Rainy-day fund bill loses Springs sponsor

DENVER - A Colorado Springs legislator killed his own proposal to double the state’s savings account Tuesday to save a bill that adds new state judges.

Democratic Sen. John Morse had been negotiating for weeks to save House Bill 1302, which would have increased the amount of the general fund budget held in reserve from 4 percent to 8 percent. The so-called “rainy-day fund” would then have been available during economic downturns when the state would otherwise have to cut services.

The rainy-day bill and another measure to add 43 judges, however, were competing for funding from the same source — transportation money — and Republicans had made it clear they would not support both, Morse said. Because the judges bill needs support of two-thirds of the Senate and because more judges are sorely needed, Morse said he agreed to sacrifice his measure.

Rep. Bernie Buescher, D-Grand Junction, the House sponsor of the rainy-day bill, reacted angrily to its indefinite postponement.

“Republicans extracted this pound of flesh in order to vote for the judges bill,” Buescher said. “It’s a devil’s deal.”

Senate Minority Leader Andy McElhany, R-Colorado Springs, denied any deal was made to pass one bill at the expense of the other. The rainyday measure appeared to be failing on its own, and Republicans have come to view the judges bill as needed despite its hit on road funding, he said.

Still, a parade of witnesses spoke for the need for a rainyday fund, an idea that has been around for 15 years. Wade Buchanan of the Bell Policy Center said that the current economic good times make this the best time to start saving money, and Carol Hedges of the Colorado Fiscal Policy Institute said money put into such a fund would make a small dent in transportation needs but would keep a lot of services open if tax revenue dries up.

“The voters will understand and do understand the value of putting a little something away for the bad times, because that’s what most Colorado families do,” Hedges said.

A similar measure to create a fund remains on the table — a proposed constitutional amendment by Yuma Republican Rep. Cory Gardner. But Gardner was pessimistic Tuesday about the future of the bill, which goes before a House committee today.

CONTACT THE WRITER: (303)837-0613 or ed.sealover@gazette.com