Opinion: Don’t raid Coloradans’ unclaimed property to patch up the state’s broken budget

By now readers are well aware of the $1.2 billion budget hole state lawmakers are urgently trying to fill. As a former member of the Joint Budget Committee, I empathize with the tough choices ahead. But as Colorado state Treasurer, it’s my job to consider our state’s long-term fiscal outlook. Without sustained attention to the budget’s foundational problems, I’m afraid we will find ourselves in the same predicament year after year.

First, it’s important to acknowledge how we got here. Despite our strong economy, the state must pay for more with less due to ballooning Medicaid costs and the end of pandemic-era federal funding. The revenue caps mandated by the Taxpayer’s Bill of Rights (TABOR) and new commitments approved through Proposition 130 further limit the cash we can use to fund essential services, like K-12 education and health care.

This fiscal dilemma has state leaders scrambling for solutions – ones I worry could hurt us down the road.

For example, some lawmakers have suggested raiding the state’s unclaimed property trust fund — which holds $2 billion of lost assets — to cover the shortfall. Coloradans hold the right to reclaim their personal funds at any time through the Great Colorado Payback, and we should never use their private money to fund programs or services, however well-intentioned. Other proposals would require the Treasury to gamble with the state’s investment portfolios, unnecessarily increasing risk in the long term.

Robbing Peter to pay Paul may work this session, but it will not rescue Colorado from our persistent budget emergency. We must take steps that will set us up for sustainable growth.

First, we should seriously consider tapping into the state’s reserve funds. When it’s pouring outside, you don’t wait until your basement floods to take action. Given the perfect storm we’re facing this session, let’s use one-time money to plug the hole and avoid brutal cuts that harm everyday Coloradans.

Next, we must finally take on TABOR reform. Our current budget structure is unsustainable. I echo the ideas raised by House Speaker Julie McCluskie: we should evaluate a short-term pause on spending caps, modeled after Referendum C, or put forth another ballot measure like Proposition CC. Whatever path we choose, we must work closely with Colorado voters to identify priorities and find solutions that transcend our current scarcity model.

As our most significant expenditure, Colorado’s Medicaid program deserves a hard look, too. The Department of Health Care Policy and Financing has yet to fully implement House Bill 1318, a bipartisan Joint Budget Committee (JBC) bill I ran and passed in 2015 as a lawmaker that improves the delivery of health care and services for people with intellectual and developmental disabilities while saving tax dollars. Ensuring people have access to appropriate care avoids burdening our emergency rooms and saves us all money in the long run.

And finally, we must carve new funding streams to solve significant and longstanding problems. For our part, we are working with JBC members Sen. Jeff Bridges, Sen. Judy Amabile, and Rep. Shannon Bird through Senate Bill 81 to establish a new special purpose authority dedicated to infrastructure funding. This authority would mobilize public and private capital to provide creative financing options — such as a revolving loan fund — to develop affordable neighborhoods, build clean energy systems, and invest in other forward-looking projects.

With chaos and uncertainty swirling at the federal level, state government must lead with composure, reason, and most importantly, courage. I pledge to continue tackling Colorado’s structural issues before it’s too late.

Dave Young, of Greeley, is the Colorado State Treasurer.

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