United States Senator Mark Udall joined us for lunch and a conversation last Friday; thanks to those of you who were able to join us.  You may recall this event was rescheduled, as he was unable to join us as planned in December due to action on the Senate floor around a bipartisan budget deal.

A good portion of our discussion with Senator Udall concerned the fiscal health of the country and a need for entitlement reform.  The Senator called our current trajectory an "unsustainable pathway" and stated that addressing this issue remains a key priority for him.  He outlined several modifications in the Social Security program - including means testing recipients, a change in the annual cost of living adjustment (COLA) process and a gradual increase in the eligibility age - as changes that should occur.  He was clear this was not an attempt to cut benefits - as some interest groups would portray it - but rather systematic changes to slow the benefits' growth.  However, he did note that the pressure to move this type of reform forward may be lessened as we see the economy rebounding and more tax dollars flowing into government coffers.  Colorado Concern members responded that his leadership was needed on this issue and that he should proceed.    

Related to tax reform and additional revenue for the federal government, concerns were raised about a proposal under review by the Senate Finance Committee that would move some personal service corporations and firms from a cash basis method of accounting to an accrual formula for income tax purposes.  While this change would create a one-time bump in revenue to the federal government, it also would impact business practices, leading some to acquire debt to pay their tax liability or to reduce their workforce to ensure they have the funds to meet their tax obligation. Colorado Concern members were clear this proposal was ill-conceived. 

With regard to the increased use of Executive Orders by the Obama Administration to make policy changes Congress is unwilling to consider or adopt, Senator Udall stated he supported the president's ability to use such a tool if the action was within the context of what was legal for administrative action.  Should "overreach" occur, he would weigh in, and he was open to the business community's feedback on such actions.

Senator Udall shared his concern around any proposed statewide ballot measures that would halt energy development in our state.  He has visited a hydraulic fracturing site, and believes this technology can be utilized in a safe and responsible manner. Additionally, he noted Colorado has among the strongest guidelines under which the oil and gas industry is regulated, including proposed air emissions standards currently under consideration.  

Disappointment was voiced regarding a failure for Congress to pass comprehensive immigration reform. The Senator noted a package passed the U.S. Senate, but Speaker of the House John Boehner had signaled his chamber would not bring up the bill for consideration this year.

With regard to legislative actions at the state level, a copy of our real-time status sheet is available here.  We look forward to seeing you Thursday for lunch with Senate Minority Leader Bill Cadman. 

Warmly,

Tamra