When the legislature reconvened on May 26, they returned to a different world. Aside from the face masks and social-distancing requirements, they were faced with very tough decisions framed by a vastly different budget reality, climbing unemployment numbers and a new focus on public health and economic recovery. These issues sound familiar, because they are similar to the challenges many of our organizations are managing.
We had hoped that legislators would share our priority as a business community – to keep Coloradans employed. We thought for sure they would see what we see so clearly – what helps employers right now helps their employees. After three rounds of federal aid and countless conversations with our members, we’ve consistently heard that what our employers need in these trying times is cash and certainty. Unfortunately, the legislature doesn’t appear eager to help on either front.
For every encouraging piece of legislation, there are three or four bills that add additional burdens and costs to business. In a different economy or in isolation, we’d be disappointed by each one of these bills, but today these types of bills are reducing confidence, slowing our return to employment and adding costs that employers cannot cover. Yes, actually further disrupting our ability to do business. Bills that make changes to our workers’ compensation program that have no rationale except driving increases in costs (SB20-216); create a new state tax on small and medium-sized businesses to cover the costs for and expand the state’s reinsurance program (SB20-215); increase unemployment insurance premiums (SB20-207); and establish requirements for sick leave with different terms and conditions than most employers have today (SB20-205).
And now, truly with no discussion or outreach, we were shocked to learn of an intention to roll back tax relief that has been critical for many of our small and medium-sized businesses by eliminating a number of tax cuts in the CARES Act and the Tax Cuts and Jobs Act of 2017. We don’t have details yet but will share them as soon as we do. What we know is that Colorado’s legislature wants to roll back recent tax relief intended to help small businesses and their employees during this trying time. It’s all simply too much.
Money doesn’t grow on trees. And businesses don’t have bottomless pockets. Every tax increase, every rolled-back tax cut, every new fee, every increased cost, every new regulation and every additional burden can contribute to job loss or a slower return to bringing those jobs back. Unfortunately, over just the last three months, more than 517,000 Coloradans have learned firsthand the devastation of losing a job. We are funding legislative proposals at the cost of those Coloradans and their families.
This legislature said they wanted to finish this session with laws that were fast, free and friendly. We said we agree and began working in earnest to do just that with our elected officials. The truth is the legislation being proposed isn’t free to the business community or our employees. And it isn’t friendly.
We understand difficult decisions and the environment in which these decisions are being made today. Employers, too, are grappling with devasting decisions every day – how to keep the lights on, how to maintain their teams and how to approach an unpredictable future.
Make no mistake, we believe Colorado is better positioned than most states for recovery. We have a diverse economy, we have a smart and productive workforce and we have a beautiful environment, but we also have a policy environment that threatens to slow economic recovery and send a hostile message to every employer who might invest in our state. We must stop this and start working together on shared solutions that acknowledge the shared challenges of these times.
We encourage you to contact your legislators immediately to raise your concerns about how their actions will affect your business and your employees. Send a letter to your legislator now.
Kelly Brough is the president and CEO of the Denver Metro Chamber.