Two powerful Colorado legislators said they will push for changes in the state's management of the Conservation Trust Fund, a $43 million pot of lottery profits that is supposed to pay for parks and recreation.
Meanwhile, the state auditor said Tuesday that she is moving forward with an audit of the fund. The auditor, Joanne Hill, may propose additional changes as early as January.
Stories in The Denver Post on Nov. 9 and 10 outlined how the two chief pools of lottery profits that voters said must be used to preserve the state's natural beauty may have been wrongly tapped.
One report highlighted how Great Outdoors Colorado funds are increasingly being used to subsidize salaries rather than the open- space acquisitions voters approved more than a decade ago. The other showed how the Conservation Trust Fund operates with very little oversight.
Most local governments honor the law requiring the Conservation Trust Fund to be used for open space and outdoor recreation purposes. But in one extreme case, a town official was able to siphon $1,500 from the fund in order to feed an Internet gambling habit.
In other cases, communities appeared to stretch the definition of "parks and recreation," using Conservation Trust Fund cash for fireworks, air conditioners and cellphones.
In addition, if egregious spending is discovered by state officials, the law is written in such a way that there is little they can do. The state's Department of Local Affairs gives the money directly to cities and counties, based strictly on population.
"If I find a smoking gun, I can't even blow it out," said Michael Beasley, executive director of the Department of Local Affairs.
Officials say that wholesale changes to the fund's operation would be difficult. The fund's rules are dmbedded in the state constitution. Therefore, a change requires a vote of the people, or a two-thirds majority in the General Assembly and support of the governor.
But there may be some relatively easy fixes.
Sen. Norma Anderson, the Senate majority leader and a Republican from Lakewood, said she would support a plan to end commingling other moneys in local conservation trust funds. That way, it would be easy for auditors to spot misspending and alert the local governments that they are off course.
"No commingling," said Anderson, who also sits on the state's audit committee. "That's the No. 1 issue."
She also suggested that the Department of Local Affairs publicize better what communities spend the money on. That way, residents can take concerns directly to local leaders if they believe trust-fund cash is being misspent.
Sen. Ron Tupa, a Boulder Democrat who serves as the chairman of the audit committee, said he believes the rules over spending can be tightened without tinkering with the constitution.
He also said he would support creating penalties for local communities that misspend Conservation Trust Fund cash.
"There needs to be some correction to that," Tupa said. "I think we need to not only tighten up the definition of what the allowable uses are to spend the money on, but also find some way to recover moneys that are misused or spent illegally."
A spokesman for Gov. Bill Owens said that the administration supports Beasley's review at the Department of Local Affairs and that Owens would review any new legislation next year.
"The governor certainly will be looking to see what sort of legislative proposals will be spawned from the audit as well as by others who are concerned over how the money is spent," said Dan Hopkins.
Beasley said he would push for another staff person to follow fund spending. Right now, because of budget cuts, his staff cannot take on other duties.
"These folks have been squeezed to a point where there's no more blood coming out of this turnip," he said.
As long as unclaimed prizes go back to winners in future games/drawings.