s) toes—that’s their decision,” said Hickenlooper. “FASTER did not solve the problem, it was a Band-aid.”

Hickenlooper said that while he was campaigning for governor, he heard as well from citizens who were upset over the fees. He said many ranchers and farmers told him that they were suddenly having to pay much more to register a vehicle that they would use six or eight weeks a year and that they felt it was patently unfair to them.  The problem though, says Hickenlooper, is finding a better way to fund the bridge repairs that he says are woefully underfunded even with FASTER in place.

“If someone wants to repeal FASTER, my question to them would be where are you going to get those revenues from?  Right now there’s no obvious source for that,” said Hickenlooper.

Yet, Baumgardner says that the imposition of a late fee the people may eventually learn to avoid, ultimately, would bring in zero dollars.

“If everybody pays on time, then where does the money come from? “ suggested Baumgardner.

“It’s the impact on families that are struggling out here and ask themselves, ‘Do I feed myself or my family, or do I pay for the plates on my vehicle?’ ” said Baumgardner.  “For some folk, who for one reason or another are late on their registration, it’s a very real dilemma.”

The Civil Rights Division is unique in Kelley’s department  in that it receives both state tax revenue and federal funds rather than revenue from user fees, which fund much of the rest of her agency.  The division, says Kelley, has done its part to help the administration of Gov. Bill Ritter balance the state’s budget for the last three years; the resulting cuts have affected its ability to qualify for federal money. She said the latest round of cuts in state funding to the Civil Rights Division “has reached a point of jeopardizing federal funds the division receives.”

Kelley told the panel that federal funds are based on the quantity of timely, successful investigations into cases of housing and employment discrimination. With fewer investigations completed due to declining state funding, she said, “we don’t have the ability to increase our portion of federal funds.”

Kelley noted that the fee-generated cash funds that make up over 96 percent of her department’s $70.9 million budget are collected through the department’s wide-ranging regulatory activities and only can be used to cover the costs of those functions–not to help sustain the Civil Rights Division.

Nonetheless, lawmakers and the Ritter administration have relied heavily on cash funds from various programs in recent years to fill in funding gaps in the the state’s operating budget. Cash funds are made up of money collected as fees and assessments for specific purposes such as a licensing fee paid by regulated industries.

“The fee-payer dollars that support DORA appropriations are every bit as precious as tax dollars, and fee impacts create very real consequences for the professionals and businesses we regulate,” said Kelley. “We fully understand and remain committed to our obligation for the wise and efficient use of fee-payer resources.”

Kelley lobbied the committee to keep the Civil Rights Division afloat despite the fact that it is the only part of her department receiving tax revenue out of the operating budget–and despite assurances by Rep. Cheri Gerou, R-Evergreen, that the division was not under consideration for elimination.

“You could eliminate every program (within DORA) across the board and you would not impact the state’s budget by one dime, except, with respect to the allocation to the Division of Civil Rights,” said Kelley.  “If you’re asking me if I as the executive director of DORA would recommend to you that we disband the Civil Rights Division to save $1.5 million, my response is, absolutely not.”

The budget committee–which holds the fiscal purse strings and will be mulling the governor’s proposal before unveiling its own version of the budget to lawmakers next spring–had convened after formally electing new chairs and recognizing its mostly new members.

On the heels of the committee selections, Sen. Mary Hodge, D-Brighton, who now chairs the JBC, and Rep. Mark Ferrandino, D-Denver, offered sobering words in prepared statements.

“Balancing the budget during an economic downturn is no easy task,” said Hodge.  “It will require decisive, conscientious collaboration to craft a budget that will support the financial sector, preserve core services and best serve Coloradans in every corner of the state.”

In a vote of confidence, Ferrandino remarked that he trusts, “that under the wise leadership of Sen. Hodge, we will continue to find ways to work together and tackle our difficult budgetary issues.”

That chore began swiftly as two of the three Republicans on the committee challenged the governor’s proposal for once again diverting money into the state’s General Fund despite having been collected and earmarked for specific purposes.

The budget committee’s vice chair, Rep. Cheri Gerou, R-Evergreen, asked the governor why $50 million in hospital provider fees were being re-routed into the general fund.  The money from the fees, authorized by House Bill 09-1293, is intended to enhance federal Medicaid dollars while allowing for more recipients.

Ritter said the money will indirectly go to the same purpose, giving aid to the Medicaid patients whose ranks, he said, have grown by 59 percent since he became governor.

“It is very much connected to Medicaid patients and the expanded population, “said Ritter.   “It’s not like we’re taking money that was once dedicated for the expanded population and using it somewhere else.  We’re using it for a purpose that is very much related back to the hospital provider fee, which is to utilize dollars for the underserved or those who are on public health programs.”

