Here’s the problem: state revenues are down, expectations for state spending are up (sounds like my family budget situation too).
So what are we going to do? Rob a bank? No, lets seize the money in an insurance company’s accounts, after all it looks like the insurance company, Pinnacol Assurance has more assets than liabilities.
Pinnacol is a workers compensation insurance company that was originally created by the state and then finally turned loose in 2002. At the time, their liabilities exceeded their assets by about $200 million. Now, their assets exceed their liabilities by about $600 million.
They are paying big dividends and have cut premiums by 42% over the past four years.
So the Democrats in Colorado (and two Republicans) have decided to take their “extra” money. That’ll teach them for being successful.
Two other states have tried the same thing in very similar situations and the courts in those states have sided with the insurance company. No telling what our activist Supreme Court will do, but I am positive the insurance company won’t just write the check because the Governor signs the bill that steals their money.
Expect a long protracted battle so ensue. The majority party has no plan for dealing with the defeat, except to close have of the colleges in the state.
I expected more from them.