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A coalition of education-minded business leaders is proposing a Colorado ballot measure that calls for fully privatizing a state-run insurance provider and using the proceeds to help residents access workforce training.
Pinnacol Assurance, which provides workers compensation insurance, operates like a private mutual insurance company but, as a state political subdivision, gets certain state and federal tax exemptions. Its future has been a matter of political debate for years, especially because the company’s leaders have wanted to sell insurance out of state, but can’t because of its state ties.
The proposed ballot measure puts pressure on state lawmakers to figure out how to separate Pinnacol from the state government or risk letting voters decide its fate.
Colorado is facing an $850 million budget hole for the next fiscal year. Gov. Jared Polis’ 2026-27 budget proposal called for Pinnacol to pay the state $400 million for the right to convert to a private company. Polis proposed using that money to pay for priorities such as K-12 education and health care. The company’s leaders called Polis’ proposal a step forward but expressed reservations about how much money should go back to the state.
The proposed ballot measure was filed last week by Colorado Succeeds, which aims to draw on business leaders to help solve education problems in the state. The initiative needs about 124,000 signatures to make the November ballot.
The measure would provide an alternative to Polis’ plan while also boosting a variety of workforce training programs. These include apprenticeships, as well as programs that were propped up by one-time federal pandemic relief funds that offered free training opportunities in fields like teaching, healthcare, and skilled trades.
Polis spokesperson Shelby Wieman said on Wednesday that Polis still backs his budget proposal and thinks state lawmakers should figure out how to proceed with Pinnacol, rather than leaving it up to voters.
“The ballot proposal would convert Pinnacol but lacks robust feedback from workers and employers alike and significantly undervalues Pinnacol as a state asset,” Wieman said.
The ballot measure would generate less than Polis’ proposed $400 million. It would use $150 million from a Pinnacol trust established in 2002 when the company partially separated from the state to create a so-called Skilled Workers and Trades Fund. The measure would generate an additional $10 million per year for the fund from ending Pinnacol’s state tax subsidies.
Scott LaBand, president of Colorado Succeeds, said he expects the fund to provide scholarships of up to $3,000 per year for eligible Coloradans and support workforce training for about 5,000 Coloradans a year.
The measure would allow Pinnacol to become fully private by 2027.
“Pinnacol was created to serve Colorado’s workforce,” LaBand said. “So this is a direct connection to continuing that mission by investing in the workforce skills that are needed to be successful in Colorado’s labor market and economy.”
LaBand said he views the ballot measure as a win for Pinnacol, lawmakers, and students. The state has pieced together funding for some workforce training programs through one-time funding and grants, he said, while this measure represents an opportunity to invest in training that will benefit the industries Pinnacol has supported for years. The organization’s measure would provide sustained funding and evolve with the workforce needs of Colorado, he said.
Polis’ Pinnacol proposal, by contrast, is a short-term solution that would provide one-time funding to cover a state budget deficit, LaBand said.
“It makes more sense to make this a legacy asset so residents can get good paying jobs and become contributors to the state economy,” LaBand said.
A Pinnacol Assurance spokesperson said in a statement that the company’s board hasn’t yet taken a position on the ballot measure or the governor’s budget proposal. The company’s priorities are to “represent the best interests of our members and workers, paying an appropriate price for a full separation, and maintaining the capital to support workers across the state,” the statement reads.
The statement added company leaders are encouraged by the ballot measure’s focus on long-term workforce development and skills training.
“Through Pinnacol’s own leadership in this space, we have seen firsthand how training and vocational support can transform the lives of Colorado workers,” the statement says. “Expanding this commitment through additional investment in skills training also supports the needs of our economy, helps prevent future workplace injuries, and ultimately lowers costs for employers.”
Democratic House and Senate leaders didn’t commit to the measure as they mull how to approach the Pinnacol situation and the state’s budget hole.
Colorado House Speaker Julie McCluskie said in a statement on Thursday that Pinnacol will be a big topic this legislative session that has generated a lot of different ideas for its future.
“I look forward to reviewing the ballot measure in more detail and talking with stakeholders who are engaging in the Pinnacol conversion conversation,” she said.
Senate President James Coleman said in a statement that he’s committed to looking at all options to address this year’s budget shortfall. The proposed ballot measure wouldn’t allow lawmakers to have a say over the funds, he said.
“Any decision would benefit from deliberation and oversight from the (Joint Budget Committee) and legislature as a part of the holistic budget picture,” he said.
Jason Gonzales is a reporter covering higher education and the Colorado legislature. Chalkbeat Colorado partners with Open Campus on higher education coverage. Contact Jason at jgonzales@chalkbeat.org.