Newcomer and freshman Rep. Jon Becker, R- Fort Morgan, asked Ritter about a line item that takes money from a fund that provides communication services to rural areas paid for in fees.

“Will there be a fee increase to make up for the deficit?” asked Becker.

Ritter said that a fee increase would be up to the Public Utilities Commission and the legislature but that the rural areas will still see a surge in communications infrastructure due to an influx of federal dollars dedicated to that end.

“The stimulus act has provided dollars into the state of Colorado to build out a broadband in a way that it was not before and where we have the real possibility of having ubiquitous broadband,” said Ritter.  “That’s an advantage to rural areas that we should keep in mind.”

Meanwhile, Ritter administration budget chief Todd Saliman was more blunt about the decisions that will soon have to be made.

“It’s just hard,” said Saliman

Democratic Gov. Bill Ritter is praising the new energy project, begun last week at the Capitol building, which will provide cheaper geothermal heating and cooling for years to come once it’s completed next spring.

“This is a great project to highlight the significant potential that geothermal energy has here in Colorado, and it serves as a shining example of how the New Energy Economy creates jobs, diversifies our energy resources and bolsters energy security,” said Ritter.

The total cost of the project is an estimated $6 million, with $4.6 million coming from a U.S. Department of Energy grant under the American Reinvestment and Recovery Act and the remainder, $1.4 million, picked up by the state through certificates of participation and a lease-purchase agreement with Chevron. Estimated energy savings are $95,000 annually.

Yet, Republican state Sen. Kevin Lundberg, of Berthoud, said today the project won’t reach the point of breaking even for decades, and the price is too high to make sense. Lundberg also said that, in any event, the governor’s boast of creating  jobs through geothermal energy and other alternative fuels is incongruous with his policies regarding other sectors of the state’s economy.

“The governor’s green energy program sounds hollow to me when he at the same time has been such a problem to the oil and gas industry, where there are thousands of jobs at risk,” said Lundberg.

Lundberg said he and his wife have been living “off the grid” for over a dozen years in a home that they built with energy conservation in mind.  The home is completely solar and is built partially underground to take advantage of the earth’s natural warmth.

“It’s a great way to live.  I love the fact that my house is totally self-sustaining, and it’s a technology that I’ve been intrigued with ever since I was in college,” said Lundberg.

Yet, Lundberg said he doesn’t think the government should be involved in artificially propping up the alternative-energy industry prematurely through stimulus dollars and other subsidies on a project such as the geothermal conversion at the Capitol.

“I’m a real skeptic when it comes to government subsidies and tax credits and mandates,” said Lundberg, who says he built his home without any help from the government. He said energy policy be guided by the marketplace.

Lundberg maintains he is a fan of the science behind the project and is confident in the future of viable energy technologies—if the industry is allowed to flourish on a more market-driven timetable.

“I’m a strong believer in the potential of alternative energy. I just don’t want to do it on the backs of the taxpayer,” said Lundberg. “It’s a good step forward, but it’s better for the market to decide when it makes sense.”

“Thank you to the federal government for supporting Colorado communities,” Ritter said in touting the development.

The federal grant money, $1.28 million in all, will go toward helping targeted communities revitalize their downtown business districts through renovating historic buildings and improving downtown walkways.  The revitalization is part of a larger goal set forth last April with the launch of the “Sustainable Main Streets Initiative,” led by Ritter, Lt. Gov. Barbara O’Brien and Susan Kirkpatrick, executive director of the Colorado Department of Local Affairs.

The initiative, created by executive order, directs “state agencies to identify and target specific resources to support community projects, ranging from increasing disaster-readiness plans to improving energy,” as stated in April’s announcement from the governor’s office.

The four communities initially selected for the initiative are the Five Points neighborhood, Rifle on the Western Slope, Monte Vista in the San Luis Valley and Fowler in southeastern Colorado.

Ritter said he believes the federal dollars will play a vital role in propelling the communities toward sustainability.

“Vibrant downtown business districts are the mark of successful communities,” said Ritter. “These funds will help Colorado communities improve their central business districts and create a brighter and more sustainable future.”

The GOP’s Rep. Laura Bradford, of Collbran, who serves on the House Local Government Committee and is a small-business owner in a small community, said downtown business districts are indeed vital to the health of a community, but she questioned using federal dollars to subsidize the effort.

“While (these) are admirable projects, someday, somewhere, someone at sometime needs to say ‘no’ to any more ‘free’ money from the feds. Count me as one of those people,” said Bradford.

The grant funding is from the U.S. Department of Housing and Urban Development and the Department of Transportation. In addition to the $1.28 million, also announced today was $2.9 million from HUD for housing and transportation development in communities surrounding the West Corridor Light Rail line and the award of two grants, each worth $175,000, by the Environmental Protection Agency to address work in areas that have been affected by contaminants.

