Legislature borrowed about $2.3M from fund during 2002 budget crisis; $636,103 tacked on
January 17, 2008 - 12:46AM
DENVER - State legislators took a big step Wednesday toward paying back nearly $3 million that the Joint Budget Committee chairman said they stole from state veterans six years ago.
Although a number of retired military members expressed their gratitude, several members of the General Assembly insisted it is a first move among many that could include asking voters for a tax increase for the state’s veterans.
The House Finance Committee unanimously passed a bill to repay $2,280,900 taken from the Veterans Trust Fund during the budget crunch of 2002.
Members also tacked on an amendment adding an additional $636,103 to represent the interest the 6-year-old “loan” would have accrued.
Created in 2000 with money from the landmark settlement with big tobacco companies, the fund subsidizes veterans’ needs not covered by the state or federal governments.
Grants have helped about 25,000 people by paying for things such as transportation to medical sites for rural residents, help for homeless veterans and improvements to Colorado’s five state-run veterans nursing homes.
The fund receives 1 percent of the annual settlement payments, or a maximum of $1 million from the settlement fund, each year.
The goal is to generate a $20 million principle balance so that the Department of Military and Veterans Affairs board can hand out $1.2 million in annual grants using only the interest.
Without the $2.3 million, though, the fund has generated less interest and fewer grants — $537,525 was given out last year — for a half-decade, officials said. If the measure passes the House and Senate, the transfer will be made Aug. 15.
“You’re helping veterans is what you’re doing,” said Marvin Meyers, legislative chairman for the United Veterans Committee of Colorado. “For every dollar we have, we are able to provide greater assistance.”
The bill’s sponsor, JBC Chairman and Grand Junction Democrat Bernie Buescher, called the 2002 action and subsequently unkept promise to pay back the fund a theft and “an injustice.”
He had requested the $2.3 million principle repayment but was happy to accept an amendment by Rep. Douglas Bruce, R-Colorado Springs, that added the interest.
Demand is up for veteran services: 1,200 claims for government benefits were submitted in Colorado in 2000 and 4,500 were submitted in 2005, said Rep. Jack Pommer, a Boulder Democrat and JBC member.
Also, Vietnam veterans who have not previously sought help are seeking mental and physical assistance, said Rep. Kent Lambert, a Colorado Springs Republican and Air Force veteran.
With more troops returning from the Iraq war with traumatic brain injuries, that number will increase in coming years, said Sen. Chris Romer, D-Denver.
“We are so underfunded in this area that it’s almost malfeasance.”
Earlier in the day, Romer said the Legislature has a “moral obligation” to ask voters for a tax increase to increase the funding given to veterans tenfold or twentyfold.
Although no members of the Joint State, Veterans and Military Affairs Committee immediately backed his proposal, Sen. John Morse, D-Colorado Springs, said he’s working on a bill to create a statewide military council to help with issues such as these.
Although a number of retired military members expressed their gratitude, several members of the General Assembly insisted it is a first move among many that could include asking voters for a tax increase for the state’s veterans.
The House Finance Committee unanimously passed a bill to repay $2,280,900 taken from the Veterans Trust Fund during the budget crunch of 2002.
Members also tacked on an amendment adding an additional $636,103 to represent the interest the 6-year-old “loan” would have accrued.
Created in 2000 with money from the landmark settlement with big tobacco companies, the fund subsidizes veterans’ needs not covered by the state or federal governments.
Grants have helped about 25,000 people by paying for things such as transportation to medical sites for rural residents, help for homeless veterans and improvements to Colorado’s five state-run veterans nursing homes.
The fund receives 1 percent of the annual settlement payments, or a maximum of $1 million from the settlement fund, each year.
The goal is to generate a $20 million principle balance so that the Department of Military and Veterans Affairs board can hand out $1.2 million in annual grants using only the interest.
Without the $2.3 million, though, the fund has generated less interest and fewer grants — $537,525 was given out last year — for a half-decade, officials said. If the measure passes the House and Senate, the transfer will be made Aug. 15.
“You’re helping veterans is what you’re doing,” said Marvin Meyers, legislative chairman for the United Veterans Committee of Colorado. “For every dollar we have, we are able to provide greater assistance.”
The bill’s sponsor, JBC Chairman and Grand Junction Democrat Bernie Buescher, called the 2002 action and subsequently unkept promise to pay back the fund a theft and “an injustice.”
He had requested the $2.3 million principle repayment but was happy to accept an amendment by Rep. Douglas Bruce, R-Colorado Springs, that added the interest.
Demand is up for veteran services: 1,200 claims for government benefits were submitted in Colorado in 2000 and 4,500 were submitted in 2005, said Rep. Jack Pommer, a Boulder Democrat and JBC member.
Also, Vietnam veterans who have not previously sought help are seeking mental and physical assistance, said Rep. Kent Lambert, a Colorado Springs Republican and Air Force veteran.
With more troops returning from the Iraq war with traumatic brain injuries, that number will increase in coming years, said Sen. Chris Romer, D-Denver.
“We are so underfunded in this area that it’s almost malfeasance.”
Earlier in the day, Romer said the Legislature has a “moral obligation” to ask voters for a tax increase to increase the funding given to veterans tenfold or twentyfold.
Although no members of the Joint State, Veterans and Military Affairs Committee immediately backed his proposal, Sen. John Morse, D-Colorado Springs, said he’s working on a bill to create a statewide military council to help with issues such as these.
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