Westsider Westsider 4/11/13
North Jeffco
POSTAL PATRON
April 12, 2013
A Colorado Community Media Publication
ourwestminsternews.com
North Jefferson County, Colorado • Volume 12, Issue 14
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PRSRT - STd ECRWSS US POSTAgE PAid BROOmfiELd CO PERmiT #101 Eddm
CDBG dollars decrease due to federal cuts By Ashley Reimers
areimers@ourcoloradonews.com
Competitors in the annual Fire Chief Ale Green Chili Cook-off prepare to serve their green chili on April 3 at the Promenade Rock Bottom Brewery in Westminster. The evening featured the tasting of the green chili and competition, silent auction and a Lego fire station drawing contest. The proceeds from the cook-off support the Westminster Fire Department’s related nonprofit organizations including the BURN Fund, Westminster Public Safety Recognition Foundation and Westy CFIRE, Westminster Citizens for Fire Department Improvement Recognition and Education. Photo by Ashley Reimers
Aircraft firms’ tax credit gets support Bill aims to boost employment in state By Vic Vela
vvela@ourcoloradonews.com A bill that would expand tax incentives for the purpose of new hires in the state’s aviation field is flying through the Legislature with bipartisan support. House Bill 1080 modifies the 2005 Aircraft Manufacturer New Employee Tax Credit, which provides a one-time $1,200 tax credit for a new employee hired by an aircraft manufacturer. The bill expands the available tax incentives to manufacturers that provide aircraft maintenance, repair and modification services, which were not included in the bill from eight years ago.
Rep. Chris Holbert, R-Parker, a bill sponsor, said it’s important to extend the existing earned tax credits in an effort to attract high-paying jobs in a growing field, rather than having planes fly to other states just for the purposes of having repairs done. “We have to recognize that big carriers like Report United or Frontier, when they need to maintain an airplane, very often they’ll fly it to Wisconsin or Chicago to do the work there, and then bring it back,” he said. “I think it’s ridiculous that Colorado is losing out on those job opportunities.” Holbert said he was approached about the idea for the bill by representatives from
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Centennial Airport. Airport Executive Director Robert Olislagers said Colorado is in a tough competition with other states for tax incentives for aviation jobs. “Twelve hundred dollars in tax credits doesn’t sound like a whole lot,” he said. “But, if you add that in with other incentives that Colorado counties are providing, it starts to add up.” Olislagers also said he hopes the bill will create more aviation jobs for veterans, especially when it comes to work that involves modifications of aircraft. The bill passed the House on April 5 by a vote of 61-2, with two members excused from the vote. “It’s a growing industry in Colorado,” said bill co-sponsor Rep. Tracy Kraft-Tharp, D-Arvada. “This bill helps aircraft manufacturers by being able to hire employees.” The bill now heads to the Senate.
Effects of the federal sequestration process are trickling down to the local level. For Westminster, the spending cuts are causing a 5 percent cut in Community Development Block Grant (CDBG) funds. This cut is across the board for the CDBG program and most likely will result in a reduction of $25,000 for the city’s allocation. “We are basing the $25,000 on what we received last year, which was $525,000. So our estimate this year is that we will eventually end up with $500,000,” said Tony Chacon, south Westminster revitalization coordinator. “This cut will affect our staffing levels and then our programs and future projects.” CDBG funds are allocated each year by the U.S. Department of Housing and Urban Development and are available for projects that benefit cities with low- and moderate-income residents. Westminster’s allocation will be used to revitalize parts of south Westminster. Chacon said the loss of $25,000 is equivalent to the loss of five to seven low-income home repair grants. “This cut puts more pressure on city resources to backfill the loss from sequestration,” he said. Earlier this year the city approved the CBDG projects which include: Rodeo Market Park improvements, Westminster Grange/Rodeo Market community arts center feasibility study, Bradburn Boulevard realignment and the 76th Avenue pedestrian improvements. Chacon said these projects won’t be affected by the cut, but the timeline to complete the projects could end up being longer. He said the city is constantly keeping track of what the federal government is doing, and is aware that future CDBG cuts could be made. “The city is preparing themselves for a gradual dissipation of federal dollars,” Chacon said. “We know over time this 5 percent could add on and be more in the future so we are trying to be proactive by seeking alternative sources to do the same level of improvements in the city.”
Bill would punish outsourcing on state projects Contractors uneasy with provisions of measure By Vic Vela
vvela@ourcoloradonews.com Democratic lawmakers on April 8 unveiled legislation aimed at promoting local hiring and putting in place penalties for contractors who outsource work involving state projects, when avoidable. But, so far, the so-called Keep Jobs in Colorado Act has been met with uneasiness by representatives of the contracting field, who are expressing concern over key requirements of Report the legislation and worry that the bill could run up the cost of doing business with the state. House Bill 1292 was announced at a Capitol press conference, where it was touted as a bill that will “reform state procurement,” the bidding process for state work projects.
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Rep. Dan Pabon, D-Denver, said the legislation will “promote local hiring, domestic manufacturing, and will help stop the outsourcing of jobs with taxpayer money.” “Our number one job is boosting our state’s economy and connecting more Coloradans to good jobs,” Pabon said. “One way to do that is to ensure that state funds, our taxpayer dollars, go to hire Colorado workers and support Colorado businesses.” The bill would expand the state’s “best value” bidding process, to include factors beyond low bidding in awarding contracts, such as the availability of Colorado workers and whether domestic materials like iron and steel are being used for state-backed projects. The bill also would put in place financial penalties for companies that do not meet a current legal threshold, which requires that 80 percent of all taxpayer-backed state project labor be conducted by Colorado workers. Sen. Andy Kerr, D-Lakewood, said that the 80 percent requirement has been on the books since 1933, but that the jail penalty for company owners who do not abide by the law has not been enforced. Kerr said the bill would replace jail time with financial penalties for companies that
do not comply, with fees as high as $25,000 when violations are found. “We are putting some teeth into a law that is already in existence,” Kerr said. “And we are making sure that it is feasible for it to be followed, as well.” The bill takes a “three strikes and you’re out” approach to companies that do not comply with the law, which could result in a company no longer being able to do business with the state. Enforcement will be up to the state Department of Personnel and Administration and the state Department of Labor and Employment. “If somebody violates those rules, there’s going to be consequences,” Pabon said. But representatives of the contracting field were not exactly jumping out of their seats with excitement over the bill, during a legislative committee hearing that followed the press event. Some had neutral positions on the bill, saying they just don’t know enough about the legislation or its cost to form an opinion at this time. But they did express concern over the 80 percent requirement, especially over how it’s enforced. Some who testified said that, for example, it would be difficult for contractors to ensure they are working with Colorado-
based materials. “That’s a complicated process,” said Craig Clark of Dynaelectric, an electrical contracting company. “We have a tough enough time identifying a U.S. project.” Republican members of the House State, Veterans and Military Affairs Committee also expressed concern that contractors would be penalized over things that would be difficult for them to control, such as whether those in the process are being honest about whether labor and materials are Colorado-based. “There’s absolutely no way in this free market system that everyone is going to be truthful,” said Rep. Ray Scott, R-Grand Junction. “It gets into the weeds so deep and puts such a burden on a general contractor.” The committee ran out of time during the hearing and will vote on the matter at another time.
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