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Dan Pilcher
CACI Senior Vice President
& Chief Operating Officer
Phone: 303.866.9600
E-Mail:
dpilcher@cochamber.com
Friday, October 30, 2009
Governor Tells CACI Annual Meeting Luncheon That He Will Protect
Business Tax Exemptions and Credits Critical to Businesses
Speaking to about 420 CACI members and guests, Governor Bill
Ritter said that he would protect next year the business tax
exemptions and credits “that you need most” from attempts in the
Colorado General Assembly to end the incentives when it tries to
balance the current fiscal year budget and draft the 2010-2011
budget.
The Governor’s comment, however, was not included in his
prepared speech. Here is the prepared speech, entitled
“Manufacturing, Innovation Keys to Economic Recovery,” from his
press office:
Thank you, CACI, for inviting me to address you all.
Congratulations to Peter O’Connor on his successful term as
Board Chair. And good luck to new chair Tom Flanagan.
Three years ago, I ran for governor because I wanted to serve
the people – including the business people – of Colorado because
we weren’t achieving our full potential as a state. We weren’t
meeting our full promise in key areas like energy development,
education and business development.
So for the past three years we’ve been putting in place a
strategy to transform Colorado …
To make us a leader in education reform, because we need to give
our kids a better shot at succeeding in the toughest economy
since the Great Depression.
To make us a leader in the New Energy Economy, because our
economy, our national security and our environment demand it.
And to create a sustainable, long-term vision for business
development, because our state’s future and our entire quality
of life depend on it.
It’s a strategy that’s connected, comprehensive and
collaborative. It was a good strategy back in 2007 when times
were good. And I’d argue that it’s an even better strategy
today, when times are tough.
And times are tough. Our economy fell off a cliff and we’re all
struggling to climb back up. You’re cutting costs, streamlining
operations and doing more with less. And so is state government.
Since the recession started a year ago, we’ve closed shortfalls
of $1.8 billion. We’ve eliminated hundreds of positions. We’ve
put a hold on salaries for two years. And this morning I
announced four additional unpaid furlough days, bringing the
total to eight.
These have all been tough decisions. But they’ve all been
necessary decisions. Necessary to keep the budget balanced.
Necessary to maintain the safety-net. And we aren’t finished.
Tomorrow, I will announce a plan to close an additional $250
million shortfall, and on November 6 I will submit my Fiscal
Year 10-11 budget proposal.
Government revenues lag a turnaround by about a year. So even
though the economy is starting to stabilize and even recover,
our FY10-11 budget will be worse than this year’s.
And let’s be clear: this isn’t some temporary hiccup or one-time
blip. We’re living in a new economic reality. This is a
long-lasting correction, a massive shift that will require
shared sacrifice on the part of everyone.
But it’s also an opportunity for all of us to be bold, to become
more efficient, to create a New Colorado Partnership that does a
better job linking government with businesses, schools and
colleges.
The only way we’ll get through this is by working together, by
understanding that our successes are connected.
A better education system means smarter students. And that means
a more skilled and competitive workforce. And that means a
healthier economy, more prosperous businesses, and the absolute
best quality of life in the country.
By building a New Colorado Partnership, we can do a better job
educating our kids for sustainable jobs in sustainable
industries that will last far into the future. By building a New
Colorado Partnership, government can strengthen its ties to
businesses. Government can’t do everything in a free-market
system. And it shouldn’t. But especially in tough times like
this, government can help.
Over the past three years, we have. We exempted 30,000
businesses from the Business Personal Property Tax. We
overhauled the tax structure for big businesses. We revived the
Colorado Credit Reserve Program. We created incentives to help
existing companies survive and attract new companies to
Colorado.
But the best thing we can do for business is to improve our
education system. Over the past few years, we’ve launched
revolutionary changes. We’ve expanded pre-school and full-day
kindergarten for thousands of kids. We held the first-ever joint
meeting of the Colorado Commission on Higher Education and the
State Board of Education. We’re creating a continual link
between the beginning of a child’s educational career and the
end. And we’re going to eliminate the CSAP test as we know it.
