7 p.m. Gov. Ritter will return to his alma mater, Colorado State University, to deliver remarks at the Warner College of Natural Resources commencement. Gov. Ritter's son, August, is graduating from the collegewith a degree in Natural Resource Recreation and Tourism with a concentration in Global Tourism and a double minor in Business Administration and Spanish. The governor earned his undergraduate degree in political science fromColoradoStatein 1978 from theCollegeofLiberal Arts.
Location: CSU campus inFort Collins,LoryStudentCenter, main ballroom, second floor.
Gov.Bill Ritterannounced today he has selected state Rep. Bernie Buescher ofGrand Junctionto serve asColorado's next Secretary of State.
"Bernie Buescher is the perfect person to serve all of the people and all of the businesses ofColoradoas the leader of this important statewide office," Gov. Ritter said. "He will bring a wealth of knowledge and a diversity of legal, legislative and public-service experience to the job. He has led private businesses and government agencies, and he has managed large workforces and multimillion-dollar budgets.
"In addition to his impressive list of accomplishments, Bernie also knows what it takes to govern well," Gov. Ritter said. "He works in a bi-partisan – even a non-partisan -- fashion. He listens to all sides to find common ground. And as a resident ofGrand Junction, he will bring a statewide perspective to a statewide office."
Pending Senate confirmation, Buescher will replace Mike Coffman, who is stepping down midway through his four-year term after being elected to Congress in November. Deputy Secretary of State Bill Hobbs will serve as acting secretary in the interim.
"I am excited about the opportunity to giveColoradovoters confidence that we have the highest-caliber, most transparent and most efficient elections possible," Buescher said. "I am equally excited about working with the business community to improve the ease and utility of the business filing side of the Secretary of State's Office.
"I look forward to working with county clerks, county commissioners, the Governor's Office and the legislature," Buescher added. "I appreciate the expressions of support from friends, colleagues and county clerks, and I am grateful to Gov. Ritter for his confidence in my ability to serve asColorado's next Secretary of State."
About Bernie Buescher:
Family:Married to Mary Beth Buescher, four grown children.
Education:Graduated fromGrand JunctionHigh Schoolin 1967, from the University of Notre Dame in 1971 with a B.B.A in business administration and accounting, and from the University of Colorado Law School in 1974 with a J.D.
Business:President of West Star Aviation Inc., 1987-1996, growing the company from 28 employees to more than 200 and from $3.8 million in annual sales to $34 million.
Government:Executive director of the Colorado Department of Health Care Policy and Financing, April 1997 to March 1998; interim manager of the Colorado State Fair, December 1996 to March 1997; and member of the Colorado Transportation Commission (1994-97) and Colorado Economic Development Council (1991-94).
Legislature:Two terms in the Colorado House of Representatives, January 2005 to January 2009, serving as chairman of the Joint Budget Committee and House Appropriations Committee.
Joined by statewide business leaders and a bipartisan group of lawmakers, Gov.Bill Rittertoday announced his job-creation and economic-development proposals for the upcoming 2009 legislative session, which will:
·Provide tax-credit incentives for companies that create at least 20 new jobs.
·Provide hundreds, possibly thousands, of small and family-owned businesses with immediate access to capital and credit through a Colorado Credit Reserve Program.
·Expand Colorado First workforce training programs at community colleges, particularly for New Energy Economy jobs in renewable energy, energy efficiency and energy conservation.
·Invest in New Energy Economy companies, projects and jobs through the Colorado Clean Energy Fund.
"As we all know, we're experiencing a historic and a global economic crisis," Gov. Ritter said. "We're doing better than many states, but we're not immune and we face steep challenges. People are losing their jobs. Families are struggling. Companies are having trouble getting needed capital or credit to keep their doors open.
"Over the past two years, we've made smart, strategic and aggressive investments to help protectColoradoresidents and retainColoradojobs and businesses," Gov. Ritter added. "Our2008 business-development legislative packageeased the tax burden for tens of thousands of companies, we created a Colorado Jobs Cabinet, and the proposals we are announcing today will build on the progress we have made and create new opportunities.
