The Colorado chapter of a high-profile small-business advocacy group on Friday let lawmakers know that not every major business organization in the state favors Gov. John Hickenlooper’s plan to expand the state budget by converting the hospital provider fee into an enterprise fund.

“We didn’t oppose the fee when it was created in 2009. We thought it was set up properly under TABOR, and where we’re coming from is that fee was set up for a specific purpose — to increase our dollar-for-dollar match with our Medicaid population, so we could cover more people under Medicaid. It’s achieving those goals,” said National Federation of Independent Business State Director Tony Gagliardi.

Hickenlooper and Democrats in the Legislature looking to persuade Republican lawmakers are touting support for the plan among state business organizations, including the Denver Metro Chamber of Commerce and the Western Slope’s Club 20. The NFIB’s wary position is an arrow in the quiver Republicans are trying to fill before Democrats formally introduce a bill outlining the plan this legislative session and the nitty-gritty clashing over it begins.

Gagliardi said more than 64 percent of the membership in his group oppose the move. Members believe that reworking the fee so that it is no longer controlled by the state’s Taxpayer Bill of Rights — as the plan aims to do — would mean the fee could be raised without a vote of the people.

At the same time, Gagliardi said NFIB has been in discussion with groups that support the move, and he agrees that the state is struggling to meet its obligation to provide and maintain adequate transportation infrastructure. That’s why he thinks any proposal to convert the hospital fee must include guarantees that any freed-up revenue that results from the move would be used on transportation projects.

“(People say) we’re going to have money for transportation,” Gagliardi said. “Well, then you have K-12 education at the table… Who else will be coming for that money? None of it is earmarked.

“What happens down here is legislators tend to get the blinders on,” he said. “They’re looking at the now. They’re looking here. But we need to be looking at our Medicaid population three years, five years down the road. It’s going to keep increasing, and federal funds will keep decreasing.

“I insist you show me the plan, show me how it will work, not only today, but how will it work down the road, just like our tax policy.”

Gagliardi said NFIB wouldn’t oppose putting the hospital fee plan to the voters as a ballot question. He couldn’t say whether his Federation members would agree to support such an initiative.

—ramsey@coloradostatesman.com