Assistant Senate Minority Leader Greg Brophy, R-Wray, outlines the key points of the plan in a YouTube video titled “Reform,” promoted in a news release from Senate Republicans.

“This reform package will identify and budget to the core functions of government, control spending and reduce Colorado’s dependence on Washington,” says Brophy.

Sen. Kevin Lundberg, R-Berthoud, said that there is no time like the present to address the budget crisis that has beset Colorado in recent years culminating in a projected $1.1 billion shortfall for next year’s budget.

“It is time we thoroughly audited the functions of government. We can no longer afford to jeopardize vital services in order to meet the Democrats’ political agenda,” said Lundberg.

The effort was dismissed, however, by ruling Democrats, who pointed to legislation they authored that they say already ensures government efficiency and accountability.

“Where was Sen. Lundberg last year when we passed HB 1119?” said Democratic Senate President Brandon Shaffer, of Longmont.

Dubbed SMART–for the State Measurement for Accountable, Responsive and Transparent Government Act–House Bill 1119 mandates that every department of state government be audited and required to set certain goals.  Annual reports to the legislature are also required.

“You can’t say one thing and vote a different way,” said Shaffer. “This bill guarantees that we focus on the core functions that matter to Coloradans, including safety, schools, roads and health care.  This was a good bill that Sen. Lundberg opposed. It’s time for more concrete policy ideas and fewer talking points from the Republicans.”

Democratic Majority Leader John Morse, of Colorado Springs, also responded, lambasting the GOP’s plan as too little too late.

“We tried to do that in the fiscal stability commission last year (identify the core functions) and the Republicans, both elected officials and citizens, absolutely, categorically, refused to engage in the process,” said Morse.

Morse said the Republican plan is not in touch with reality.

“Stop with the mindless rhetoric and start with ‘which do you want to close?  Schools? Prisons? Universities?” Morse said. ” (Republicans are) not willing to talk about how do we increase revenue as we move forward. This rhetoric is just absolute nonsense. We understand that government provides services that are life and death to a community that the market just simply cannot or will not provide.”

Brophy, in return, said he has a question for Morse.

“Just what additional taxes are you going to increase?” said Brophy. “The fact is they have increased fees and taxes and kicked the can down the road, leaving us a billion dollars too short. In case they forgot, they have more votes than us and have ignored our ideas.”

The GOP’s Agenda to Reform and Restrain Government would:

• Identify and budget to core functions of government, phasing out nonessential programs, reducing cost, size and complexity of government;

• Limit year-to-year government operations spending increases;

• Stop rubber-stamping of departmental spending increases;

• Require a two-thirds vote in each legislative chamber to extend legislation that otherwise would sunset;

• Restrain unsustainable entitlement spending;

• Reverse Gov. Bill Ritter’s policy of relying on uncertain sources of federal funding;

• Reduce state government payroll to private-sector levels;

• Institute a state hiring freeze until budget challenges are met;

• Create a meaningful rainy-day fund for the state budget.

Those benefitting from the federal stimulus dollars include police officers, firemen and paramedics in Adams County and at Denver International Airport.  The financial windfall, announced by Gov. Bill Ritter on Monday, will be given to the Adams County Communications Center for the enhanced web access. Ritter praised the federal gesture, saying the money will increase safety in Adams County.

“The Recovery Act is helping emergency responders to use advanced communications technology to improve response times and overall public safety across Adams County, nearby communities and at DIA,” said Ritter.

The Adams County Communications Center project will use the money to build out a 4G cellular data network for emergency responders. Also benefitting will be 911 call centers, municipal governments, and school districts in Adams and Jefferson counties, Commerce City, Brighton, Thornton, Northglenn and several nearby unincorporated areas.

The total cost for the program is $18 million. Bridging the gap between the federal dollars and the total cost is $5.9 million provided by the Adams County E-911 Emergency Telephone Authority, and Denver International Airport, which have provided fiber optic cable, broadcast towers and staffing.

Rep. Ed Casso, D-Commerce City, said today that the faster connection will be a boon to his district, particularly to the rural areas, but he is somewhat wary of relying too much on federal money.

“We need to be careful anytime we’re using stimulus money because the money will dry up, but it’s a great first step in expanding the wireless footprint,” said Casso. “Many parts of Adams County are unincorporated or rural, and extending this to them as well is a real good thing.”

The $12.1 million award came from the U.S. Department of Commerce’s National Telecommunication and Information Administration.  According to the governor’s office, Colorado has secured more than $130 million in Recovery Act funds to date for improved access to high-speed Internet.  Colorado expects to receive at least $7.3 billion from the Recovery Act across more than 200 programs.

After an hour and a half of discussion, Kopp said he heard them loud and clear.

