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Gov. Bill Ritter said Wednesday that he would not, after all, seek to transfer more than $1 million from the fund to pay law enforcement officers overtime in order to enforce DUI laws on holiday weekends this year.
The governor had said on Tuesday that he would seek to shift the money to drug and alcohol treatment programs. The money in the so-called "LEAF" (for Law Enforcement Assistance Fund) was frozen in an executive order issued by Ritter on Saturday.
Ritter's spokesperson, Evan Dreyer, said the governor has not ruled out asking the legislature to shift LEAF money to drug and alcohol treatment programs in future years.
LEAF was created by the General Assembly in 1983 and is funded by an automatic fine assessed on every person convicted of DUI in the state.
Showing posts with label budget policy. Show all posts
Showing posts with label budget policy. Show all posts
Thursday, September 3, 2009
Wednesday, August 19, 2009
Ritter Announces More Budget Cuts for FY 2010
Gov. Bill Ritter said Tuesday he will cut $320 million in state spending this fiscal year by releasing some prisoners and eliminating almost 270 government jobs, among other actions, and that he will seek to raise fees for background checks on those who seek to buy guns.
The announcement came as the governor works to close an expected $318 million shortfall this fiscal year.
The current budget gap follows earlier expected deficits of $1.4 billion, which were eliminated by other spending reductions and transfers from cash funds.
Ritter also plans to attack the current shortfall by relying on federal dollars provided by the American Recovery and Reinvestment Act signed by President Barack Obama in February. $52.5 million will be provided this year by Washington to pay for Medicaid programs. Ritter is also counting on $80.9 million to replace money Colorado cut from its higher education institutions.
So-called "stimulus" money from the federal government will be reduced next year and then be eliminated in fiscal year 2012.
The governor will also rely on additional transfers from cash funds.
Next year's shortfall could be larger than the one Ritter is currently dealing with under the authority granted him by state law to prevent budget deficits. Some estimates indicate that the state government could be facing an obligation to pay at least $350 million more for prisons, health care and social programs.
The spending reductions from corrections will come, according to Ritter, by releasing some prisoners six months early and by terminating post-release supervision of some convicts on parole.
Ritter also wants to eliminate 59 beds at a Fort Logan mental health facility and close a 32-bed nursing home in Grand Junction.
The plan also eliminates $200 monthly stipends given people who have applied for Social Security Supplemental benefits from the federal government but have not yet started receiving them.
The spending cuts amount to about 3.5 percent of the state's general fund.
The suggested fee increases include a new $10.50 charge for background checks assessed on those who attempt to purchase a firearm and an increase in the current $17.95 fee assessed on new government employees for a criminal background check.
The General Assembly would have to approve the fee increases for them to take effect.
The governor has the authority to execute the spending cuts without legislative approval. Most of them will take effect Sept. 1.
The announcement came as the governor works to close an expected $318 million shortfall this fiscal year.
The current budget gap follows earlier expected deficits of $1.4 billion, which were eliminated by other spending reductions and transfers from cash funds.
Ritter also plans to attack the current shortfall by relying on federal dollars provided by the American Recovery and Reinvestment Act signed by President Barack Obama in February. $52.5 million will be provided this year by Washington to pay for Medicaid programs. Ritter is also counting on $80.9 million to replace money Colorado cut from its higher education institutions.
So-called "stimulus" money from the federal government will be reduced next year and then be eliminated in fiscal year 2012.
The governor will also rely on additional transfers from cash funds.
Next year's shortfall could be larger than the one Ritter is currently dealing with under the authority granted him by state law to prevent budget deficits. Some estimates indicate that the state government could be facing an obligation to pay at least $350 million more for prisons, health care and social programs.
The spending reductions from corrections will come, according to Ritter, by releasing some prisoners six months early and by terminating post-release supervision of some convicts on parole.
Ritter also wants to eliminate 59 beds at a Fort Logan mental health facility and close a 32-bed nursing home in Grand Junction.
The plan also eliminates $200 monthly stipends given people who have applied for Social Security Supplemental benefits from the federal government but have not yet started receiving them.
The spending cuts amount to about 3.5 percent of the state's general fund.
The suggested fee increases include a new $10.50 charge for background checks assessed on those who attempt to purchase a firearm and an increase in the current $17.95 fee assessed on new government employees for a criminal background check.