"These proposals will makeColoradomore competitive for new jobs. They will help small businesses get through this crisis, and they will allow the state to provide a modern workforce for the 21stcentury New Energy Economy."
Business and economic-development organizations supporting the proposals include:
Economic Development Council ofColorado
ColoradoAssociation of Commerce and Industry
ColoradoChapter of the National Federation of Independent Businesses
Northern ColoradoEconomic Development Council
South MetroDenverChamber of Commerce
Colorado SpringsEconomic Development Council
ColoradoHousing and Financing Authority
Independent Bankers ofColorado
Legislators who joined Gov. Ritter at today's news conference or will be sponsoring pieces of the business-development package include Sen. Gail Schwartz, Sen.-elect Rollie Heath, Rep. Joe Rice, Rep. Nancy Todd, Rep. Don Marostica and Rep.-elect Ed Vigil.
Don Elliman, director of the Governor's Office of Economic Development, will present the business-development package to the legislature's Committee on Job Creation and Economic Growth on Monday.
Summaries of the four proposals:
Job Growth Incentive Program:Gov. Ritter is proposing the creation of a new tax-credit program to incentivize businesses to create jobs inColorado. For a company to qualify for this program, the company must apply to the Economic Development Commission and meet specific criteria. The company will be eligible for a tax credit of up to 50 percent of its annual FICA taxes on new employees. The tax credit for new employees would be calculated on a year-to-year basis for five years according to the number of FTEs on the company's payroll at year's end.
ColoradoCredit Reserve Program:Colorado Credit Reserve is a pool guaranty program originally established and administered by the Colorado Housing and Finance Authority. Gov. Ritter is proposing that this program be restored and expanded to generate small business loans throughout the state. The revitalized program is designed to encourage lenders to extend credit amounts up to $500,000 toColoradobusinesses. By committing $2.5 million to this program at a maximum of 2.5 percent per loan (the percentage varies according to loan size), the state could leverage more than $50 million in new loans.
New Energy Jobs Program:Gov. Ritter is proposing to increase funding by $1 million per year to this program, which will be targeted for new energy job training programs. These new funds will be used to create job training programs for new energy jobs and will allow community colleges to apply for cluster-based grants.
Clean Energy Fund:Gov. Ritter is proposing to increase current funding to the Clean Energy Fund by $1.4 million, with priority given to economic development incentives for clean energy companies.
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GovernorBill Ritter, Jr.'s 2009 Business & Economic Development Package
Job Growth Incentive Program
The Colorado Job Growth Incentive Program is a tax-credit proposal designed to incentivize companies to create jobs inColoradoand help level the playing field betweenColoradoand other states competing for new jobs.
This program will be administered within the Colorado Office of Economic Development and International Trade. Specifically, The Economic Development Commission (EDC) will be responsible for making recommendations regarding the types of projects that may apply for this tax credit. To qualify for this tax credit, the EDC will examine a potential project's need for this program and weigh that need in consideration of other incentives being offered by the Office of Economic Development.
For this credit to be granted, the company or program must prove that if not for this credit, the company would not otherwise move to or expand withinColorado. Given this, the tax credit will only come from new revenue to the state. Tax credits will not be given until the qualifications below have been met and new revenues have already entered and have been flowing through the state.
·Projects must encourage, promote and stimulate economic development in key economic sectors including, but not limited to: aerospace, bio/life sciences, clean energy technology, and information technology;
·The company must commit to bringing at least 20 new jobs with an average wage of at least 110% of the most current county wage; or
·The company must meet other job creation or retention standards as set forth by the EDC.
Any company applying for the creditMUSTdemonstrate that if not for this program, the project would not occur inColorado. The company may satisfy this requirement through the submission of legitimate records evidencing that:
1)The company has multi-state location options and could reasonably and efficiently locate outside of the state; or
2)At least one other state is being considered for the project; or
3)Receipt of this tax credit is a major factor in the company's decision and that, without this credit, the company likely would not create and/or retain jobs inColorado.
