Category: Business, Military, Panorama, Politics
Posted: January 21, 2010 10:50 AM
Though business leaders and a special committee rejected the idea several months ago, Governor Bill Ritter's office continues to look into the possibility of privatizing Pinnacol Assurance
, the state's workers' compensation fund.
While there are questions about the legality of such an endeavor, it could mean hundreds of millions of dollars into Colorado's budget, which is facing a shortfall of at least $1.3 billion for the fiscal year that starts on July 1, writes The Denver Post.
"We've been talking
to Pinnacol for a long time, informally, really since last session," confirms Trey Rogers, Ritter's chief legal counsel, adding that there have been talks with financial-services firm J.P. Morgan about appraising the insurer.
Pinnacol provides worker's compensation to firms that otherwise cannot get insured; theoretically, any deal would require that it remain the insurer of last resort.
State Senator Morgan Carroll (pictured), an Aurora Democrat, characterizes the governor's talks as secretive: "Something stinks about this when you can't bring your proposal before the public."
Tax-exempt Pinnacol effectively operates as a private business, and its board is opposing several bills in the Legislature, according to the Denver Business Journal