Businesses, needing little, favor hands-off approach

DENVER - Business leaders have one request for the Legislature this session: Leave us alone.

Industry and small-business advocates argue there is little they need from the state in terms of tax breaks or infrastructure assistance. But many worry that majority Democrats could pass legislation that opens the door for trial lawyers to be more litigious or imposes stricter environmental regulations on companies.

That fear of an anti-business climate comes two months after Democratic Gov. Bill Ritter signed an executive order giving state employee unions more power to negotiate with department heads, a move commerce leaders said could have negative repercussions. But it also comes just 3½ months after Ritter announced his economic-development proposals for 2008.

Those seemingly contradictory actions have left some people on edge, business representatives said.

“I think there’s apprehension in the business community,” said Chuck Berry, president of the Colorado Association of Commerce and Industry. “What I’m hearing from my members is: ‘Leave us alone this year.’”

Business leaders gave Ritter and the Legislature mixed grades in 2007 after the governor vetoed a bill that would have made it easier for unions to organize in the private sector but signed another that made it easier for homeowners to sue over construction defects. This year, several said, they’re not sure what’s coming.

Ritter’s economic-development proposal for 2008 included several measures that have been hailed by people such as Tony Gagliardi, state director for the National Federation of Independent Businesses. Those involve resurrecting a proposal to exempt all businesses owning $7,000 or less of business personal property from paying those property taxes and introducing a plan to simplify state corporate income taxes.

In addition to tort reform and environmental measures, business owners have said they fear some of the proposals that have been discussed to increase health care coverage because they could be funded by leveraging a payroll tax or by mandating that businesses offer insurance.

Ninety-three percent of respondents in a recent NFIB survey opposed a payroll tax, Gagliardi noted.

And though Ritter’s executive order does not directly affect private businesses, it has created a lot of uncertainty. Gagliardi said there is fear that state contracts might soon contain provisions favoring union shops over nonunion businesses, and Berry noted any strike attempts by state workers could shut down major portions of the state’s economy.

So, both conceded, 2008 is likely to be a year where business leaders play a lot more defense than offense when it comes to bills.

“I think there’s always going to be a certain amount of defense, looking at the power structure right now,” Gagliardi said.

Democratic leaders are quick to say, however, that they think both passed and proposed measures can benefit businesses in other ways.

Senate President Peter Groff, D-Denver, said that a soon-to-be-introduced bill that would establish a $3.5 million fund to help the state’s bioscience industry will generate economic development in Colorado.

House Speaker Andrew Romanoff, meanwhile, said the push to increase renewable energy usage is creating a whole new economic niche.

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

THE SERIES

The Gazette looks this week at major issues facing the Legislature in 2008:

Monday: Health care

Tuesday: Transportation

Wednesday: Education

Today: Business issues

Friday: Environmental issues

Saturday: Constitutional questions

Sunday: Overview of the session