When you put all this together, what we’ve got is a strategy for
success and a reason for optimism. Colorado’s September
unemployment rate fell .3 percent, to 7 percent, compared with
9.8 percent nationally. We’re almost 3 full points below the
national average.
We’re one of the most business-friendly states in the country.
We’ve got the eighth-lowest corporate income tax rate in the
nation. There’s a reason CNBC and Forbes.com rank us as one of
the best states for business.
And there’s a reason why experts say we’ll be one of the first
states to come out of the downturn. It’s because we have a
diverse economy. It’s because small businesses are the backbone
of our economy. And it’s because we understand the two most
important things that will lead us out of the recession:
manufacturing and innovation.
So we’re creating New Colorado Partnerships and entire economic
ecosystems around our most promising industries … aerospace and
technology and biosciences and energy.
Yesterday, Mayor Hickenlooper and I announced that SMA Solar
Technology of Germany will be opening its first North American
manufacturing facility here in Denver. SMA is the world’s No. 1
maker of solar inverters, and they’re bringing hundreds of new
jobs to Colorado. And they aren’t alone in the New Energy
Economy.
International companies like Vestas, RePower and Siemens are all
coming here because we’re now a global leader in the New Energy
Economy.
We’ve got this entire ecosystem that’s acting like a magnet for
new companies and new jobs. We have the best research corridor
in the world. We have unbelievable natural resources, and we
have one of the most highly-skilled workforces in the country.
One of those resources is natural gas – which is one of the most
important industries in Colorado. It’s also one of the
industries that’s struggling the most across the country.
So I’m working hard to increase demand and create new markets
for natural gas, while also ensuring that energy development
occurs in a responsible, balanced way.
We can have healthy communities and a healthy industry, an
industry that will one day thrive again, in a way that’s
sustainable and compatible with other important economic sectors
like recreation and tourism.
Let me wrap up with this: As I said earlier, we’re living in a
new economic reality … a new reality that’s full of challenges
and opportunities. Just as you all are finding new ways to adapt
and succeed, so must state government. We have a rare
opportunity to transform government into a more effective
partner for every business, every school district and every
college in Colorado.
It will require a new way of thinking, a new commitment to
making government a more nimble and more entrepreneurial partner
... a new commitment to streamlining operations and becoming
more efficient and more innovative.
Your businesses and your families are making tough choices and
creating new directions and new pathways.
So is state government. It started back in 2007 with the GEM
efficiency review. It continued when we consolidated all of our
IT functions.
And we’re going to keep fundamentally re-thinking the way
government does business by modernizing operations and making
greater and greater use of technology.
Today, together, we have a real opportunity to build a
sustainable economic future, to invent a new future for our
children and our grandchildren.
This is what I meant back in 2006 and 2007 when I talked about
the Colorado Promise. And it’s what I mean today when I call for
a New Colorado Partnership.
Thank you.
Citywide’s Tom Flanagan Elected Chair of CACI Board of Directors
for 2009-2010
Tuesday morning at the Annual Business Meeting of the CACI Board
of Directors at the Westin Tabor Center Hotel, Tom Flanagan of
Citywide Banks was elected CACI Board Chair for 2009-2010.
Here’s the content of the CACI press release that went out that
day about Flanagan as well as the election of officers, new
Board members, and current Board members to a succeeding term:
Denver--Longtime banker Tom Flanagan, Division I President,
Citywide Banks, was elected this morning to chair the Board of
Directors of the Colorado Association of Commerce and Industry (CACI),
the state chamber of commerce, for 2009-2010.
“CACI’s top priority this coming legislative session will be to
oppose efforts in the legislature to increase taxes on
businesses to balance the state budget,” Flanagan said, “because
tax increases will harm the ability of companies to keep
existing jobs, let alone create new ones, when our critical goal
should be economic recovery.”
“In addition,” Flanagan said, “CACI will oppose efforts to place
costly, restrictive mandates on employers. It will protect the
workers’ compensation system and the unemployment insurance fund
and work to keep the cost-of-doing-business in Colorado low.”
