Claudette Konola
 
After the most recent Economic and Revenue Forecast was released, I blogged that anyone running for office in this environment must be certifiably insane. While the task is still daunting, something arrived in my in-box yesterday that has me fired up and filled with hope again. Being part of a team, lead by  Hickenlooper, is an exciting prospect.

Hickenlooper released a white paper titled Economic Development Solutions for Colorado, On the Road to Making Colorado Synonymous with Innovation. Only an economic developer or policy wonk could get excited reading a white paper, but this one is exactly what Colorado needs.

Economic developers insist that entrepreneurs have a good business plan. Campaign managers insist that candidates have a good campaign plan. Hickenlooper’s business background is showing when he delivers the same kind of plan for the state of Colorado.

He talks about “branding.” The brand he wants for Colorado is an attractive place to visit, and a place where entrepreneurs and small businesses find the support they need to be successful competing in a global marketplace.

He talks about building on what we know best. Colorado is already an innovation leader in Aerospace, energy, biosciences, agriculture, information technology communications and tourism. His road-map to success is designed to make these key sectors thrive, by making the government agencies already in place more responsive to their needs.

He talks about making government programs focus on the entire lifecycle of a small business from creation, capital development and counseling to incentive programs and procurement assistance. He talks about consolidating existing programs to make them easier to access and more understandable for entrepreneurs.

Maybe I’m so excited because he is talking about the same things I’ve been blogging and thinking about:

·         Making sure that small businesses have access to credit and capital. (He needs to talk to me about New Markets Tax Credits, and forming a statewide Certified Development Entity!)

·         Streamlining state services so that government is more efficient, thus more effective and less expensive to run.

·         Partnering with non-profit organizations like CDFIs to bolster the Colorado Main Street program.

·         Helping community banks access lending capital through programs like the Colorado Credit Reserve Program.

Homework

Hickenlooper's Road Map For Colorado

Colorado Main Street Program

Colorado Credit Reserve Program

New Markets Tax Credits
 
 
Reining in the excesses of Wall Street will never be discussed in the chambers of the House in Denver, but it is an issue that stirs passion in my heart. I have a lot of grey hair, and some of it was caused when the banking industry moved from a collection of many small community banks to a collection of large global banks. In fact, as that trend accelerated, and decisions moved away from the bank on Main Street to  global money centers, I decided to call in WELL. I left the world of banking for the world of not-for-profits.

I called it Merger Madness. Over a five year period, the company I worked for bought small community banks and merged them into our holding company.  I was part of the team that would go into the Main Street Bank and decide what price our Money Center Bank would pay the shareholders. I was part of that team because I understood good underwriting and how to analyze the books of a bank to determine where the threats to safety and soundness lurked.

As we grew, it became apparent that we were pursuing policies that threatened the safety and soundness of our own bank. I remember almost falling out of my chair one morning when a community bank showed up on my overdraft list. I had to decide if I should approve an overdraft that was larger than the entire asset base of that bank. When investigating the cause of the overdraft, I learned that the community bank had sent us a deposit that we posted to the WRONG account, and in “fixing” our error we compounded the problem by posting a credit as a debit. The bank wasn’t overdrawn with us, our operations were incompetent. When challenging the operations manager,  she told me that it was less than 5% of OUR assets, so it wasn’t important.

WHAT? If I would’ve refused to approve that overdraft, that community bank could have FAILED. If a bank is too big to fail, it is too big to exist. They have no idea how their decisions impact the little guy, and they are a danger to our economic security.

Homework: http://online.wsj.com/article/SB10001424052748704509704575019032416477138.html