2021 Legislative Session Preview

2021 Legislative Session Preview

The 2021 Colorado legislative session will be unique in many ways, given the challenges of the pandemic. As the Bell Policy Center has thought through the priorities it will push to help grow economic mobility in Colorado, we know short-term patches which are crucial to moving past the pandemic that ignore long-term structural deficits and inefficiencies will be inadequate to meet the challenges of our time.

The COVID-19 pandemic and associated economic troubles have laid bare real problems that have been percolating just under the surface for a long time. Just to offer a few examples, as of the week of February 8, 2021 (all numbers courtesy of the United States Census Household Pulse Survey): 

  • Over 36 percent of Coloradans believe they are at risk of eviction or foreclosure
  • More than 30 percent of Coloradans have had difficulty paying for usual household expenses
  • Nearly 25 percent of Colorado adults anticipate a reduction or loss of employment income for themselves or someone in their family over the next month
  • Over 7 percent of adults live in a household that is experiencing food scarcity

Below are some particularly important areas we are prioritizing, and some specifics on what we are working on to move forward in the new session and beyond.

Ongoing COVID-19 Needs
There needs to be attention to tax relief for low- and middle-income families. The recovery from COVID-19 has been extremely uneven, with individuals and families on the lower end of the income spectrum continuing to be crushed 17.6 percent of low-wage earners have lost their jobs while high-wage earners have basically held steady while the recovery continues apace for others. That is why we must expand the Earned Income Tax Credit and fund the Child Tax Credit to help those who need it.

Long-Term Recovery
Colorado needs to fix its upside-down tax code. There are a multitude of ways to fix our state’s unfair system whether through the legislature or at the ballot box but more work needs to be done to educate Coloradans and to change the system so it helps our state and our residents thrive economically.

Legislation to Watch
We will be advocating for legislation that will move Colorado toward a more fair tax code, including tax relief for low-income families who continue to struggle during the pandemic and from stagnant wages. We also hope the legislature will understand the need to close tax loopholes that overwhelmingly benefit the wealthiest Coloradans and have been identified as ineffective by the state auditor’s office.

Ongoing COVID-19 Needs
With short-term relief funding, we need to continue addressing the needs of Coloradans who have disproportionately suffered during the pandemic.

Long-Term Recovery
The General Assembly cut $3.3 billion in spending last year. That means investments in our state were cut short and many important public programs lost significant funding, hurting Coloradans who rely on those programs. While some of that may be repaired this coming year, there are still many unmet needs. It is crucial we restore and increase funding to the places we know have significant returns and help Coloradans who are struggling.

Ongoing COVID-19 Needs
COVID-19 and associated job losses have exacerbated financial precarity in Colorado, which is reflected by the 33 percent of Colorado adults who live in households that have struggled to pay for expenses during the pandemic. We need to ensure residents know where to access crucial resources such as direct assistance, navigation, and legal help.

Long-Term Recovery
Colorado needs to reform predatory debt collection and other harmful practices, but also find new ways to create financial products that encourage strong wealth building. A statewide office of financial empowerment will help provide a comprehensive approach.

Legislation to Watch
Protections against extraordinary debt collection have extended until June 1. We will advocate for legislation that will establish a statewide financial empowerment office, which is intended to assist residents with asset building, banking access, consumer financial protection, as well as financial education and counseling. In addition, legislation to reform hospital and emergency room billing and increase oversight of non-bank mortgage servicers is in the works. We will also support a bill to provide protection to private student loan borrowers.

Ongoing COVID-19 Needs
Already earning low wages, child care providers are struggling to meet the increased health and safety costs and need access to public funds to keep their doors from permanently closing due to COVID-19. Early care educators in low-income and rural communities are facing heightened challenges to equitable access to technology and guidance to accommodate small group learning. Working families with young children also face challenges and need flexibility in their workplace and stability in their child care arrangements.  

Long-Term Recovery
Colorado needs to invest in long-term financial sustainability efforts for programs to adequately compensate educators and to provide all families, regardless of income or region, access to quality care options. Targeted efforts to recruit and retain educators is equally important to ensure all families have multiple options that fit their child care needs.

Legislation to Watch
We will support efforts to create alignment between local and state child care licensing requirements. The proposed legislation will eliminate conflicting local and state requirements for aspiring providers to obtain a child care license or expand existing providers’ program capacity. We are also supporting legislative efforts to create pathways for immigrants without documentation to obtain a state child care license and access to child care subsidy programs. The proposed legislation will eliminate application requirements for proof of lawful presence for occupational and professional licenses and local and state funded programs.

Ongoing COVID-19 Needs
The impacts of COVID-19 have been particularly significant for older Coloradans and both the paid and unpaid caregivers who support them. As we continue the battle against COVID-19, we must ensure workers and providers have the resources to remain safe, unpaid caregivers have the supports necessary to continue caring for their loved ones, and older adults maintain access to essential services and programs.

Long-Term Recovery
Colorado is one of the fastest aging states in the country. Yet, the infrastructure our changing demographics rely upon has failed to keep up. As we look toward the future, we must make targeted investments into existent and emerging networks to keep-up with the growing demand for necessary supports.

Legislation to Watch
As a result of our COVID-induced economic downturn, older workers are at greater risk of long-term unemployment and involuntary exit from the labor force both of which threaten family and community economic security. Age discrimination is a recognized contributor to the difficulties older workers are likely to face in the coming months and years. In partnership with others, we’re excited about finding ways to strengthen age discrimination laws throughout our state.

Ongoing COVID-19 Needs
Workers negatively impacted by COVID-19 need to be protected and compensated for the risks they are undertaking and those who lost jobs must be able to broadly and easily access benefits to support themselves through unemployment insurance, food assistance, and other supportive programs. This especially true for women and workers of color. Supports need to be provided to all workers regardless of documentation status or whether their employers call them an independent contractor or a public or private employee.

Long-Term Recovery
As Colorado looks towards recovery, we must ensure workers have access to income supports and training programs that allow them to transition to new jobs if their previous jobs do not exist. Access to broadband and technology will be imperative for new work options and training. As the crisis had made too clear, Colorado must expand access to critical social insurance and benefit programs, increase minimum wages for those hardest hit by the crisis, and maintain labor protections for workers no matter if they are currently misclassified as independent contracts.

Legislation to Watch
We will support bills that expand access to benefits for workers left behind by federal restrictions, primarily those who file taxes using an individual tax identification number (ITIN). We will also defend protections for workers who are confronted with the health risks of the pandemic. As outlined in the Colorado Department of Labor and Employment’s report on misclassification and independent contractors, it is important Colorado does not move forward with a California Proposition 22-like proposal that isolates gig workers from long-standing worker protections.

Ongoing COVID-19 Needs
Higher education institutions need to be fully and equitably funded so all Coloradans, regardless of class, race, or where they live, can access postsecondary credentials. For these reasons, restoring base funding to institutions after last session’s budget cuts is critical. This needs to be paired with additional efforts to make postsecondary education more affordable for students. 

Long-Term Recovery
Higher education funding never recovered after cuts following the Great Recession. Raising investment in higher education beyond where it was before the pandemic is crucial to helping higher education become more affordable in Colorado. Over time higher education must become more flexible so different learners can more easily access credentials that are strongly aligned with industry needs.

Legislation to Watch
This session, the Joint Budget Committee will have the opportunity to restore funding back to pre-pandemic levels. In addition to this, legislation that can help make higher education more accessible, such as through private student loan consumer protections may be considered.