A six-year member of the CACI Board, Flanagan has also served on
the CACI Executive Committee. A year ago, the Board elected
Flanagan to be the Chair-Elect of the Board.
2008-2009 CACI Board Chair Peter O’Connor, Chief Administrative
Officer and General Counsel, AngloGold Ashanti North America,
became Past Chair. Rob LeVine, General Manager, The Antlers at
Vail, was named Chair-Elect.
A gradate of Boston College, Flanagan holds an MBA from Babson
College. His entire career has been spent in banking, working
first in Massachusetts and California. He moved to Colorado in
1978 and worked for various banks in Fort Collins and Greeley.
In 2002, he joined Citywide Banks.
Flanagan’s community involvement includes the following: Board
President, Arapahoe-Douglas Mental Health Network; Director,
Mental Health America of Colorado; Trustee, Denver Council, Boy
Scouts of America; Director, In Net, Inc.; and Colorado member,
Community Banker’s Council, American Bankers Association.
The CACI Board approved the following new Board Members:
·
Leland Lorentzen, President & CEO, Golden Aluminum
·
Mark Moses, Joint Venture Partner, Colorado, Outback Steakhouse
·
Rich Zahringer, Chief Financial Officer, Rocky Mountain Natural
Meats, Inc.
·
Darrin Henke, Vice President, Business Unit Leader, South
Rockies, EnCana USA
·
Pam Nicholson, Senior Vice President, Strategic Integration,
Centura Health
·
Bill Schuck, President and CEO, The Schuck Corporation
The Board also elected to another three-year term the following
current Board members:
·
John Aragon, Vice President of Government Affairs, Comcast
-
Jonathan Coors, Director, Government Affairs, CoorsTek
-
Alan Feldkamp, Executive Director, Colorado Operations,
Space and Intelligence Systems, Boeing Integrated Defense
Systems
-
Norm Franke, President, Alpine Bank
-
Alan Hurley, Vice President, Infrastructure Practice,
Arcadis G&M Inc.
Finally, the Board elected to one-year terms the following:
·
Chair, CACI Educational Foundation: Ray Johnson, Manager,
Community Relations and Public Affairs, IBM
·
Representing the Colorado Chamber of Commerce Executives, a CACI
affiliate: Amy Sherman, President and Chief Executive Officer,
West Chamber Serving Jefferson County
Legislature’s Interim Business Personal Property Tax Task Force
Holds Final Meeting Wednesday
At its final meeting, the interim Business Personal Property Tax
Task Force, chaired by Senator Joyce Foster (D-Denver), decided
to send a letter to the interim Long-Term Fiscal Stability
Commission recommending that the Commission address the BPPT in
its proposal.
CACI Vice President of Governmental Affairs Loren Furman
attended the Wednesday meeting and provided the following
report:
Presentation by Joanne Groff (Property Tax Administrator,
Property Tax Division, Colorado Department of Local Affairs):
·
Discussed statutory property exemptions;
·
Discussed the “consumable exemption” on property currently at
$250 or less and potentially increasing the amount to $500. The
Division may consider doing this in 2011 (the 10-year mark);
·
Discussed valuation of property process and studies used.
Cannot look to one federal depreciation schedule since there are
multiple IRS depreciation schedules; and
·
Discussed Division’s efforts to improve depreciation schedules
and told the Task Force that she would like to continue to have
the statutory authority to make improvements to the depreciation
schedules to speed up the depreciation process. Such changes
should benefit taxpayers.
Presentation by Tom Clark, Executive Vice President, Metro
Denver Economic Development Corporation
·
Discussed the economic development benefits to Colorado created
through the passage of the single-sales-factor bill in 2008 and
HB-1001, the jobs creation tax incentive, in 2009;
·
Clark told the Task Force that the BPPT is a bad tax but that
the Task Force should “leave BPPTax alone” and “keep it as is”
until the economy recovers; and
·
Clark responded to questions and shared his thoughts on the
Colorado’s fiscal problems and current tax exemptions.
