Economy In Focus At Colorado Legislative Session
DENVER (AP) -- Republican House Speaker Frank McNulty said Wednesday his party will not budge in its opposition to eliminating a property tax break for seniors as called for by Democrats and Gov. John Hickenlooper.
Party leaders on both sides called for collaboration to open the 2012 legislative session, but McNulty's remarks highlighted the partisan disagreements that will shape the assembly.
"I'm under no illusion that this session will be easy. In fact, everyone thinks the odds are against us," McNulty said and empathized he believes both parties can cooperate.
Republicans want to find savings by looking at ways to scale back Medicaid rather than doing away with the voter-approved credit that allows homeowners 65 years and older to deduct 50 percent of the first $200,000 of property value on their taxes.
In the past, lawmakers from both parties have suspended it to balance the budget.
McNulty said Wednesday in his opening day speech that state government can't rely on the nearly $100 million senior property tax break to balance the general fund budget, which is expected to be about $7.4 billion. The state is making nearly $700 million in cuts to balance the budget.
McNulty said state government should ease regulations on businesses to grow the economy.
"This precise improvement will not come by the raising of barriers and creation of obstacles, but rather by the pragmatic work of clearing the way so that small businesses can flourish and working families can prosper," he said.
Despite their calls to work together, lawmakers appear headed for a gridlock on the property tax exemption and Medicaid.
Democratic House Leader Mark Ferrandino said in his speech that the Republicans' idea to scale back Medicaid is not feasible. Republicans have said the state should provide a "waiver" from Medicaid but have provided few details on what that waiver would look like.
"Let's stop fantasizing about a magic Medicaid waiver that can make our problems go away," Ferrandino said. "It just does not exist."
He said Democrats will push for tax credits to invest in business startups and give universities money for technology research.
By Ivan Moreno and Kristen Wyatt, AP Writers (© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)
