|
Campaign Updates>
Penry Praised for Fiscal Responsibility and Leader
April 15, 2006
Penry Praised for Fiscal Responsibility and Leadership
House Republican Leader Mike May, R-Parker, praised state
Rep. Josh Penry, R-Grand Junction, for his integral role in
a compromise package announced today to create a Rainy Day
Fund to help stabilize Colorado’s long-term budget.
“Josh’s leadership on this important issue has been vital
in securing the current compromise that has been negotiated
to protect taxpayer dollars and stabilize our budget," May
said. "He has worked diligently to put Colorado on a more
stable track for the future by practicing fiscally
responsibility, and his efforts are greatly appreciated."
Originally, Penry was one of five sponsors in the House
proposing a budget stabilization fund. He also advocated
for a Rainy Day Fund last year.
Under the compromise, two bills will move forward in the
legislative process. Penry's proposal, which will also be
sponsored by state Rep. Cory Gardner, R-Yuma, would
partially securitize Colorado’s Tobacco Master Settlement
Agreement. The transaction would generate between $600 and
$700 million, $350 million of which would be used for a
Rainy Day Fund.
Under this measure, Colorado would continue to receive $80
million each year to fund presently-authorized health
programs. The remaining securitization money would be used
to pay off state debt. Interest from the Rainy Day Fund
would be used for capital construction and maintenance for
Colorado's colleges and universities.
“We have a unique opportunity to use this period of
economic prosperity to allow Colorado to pay off its credit
card bills and establish significant savings for the
future," Penry said. "If we had practiced this type of
fiscal responsibility in the past, there never would have
been a Referendum C. This Rainy Day Fund proposal would
spare Colorado taxpayers from ever having a Referendum C
again."
Referendum C was approved by the voters in November to
allow the state to keep revenue above the limit established
by the Taxpayer's Bill of Rights. Current estimates show
that Referendum C will allow the state to keep an
additional $4.2 billion of taxpayer money.
Another proposal by state Rep. Dale Hall, R-Greeley, and
state Rep. Bernie Buescher, D-Grand Junction, would create
the Rainy Day Fund and establish guidelines for its use.
Under the proposal, the fund could only be used during a
budget shortfall when the state's revenue intake does not
increase by four percent over the previous year's spending.
Even when this trigger is met, the fund could only be used
with a 2/3 vote of the legislature and the signature of the
governor on a separate bill authorizing the fund's use, and
only to bring the revenue closer to the four percent level.
The Penry/Gardner bill will be introduced today, and heard
later this week in the House Finance Committee. The
Buescher/Hall bill will be heard today in the committee.
###
|
|
|