“They said they need certainty.  If they’re going to invest in their businesses, it all comes down to that,” said Kopp.

Kopp said he’s been canvassing his district’s business community to find out what they want done at the legislature.

“I’m trying to understand the side of the people who want to be productive in this economy,” said Kopp of the event.

One of those people is Paul Nighswonger, of  Lakewood, who owns a successful landscaping business.  He told the senator that he just wants to know how his bottom line is going to be affected by state policies, and he said he wants the freedom to grow his business without paying a price.

“I’m here because I’m a frustrated business owner,” said Nighswonger. “When I try to play by the rules, they change them every five minutes. I’m afraid to grow anymore because if I get too big, I’ll pay for it–in fees and in health care.  It’s frustrating.”

Nighswonger said he wants the government to use what he contributes wisely, and he wants elected officials to be more responsive to the people.

“I pay state tax, I pay federal tax, I pay unemployment tax, I pay fee taxes. It’s tax, tax, tax, tax, and yet we keep coming up short in the budget.  This isn’t working,” said Nighswonger.  “I have to live under a budget, why can’t they?  We can’t do anything until we give the power back to the people.”

Also attending was another Jeffco Republican lawmaker, Rep. Jim Kerr, of Littleton, who echoed Kopp’s focus on lending an ear to business owners.

“We are representatives of the people. We’re part of the checks and balances,” said Kerr. “He understands that the business of Colorado is business–not government.”

Democatic Rep. Sara Gagliardi, of Arvada, says she and her party are looking out for Colorado businesses as well, with a focus on job creation.

“We’re very supportive of businesses,” said Gagliardi. “I’m all about small businesses.” She noted that in July she was on hand along with Democratic Gov. Bill Ritter to present an award to an Arvada small-business owner whose fly-fishing shop has been recognized industry-wide for its success.

Gagliardi said that what she is hearing on the ground is that people want jobs and that jobs are a policy priority for her and her caucus.

“We are working very hard at jobs. We’re bringing more and more jobs to Colorado,” said Gagliardi. “We’re doing everything we can to get people back to work in a good-paying job.”

Meanwhile, Kopp told constituents at the tavern that he has a plan to help businesses grow in Colorado: having the government step aside and use its tax dollars more wisely. He said he wants to bring back certainty in regulation and tax policy.

“If we can reduce the cost of government, we can reduce the tax burden on businesses in the state of Colorado,” said Kopp, who said he plans on having the legislature revisit his “blueprint” bill for greater efficiencies in government that was turned down by ruing Democrats last session.  The measure would identify the core functions of government and eliminate superfluous expenditures.

Also included in what he and his caucus have dubbed “a business recovery package” are eliminating the business personal property tax, reversing the so-called “dirty dozen”–a package of tax exemptions and credits that were suspended or eliminated by ruling Democrats in 2010–and reversing the trend toward fees that Republicans are calling taxes.

“The business personal property tax is at the top of the list. If you’re looking for a bad way to tax businesses, you would call it the business personal property tax,” said Kopp.  “The Democrats have made the argument that Colorado is a low-tax state and they’re right, but it’s an open question as to whether we are on our way to becoming a higher-tax state.”

Nighswanger said if lawmakers want to help small business in Colorado, the formula is simple.

“I want them to empower the businessman and free us up,” he said.

Gov. Bill Ritter announced this week that in order to fill the $60 million hole in the state budget created by the lower payments from the feds, he will reduce spending by $6.2 million, with the remaining $53.4 million coming out of various cash funds–funds collected and intended for specific uses—as well as the anticipated revenue from fees on medical marijuana licenses.

Ritter said the revised budget will maintain the status quo while keeping Colorado on track for economic recovery.

“We are preserving essential services, protecting the safety net, minimizing pain and requiring shared sacrifices and shared solutions from everyone,” Ritter said. “This is a responsible plan that continues to position Colorado for a healthy and sustainable recovery.”

However, Senate Republicans issued a statement chiding the governor’s latest budget plan and calling for “new priorities in state spending and less reliance on federal dollars” in addressing the state’s budget shortfall.  Senate Republican Minority Leader Mike Kopp, of Littleton, said relying on money from the feds is not good financial planning and sets the state up for a fall when the federal funding falls short or runs dry, as it did this time.

“The Democrats’ partnership with Washington is not working for Colorado taxpayers,” said Kopp. “Colorado businesses and families cannot afford any more financial burdens because Democrats in the state legislature and Gov. Ritter speculated on federal funding and guessed wrong.”

Kopp said reliance on cash funds and anticipated revenue is not sustainable into the future.

“It is time we created real priorities in the state budget and stopped the budgeting gimmicks that have plagued the budget setting of the majority party,” said Kopp.