As part of this process, the company should identify the cost differential, using the best available data, in the expected costs for the company's project compared to the expected costs in the competing state (including the impact of the competing state's incentive programs). The cost differential could, for example, demonstrate the following:
1)Specific costs of labor, utilities, taxes and other costs of an out-of-state site or the industry's cost structure in the competing region; or
2)Specific cost differential due to the impact of a competing state's incentive programs.
Before awarding this tax credit, the EDC must conclude that if not for this tax credit the applicant would not relocate (or expand) toColorado.
The amount of the tax credit will be calculated on a case-by-case basis according to the company's future Federal Insurance Contributions Act (FICA) taxes.The company will be eligible to receive a tax credit up to 50% of their annual FICA taxes on new FTEs. FICA taxes are ONLY used to calculate the amount of the tax credit – the credit itself must only be used to pay down the company's state corporate income tax liability. The tax credit will be calculated on a year-to-year basis, based on the number of FTEs created in a specified year. A qualifying company will be eligible to claim once a year for five years.
Each annual credit will be calculated according to the number of FTEs on the company's payroll at the end of the fiscal year. These full-time jobs must be created for one full calendar year before they can be eligible for the tax credit.
No credits will be given if the above listed qualifications have not been met. This program requires that new revenue be created within the state before any tax credit is granted.
TheColoradoCredit Reserve Program
A Capital Access Program (CAP) is a method of increasing the availability of credit to small businesses in a cost-efficient way. There are currently 20 states that utilize some form of CAP. The system is based on a concept of leveraging funds between the borrower and the state, each contributing a percentage of the loan amount into a reserve fund located at the lender's bank.
The Colorado Credit Reserve (CCR) is a capital access program originally established and administered by Colorado Housing and Finance Authority (CHFA) under contract from the Colorado Office of Economic Development and International Trade (OEDIT). This program, which was put on hold in 2006 due to a lack of available funding, was able to utilize $850,000 over a 10-year period to leverage over $24 million in small business loans.
In response to the current economic climate, the Governor's Office, in partnership with CHFA and OEDIT, is proposing to revive and expand the Colorado Credit Reserve Program as a way to generate small business loans throughout the state. This revitalized program will be designed to encourage lenders located in the state ofColorado("Lenders") to extend credit in amounts up to $500,000 toColoradobusinesses. The program will also provide additional reserve funds for loans made to Colorado businesses owned by women or minorities and for loans to Colorado businesses whose principal place of business or location is within a State of Colorado designated Enterprise Zone.
All terms, fees, conditions, rates and collateral is agreed upon in a private transaction between the borrower and the lender. Registration fees collected from the borrower and matched by CCR funds will be deposited into an account at the originating Lender and owned by the Program Manager (CHFA).
The Program Manager will be permitted to use the funds only in accordance with an Agreement between the Program Manager and the participating Lender (the "CCR Agreement"). A separate reserve account is established with each participating Lender. Fees collected for loans registered in the program by that Lender will be deposited into the same account. Loan losses from loans registered in the program ("Registered Loans") are recovered from the account.
Registration fees paid by the borrower can be financed as part of the loan. The borrower fee of one and one-half percent of the loan balance will be deposited into the reserve account. The Program Manager will then deposit a fee, which will be based on the loan size, with an additional incentive for minority or women owned businesses or businesses located in Enterprise Zones. If Registered Loans pay off without a loss, the funds remain in the reserve. If the Lender does not continue its participation in the program and has no registered loans outstanding, fifty percent of the reserve funds are returned to the state.
The Governor's Office is proposing the use of $5.0M in general funds to be deposited into this program ($2.5M in FY09-10 and in FY10-11). Funds will be allocated to OEDIT, which will then contract with CHFA for the administration of this program.
New Energy Jobs Program
During the last recession, the General Assembly cut funding to the Colorado First and Existing Industry Program from $4.0 million to $2.7 million. The Governor's Office is proposing legislation that will:
·Permanently increase funding by $1 million, targeting these new funds for new energy job training; and
·Allow for the creation of cluster-based grants, wherein a community college, partnering with two or more local businesses, will apply for funding to create a broad-based training program that can be used across an industry cluster.
