A Colorado bill that would have allowed the state to invest enterprise fees and other public money in privately managed investment funds died Wednesday in a committee.
Sponsors of sought to use the potentially higher returns from private investment funds to pay for low-income childcare programs. However, the proposal faced questions about whether it of the Colorado Constitution’s prohibition on the state owning stocks in corporations.
Representatives of Gov. Jared Polis said his office had received a legal opinion from the attorney general’s office giving the OK for this arrangement, but they refused to release it to legislators.
The bill failed on a 1-6 vote in the Senate Appropriations Committee, with only Sen. Barbara Kirkmeyer, a Brighton Republican, voting in favor. That committee does not generally allow public testimony, and its members typically consider only the fiscal effects of a bill. The committee members did not discuss their votes ahead of time Wednesday.
The bill was sponsored by Sen. Janice Marchman, a Loveland Democrat, and Sen. Scott Bright, a Platteville Republican.
Marchman said Wednesday night that the bill “explored a creative funding solution” to help families in need of childcare.
“Given the reality of our state budget, we contemplate bills with innovative funding mechanisms each year — and SB26-180 was no different,” she said. “This was a bipartisan opportunity for us to invest in childcare in a meaningful way without jeopardizing funding for other critical services, and I am disappointed that it is not advancing this year.”
Sen. Byron Pelton, a Sterling Republican who voted against the measure, said earlier Wednesday that he was torn between trying to get money to a struggling childcare program and recognizing the concerns of rural banks worried about cash flow in what could be a devastating drought.
“Banks are going to have to carry (the farmers),” Pelton said.
Colorado Treasurer Dave Young also vehemently opposed the bill. He warned about its constitutionality and the risk that comes with investing state money in private investment vehicles.