Other Task Force Discussion
Senator Rollie Heath (D-Boulder) said that the interim Long-Term
Fiscal Stability Commission will be offering a proposal that the
State’s fiscal problems to be studied by the University of
Denver and suggested this proposal could also include studying
the BPPT;
Senator Mark Scheffel (R-Parker) and Representative Kevin Priola
(R-Henderson) offered up BPPT legislative proposals including:
(1) increasing the current $7,000 exemption; (2) launching a
pilot project of five counties phasing out the BPPT for five
years and studying the result; and (3) streamlining the tax
collection/remittance process. Senator Suzanne Williams
(D-Aurora) expressed support for increasing the exemption.
(Under current law, only a firm that has business personal
property that is valued at $7,000 or less qualifies for the
exemption. If the business personal property is valued at more
than $7,000, then the firm does not qualify for the exemption.)
Senator Joyce Foster (D-Denver), who chaired the Task Force,
suggested that the Long-Term Fiscal Stability Commission
consider including in its proposal making the $7,000 exemption a
true exemption and shared her thoughts on the importance of
helping small businesses with any BPPT solution
Interim Long-Term Fiscal Stability Commission to Meet Next Week
The legislature’s interim Long-Term Fiscal Stability Commission,
chaired by Senator Rollie Heath (D-Boulder) will meet from 9
a.m. to 5 p.m. on Wednesday and (if necessary) Thursday,
November 5th and 6th, in Room 112 at the
State Capitol. This will be the final meeting of the
Commission, and its agenda focuses on seven draft bills. For
more on the Commission and its agenda, click on:
http://www.colorado.gov/cs/Satellite?c=Page&cid=1244121596423&pagename=CGA-LegislativeCouncil%2FCLCLayout
State Legislators’ Site Visit to Roche Colorado in Boulder
Postponed by Snowstorm
Today’s site visit by three state legislators to CACI member
Roche Colorado Corp. in Boulder to acquaint them with
the concerns of the company pertaining to state laws and
regulations as well as legislation
that the Colorado General Assembly will take up in January when
it convenes has been postponed by the snowstorm. The visit will
be rescheduled.
Three legislators—Senator Betty Boyd (D-Lakewood),
Representative Dickey Lee Hullinghorst (D-Boulder) and
Representative Jim Riesberg (D-Greeley—were scheduled to visit
Roche Colorado Corp.
Earlier this month, CACI conducted two site visits:
·
Micro-Motion, Boulder, October 12th, attended by Senate
President Brandon Shaffer (D-Longmont), Representative
Hullinghorst, Senator Rollie Heath (D-Boulder) and
Representative Claire Levy (D-Boulder).
·
Ice-O-Matic, Denver, October 13th, attended by Senator Michael
Johnston (D-Denver).
Previous visits, beginning in August, included the following:
·
Anheuser-Busch, Fort Collins, attended by Senate President
Brandon Shaffer (D-Longmont), Representative Kevin Lundberg
(R-Berthoud) and Representative Brian DelGrosso (R-Loveland).
·
Rocky Mountain Natural Meats, Henderson, attended by
Representatives Kevin Priola (R-Henderson, Rep. Ed Vigil (D-Fort
Garland)) and Frank McNulty (R-Highlands Ranch).
·
Quest Diagnostics, Denver, attended by Representative Mark
Ferrandino (D-Denver), Representative Joel Judd (D-Denver) and
Cody Belzley, Senior Policy Analyst for Health-Care, Governor’s
Office.
·
AngloGold Ashanti North America gold mine at Cripple
Creek-Victor, attended by Representative Bob Gardner (R-Colorado
Springs) and Senator Mark Scheffel (R-Parker).