The Colorado First and Existing Industry Programs are jointly administered by the Colorado Office of Economic Development & International Trade (OEDIT) and the Colorado Community College System (CCCS).
·Colorado Firstgrants are for companies that are relocating toColoradoor for existing companies that are beginning a major expansion.
·Existing Industrygrants are designed forColoradocompanies that are implementing new technology to remain competitive and keep jobs inColorado. Approved training is for transferable job skills that support both the company's economic competitiveness by re-training its workers in new skills, while enhancing the workers' resumes and overall long-term employment opportunities.
These programs are funded through the General Fund. Individual businesses must apply directly to the Office of Economic Development and International Trade (OEDIT).
All grant applications for both programs must meet the following criteria:
·Maximum grant award of $800 per employee.
·Grant funded training must be for permanent, full-time, non-seasonal, non-retail positions in the state ofColorado, which have significant career opportunities and require substantive instruction.
·Grants will only be awarded to companies that meet a sustainable wage threshold.
·Applicant companies must pay for a minimum of 40% of the total training costs.
·A financial evaluation of the applicant company is required (Existing Industry applications only)
·An on-site visit of the applicant company is required.
Clean Energy Fund
A budget supplemental will create a one-time increase in current funding to the Clean Energy Fund by $1.4 million dollars beginning in fiscal year 09-10. This new money will be targeted towards economic development incentives for clean energy companies around the state. Due to projected lack of funds, this supplemental will revitalize the economic development incentive program.
The 2007 Colorado Legislature provided funding to the GEO for the purpose of creating the Clean Energy Fund. The Clean Energy Fund provides revenue to advance energy efficiency and renewable energy throughout the state ofColoradothrough their grant programs.
Anticipated revenues for 2009 have dropped from $8.0 million to below $4.0 million. As a result, programmatic funding and economic development grants were reduced for the 2008-09 year. Current estimates indicate that there is just over $5.0 million for the 2009-10 year; however, gaming revenue returns are significantly lower than projected and those numbers are likely to be adjusted downward.
In an effort to ensure that the investments for the New Energy Economy continue, Governor Ritter has proposed that $1.4 million of General Fund revenues be dedicated to economic development for renewable energy and energy efficiency businesses. Any gaming revenues received may then be reserved for programmatic funding in communities throughoutColorado.
In 2007-08, businesses and organizations aroundColoradoreceived New Energy Economy Development Grants over $1.0 million.
·Primestar Solar, Golden - pilot thin-film solar manufacturing facility;
·Zolo Technologies,Boulder- increasing efficiency of coal fired power plants;
·CostillaCounty, San Luis - Community Owned Biodiesel production facility;
·Community Energy Systems - MonteVista: installing biomass heating systems in veterans' homes;
·Powerhouse Enterprises - Rifle: Green modular housing company; and
·Mountain Parks Electric -Granby: Biomass heating at utility headquarters.
Additionally, funding was used to attract both Vestas and Siemens to locate inColorado, which led to a workforce investment of over 2,500 jobs. FortZedwas also funded to create a downtown Fort Collins Zero Energy District with $250,000 of economic development funds which was matched by over $5.0 million in Federal investment.
Gov.Bill Rittersaid today he will move quickly, deliberately and thoughtfully to select a replacement for U.S. Sen. Ken Salazar, who was nominated by President-elect Obama on Wednesday to serve as the nation's Interior secretary.
In the coming days, Gov. Ritter will consult with Coloradans throughout the state on this important decision. In order to provide Coloradans with a way to send their views and comments to Gov. Ritter, his office has established an email address:email@example.com.
"I will act as quickly as possible to name a successor for Sen. Salazar," Gov. Ritter said. "I take this responsibility seriously, and my most important requirement is to pick the person who can best serve all of the people ofColoradoin the U.S. Senate."
2 p.m. Gov. Ritter, business leaders and lawmakers will announce job-creation and business-development proposals for the upcoming 2009 legislative session. Proposals include a tax credit for new job creation, a loan program for small business, expanded job training and workforce development programs at community colleges, and a greater investment in New Energy Economy companies through the Colorado Clean Energy Fund.Location: West Foyer, State Capitol.