For those of us who closely follow the action at the State Capitol, there is a bright spot this session. Lawmakers have an opportunity to address the growing liability of PERA, the Public Employee Retirement Association.

If passed, HB22-1029 will take a significant step toward reducing our unfunded PERA obligation. The state government had a commitment to pay down $225 million of that obligation in 2020. For understandable COVID-related reasons they did not. This bill would require that they make the payment they missed, and in so doing take advantage of the fact that right now the state has a surprising amount of one-time dollars available. Taxpayers should get the benefit of those funds.

In the midst of legislative debates over crime, fentanyl and affordable housing, PERA, may not garner the voluminous headlines, but the choices our elected officials make on this issue will have lasting impacts for years to come.

The problem is simple: there is a massive imbalance between the benefits offered by PERA and what state agencies, local governments, school districts and taxpayers can afford.

Consider this: a recent study from the non-partisan Common Sense Institute (CSI) estimates that approximately 50% of annual contributions are used to pay down the unfunded liability. Our state’s pension program is not actuarially supported by enough pension assets. Thus, this huge unfunded liability of approximately $30 billion. The most recent reform trying to solve this issue was SB18-200. It obligated the state to an annual additional payment from the state general fund of $225 million. Additionally, if actuarial analysis suggested that in 2048 the fund will still have a deficit, annual participant and employee payments into the fund would be increased by an agreed formula and pensioners’ inflation adjusted payments would be reduced.

However, in 2020, the state skipped its annual $225 million contribution. Thus, contributing to the unfunded liability of $30 billion. Making up for the 2020 payment, which HB 22-1029 does,  would reduce this liability by approximately $1 billion.

For the average Coloradan, the situation is akin to paying off a credit card. If you run up the charges on your card and continually incur interest on the debt, paying the minimum payment will never allow you to get back to even.

The solution, like all good, common sense solutions, is rooted in fact and driven by thoughtful voices absent of political bickering. Under the very capable leadership of State Rep. Shannon Bird (D-Adams), the Pension Review Commission and the Pension Review Subcommittee invested hundreds of hours of study and debate. As a result of those efforts, Rep. Bird developed HB22-1029, a legislative measure that will address the growing PERA liability.

Rep. Bird’s bill makes use of the windfall of healthy tax revenues in 2021 to address the growing liability. The significance of this action cannot be overstated.

Without HB22-1029, the PERA liability will fall to taxpayers and send Colorado down the path of states like Illinois, where public pensions consume one quarter of the state budget.

Again, imagine the average Coloradan’s budget. What happens when they run further and further into debt to pay for unnecessary but nice-to-have items? The household budget is eventually swallowed by debt putting even the most basic needs – housing, transportation, health care – out of reach.

Passing HB22-1029 puts us back on the path to solving our unfunded deficit by 2048. Join us and urge lawmakers to pass this legislation.

Kent Thiry is the former executive chairman of DaVita’s board of directors. Earl Wright is the CEO and chairman of the Board of Directors of AMG National Trust Bank.