Representative Bernie Buescher opened the 2006 legislative session by introducing a bill that would more than double Colorado's emergency cash funds. The bill would set aside money from tax revenues and put it into the state's budget stabilization fund. The goal of State Representatives Bernie Buescher's proposed bill is to stabalize future budgets to protect Colorado's roads, schools, and health care needs in the event of an economic downturn.
Republican representative Josh Penry also supports the bill, he says that the state needs to set aside a very big reserve of probably an upwards of a billion or more so that the next time the economy turns down, Colorado legislatures won't have to come back to the tax payers and ask them for even more of their money.
The passage of Referendum C has sparked a lot of talk among legislators on how to spend the extra money.
Appropriation committee members Penry and Buescher say it's important to take some of the money and invest in the future of Colorado before it's too late. According to Buescher right now the state only has about two weeks of operating capital in case of an emergency. Colorado has 4% statuary reserve and Buescher points out that that's 2 weeks of operating capitol, and that's not nearly enough. The Buescher bill would more than double Colorado's emergency cash funds, and add three more weeks of operating capital bringing the total to 5 weeks in case of an emergency.
Under Referendum C the tabor funds must be distributed equally among secondary education, higher education and health care.
Each receiving a third of the funds.