Business leaders who have been asking for help from the legislature during this recession may have found support in a surprising place Monday.

The Senate State, Veterans and Military Affairs Committee unanimously recommended a bill that could cut by two-thirds an annual tax that businesses pay for workers' compensation.

Senate Bill 37 originally proposed eliminating payments that all businesses must make into the Subsequent Injury Fund and Major Medical Insurance Fund, two accounts to help employers pay for workers injured on jobs. The funds pay active claims of 684 workers, but both are closed and haven't accepted a new beneficiary since 1993.

But legislative leaders said they are hoping to move $118.7 million from those funds into the general fund this year to balance the budget and avoid further cuts to services like health care and higher education. And bill sponsor Sen. Mike

Kopp, R-Littleton, said he was concerned the $34 million businesses would be allowed to keep - rather than give to the state - might strike some lawmakers as too much for the state to lose during a recession.

So, Kopp offered an amendment Monday that would end a requirement that the funds be filled to actuarial balance and mandate instead that they have just enough money to cover the next year's payments.

This means the funds would need much lower balances and businesses that pay as much as $50,000 in the tax now could pay about one-third of that next year.

That could let businesses keep $20 million to $25 million a year they now pay and put it to much-needed job creation instead, Kopp said.

Filling the funds has been a source of aggravation for business groups.

Both funds were within two months of actuarial balance in 2002 when legislators took $170 million from them to balance the budget during the last recession. It is estimated that they are one to two years from actuarial balance again, but another raid would require businesses to continue paying.

Colorado Treasurer Cary Kenn- edy said if payments into the funds dry up, she is concerned she would have to sell longer-term investments to come up with the cash to keep the state running.

Some investments might have to be sold for less than value and would cost the state money, she said.