DENVER Gov. John Hickenlooper is looking for federal help for the workers hit hardest by the recession.
Hickenlooper said Thursday that he is in the discussion stages with the federal government about taking some of the states unemployment insurance budget and using it for incentives to businesses to hire people who have been unemployed for a long time.
Colorado has 25,000 people who have been out of work for two years but are still trying to find a job, Hickenlooper told the Economic Club of Colorado.
Many of these people lost jobs that are not going to come back, Hickenlooper said. The economy is evolving so rapidly. I think we as a community have an obligation to figure out, how do we retrain them?
Although he was not ready to announce a new initiative, Hickenlooper said he was trying out ideas that include a tax credit or a temporary wage subsidy to employers who hire the long-term unemployed.
He also is interested in spending unemployment money on job retraining.
The ideas would require the cooperation of the federal government.
Many of the people who have been out of work for two years are in the late stages of their careers, Hickenlooper said.
Theyre willing to spend the time to learn new skills, but they need the opportunity to learn them, he said.
The state charges a tax on businesses to fund unemployment insurance benefits. So many people lost jobs in the recession that Colorados unemployment insurance fund went broke and, like 30 other states, it had to borrow from the federal government.
Colorado owed the federal government $280.9 million as of June 15, but the unemployment insurance fund is expected to be back in the black next year, according to the Legislatures economics staff.
Colorado historically has not given out many tax credits to businesses to move here or hire new people, although the Legislature has passed modest tax credits in recent years.
In his Thursday speech, Hickenlooper focused on ways other than tax credits that Colorado can boost business even by simply talking up Colorados entrepreneurial spirit, instead of focusing on the states mountains and sunshine.
I think weve got a great business environment that we dont celebrate very well, he said.
He would rather concentrate on helping businesses that are already here than spend too much time luring new ones from other states, he said.
Even so, he said state leaders are in discussions with one or two Fortune 500 companies to relocate or expand here.
There might be one or two that surprise you. Well see, Hickenlooper said.
Reach Joe Hanel at [email protected].
