Senate Bill 273, which would have authorized the state to take $500 million from Pinnacol Assurance to offset $300 million in higher education budget cuts, is off the table.

Today, lawmakers and Gov. Ritter rejected the bill; however, both government branches are stating that alternative reductions must be found because higher education could not take such a drastic cut in state funding.

Among the alternatives being discussed are eliminating some tax exemptions and tax credits, and possibly requiring state employees to take furloughs. The idea of furloughing state employees or cutting their pay, had been considered once before, but been rejected. House Majority Leader Paul Weissmann said five- to 10-day furloughs for non-essential state employees in the next budget year might now be considered.

As @Metro went to press, no specific decisions had been made.

Earlier today, Ritter had worked with the Joint Budget Committee and bipartisan legislators to broker a deal with Pinnacol. After that fell through, Ritter announced that he would no longer negotiate with Pinnacol.

In a statement released to the press, Ritter said, “Members of my staff and I have tried in good faith to reach an agreement with Pinnacol. However, there remain too many unresolved issues and questions for Colorado citizens and Pinnacol shareholders and customers. Therefore, with a budget deadline looming, I have halted negotiations with Pinnacol.”

Both Ritter and legislators said that the possibility of a court battle with Pinnacol meant that there would be no money from Pinnacol for the state this year, anyway.

The other bill involving Pinnacol, Senate Bill 281, is still alive. That bill would put the quasi-governmental agency under state control. The bill also includes a requirement that a study should be conducted regarding the company’s future and whether the state should sell it.

Save Colorado Colleges Day of Education
Meanwhile, plans for a Save Colorado Colleges Day of Education are going forward. The event is scheduled for April 21, 11 a.m. -2 p.m. at the Auraria Athletic Fields. Event organizers hope to draw 5,000 college students and supporters.

Watch @Metro for details as they are made public.

For more information about the budget crisis or to submit a question or comment, go to www.mscd.edu/president/higheredfunding.