Loren Furman, CACI Vice President of Governmental Affairs,
initiated and organized the site visits. CACI members who want
more information about the site visits should contact Loren at
303.866.9642 or via e-mail at
lfurman@COchamber.com
Department Chief to Address CACI HealthCare Council on November
12th
Joan Henneberry,
Executive Director of the Colorado Department of Health Care
Policy and Financing, will speak to the CACI HealthCare Council
at a meeting at the CACI Office, 10 a.m.—12 Noon, Thursday,
November 12th.
http://www.colorado.gov/hcpf
CACI Vice President of Governmental Affairs Loren Furman also
has invited several heads of other state departments to address
CACI Councils in the upcoming weeks:
Energy and Environment Council,
10 a.m.--12 Noon, Tuesday, November 10th. Mike
King, Executive Director of the Colorado Department of
Natural Resources (DNR), will present the DNR legislative agenda
and hear the concerns of the Council’s members. In addition,
three staff members (Martha Rudolph, Paul Tourangeau and Gary
Baughman) of the Colorado Department of Public Health and
Environment (CDPHE) will address the CDPHE agenda for the
upcoming legislative session and discuss issues of concern with
the Council’s members.
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
speaker will be Roxy Huber, Executive Director of the
Colorado Department of Revenue (DOR), who will review her
Department’s legislative agenda and discuss CACI members’
concerns about regulations and legislation.
Senate Democrats Reshuffle Committee Lineups for 2010 Season
On Wednesday, the Senate Democrats announced committee
assignments for the upcoming legislative session, which begins
Wednesday, January 13th.
Agriculture, Livestock & Natural Resource
Chair: Senator Mary Hodge (Brighton)
Vice-Chair: Senator Bruce Whitehead (Hesperus)
Members: Senators Dan Gibbs (Silverthorne) and Gail Schwartz
(Snowmass Village)
Appropriations
Chair: Senator Abel Tapia (Pueblo)
Vice-Chair: Senator Chris Romer (Denver)
Members: Senators Bob Bacon (Fort Collins), Rollie Heath
(Boulder), Mary Hodge (Brighton) and Moe Keller (Wheat Ridge)
Business, Labor and Technology
Chair: Senator Lois Tochtrop (Thornton)
Vice-Chair: Senator Suzanne Williams (Aurora)
Members: Senators Joyce Foster (Denver) and Michael Johnston
(Denver)
Education
Chair: Senator Bob Bacon (Fort Collins)
Vice-Chair: Senator Evie Hudak (Westminster)
Members: Senators Michael Johnston (Denver), Rollie Heath
(Boulder) and Pat Steadman (Denver)
Finance
Chair: Senator Paula Sandoval (Denver)
Vice-Chair: Senator Michael Johnston (Denver)
Members: Senators Evie Hudak (Westminster) and Pat Steadman
(Denver)
Health and Human Services
Chair: Senator Betty Boyd (Lakewood)
Vice-Chair: Senator Linda Newell (Littleton)
Members: Senators Morgan Carroll (Aurora) and Paula Sandoval
(Denver)
Judiciary
Chair: Senator Morgan Carroll (Aurora)
Vice-Chair: Senator Pat Steadman (Denver)
Members: Senators Linda Newell (Littleton) and Evie Hudak
(Westminster)
Local Government & Energy
Chair: Senator Gail Schwartz (Snowmass Village))
Vice-Chair: Senator Joyce Foster (Denver)
Members: Senators Mary Hodge (Brighton) and Linda Newell
(Littleton)
Transportation
Chair: Senator Dan Gibbs (Silverthorne)
Vice-Chair: Senator Suzanne Williams (Aurora)
Members: Senators Bruce Whitehead (Hesperus) and Lois Tochtrop
(Wheat Ridge)
Joint Budget Committee
Vice-Chair: Senator Moe Keller (Wheat Ridge)
Members: Senator Abel Tapia (Pueblo)
Executive Committee of Legislative Council:
Chair: President Brandon Shaffer (Longmont)
Members: Senator John Morse (Colorado Springs)
Legal Services
Chair: Senator John Morse (Colorado Springs)
Vice-Chair: Senator Gail Schwartz (Snowmass Village)
Members: Senator Morgan Carroll (Aurora) |