The General Assembly would have to approve the fee increases for them to take effect.
The governor has the authority to execute the spending cuts without legislative approval. Most of them will take effect Sept. 1.
Friday, April 10, 2009
Senate Decides to Tap Pinnacol Funds to Close Budget Hole
The Senate decided late Thursday night to close a $300 million funding hole for the state's higher education system by transferring $500 billion from Colorado's workers compensation insurer.
The move, which has drawn intense fire from Republicans and from Pinnacol itself, would leave the insurer with a reserve of $200 million.
Some legislators argued that the move, authorized by two Senate bills, would expose the state to a lawsuit and that the money might never be available to help close the state's huge budget shortfall.
The two bills that would open the door to a transfer of Pinnacol assets to the state's general fund are SB 273 and SB 281. The first was preliminarily approved in the Senate Thursday on a 19-14 vote. Two Democrats opposed it, while Sen. Al White, R-Hayden, joined most Democrats in support. The second was gained preliminary approval, also on Thursday, on an 18-15 vote. Three Democrats opposed that bill, while White abandoned his party to support it. Both measures must gain final approval in the Senate before moving over to the House.
Republicans argued that the Pinnacol reserves do not belong to the state, since it represents premiums paid to Pinnacol by private businesses.
"This is Hugo Chavez legislation," Sen. Shawn Mitchell, R-Broomfield, said on the floor Thursday. "If a company is highly profitable, let's nationalize it."
Mitchell was making reference to the president of Venezuela, who has supported efforts to nationalize certain privately-owned industries in that country.
Pinnacol, which was created by the General Assembly and is chartered by the state, is not private. Its Board of Directors is appointed by the governor.
The move in the Senate, which came late Thursday evening, followed a confusing day of twists and turns in the ongoing budget debate at the Capitol.
For the first time in the state's history the Senate rejected a budget recommended by the Joint Budget Committee. Senate president Peter Groff, after consulting with minority leader Josh Penry, R-Fruita, sent the "long bill" back to the JBC for reconsideration so that the $300 million cut to higher education spending could be avoided.
The members of the JBC promptly sent the "long bill" right back to the Senate, with members of the committee from both parties later making clear that they had considered all reasonable alternatives.
Groff, when he sent the budget back to the JBC, asked the panel to consider whether to recommend repeal of about $2 billion in tax credits.
A state supreme court decision last month indicates that the General Assembly can repeal tax credits without approval of Colorado's electorate as long as that action does not result in revenue growth in excess of the limit specified in the Taxpayers Bill of Rights.
Meanwhile, Penry's Republicans argued for furloughs and layoffs of state employees and for across-the-board appropriations reductions to all state agencies and departments.
But the JBC rejected those suggestions, with members saying they oppose furloughs and layoffs and that there isn't time to consider either spending reductions or revocation of tax credits before this year's legislative session ends May 6.
The move, which has drawn intense fire from Republicans and from Pinnacol itself, would leave the insurer with a reserve of $200 million.
Some legislators argued that the move, authorized by two Senate bills, would expose the state to a lawsuit and that the money might never be available to help close the state's huge budget shortfall.
The two bills that would open the door to a transfer of Pinnacol assets to the state's general fund are SB 273 and SB 281. The first was preliminarily approved in the Senate Thursday on a 19-14 vote. Two Democrats opposed it, while Sen. Al White, R-Hayden, joined most Democrats in support. The second was gained preliminary approval, also on Thursday, on an 18-15 vote. Three Democrats opposed that bill, while White abandoned his party to support it. Both measures must gain final approval in the Senate before moving over to the House.
Republicans argued that the Pinnacol reserves do not belong to the state, since it represents premiums paid to Pinnacol by private businesses.
"This is Hugo Chavez legislation," Sen. Shawn Mitchell, R-Broomfield, said on the floor Thursday. "If a company is highly profitable, let's nationalize it."
Mitchell was making reference to the president of Venezuela, who has supported efforts to nationalize certain privately-owned industries in that country.
Pinnacol, which was created by the General Assembly and is chartered by the state, is not private. Its Board of Directors is appointed by the governor.
The move in the Senate, which came late Thursday evening, followed a confusing day of twists and turns in the ongoing budget debate at the Capitol.
For the first time in the state's history the Senate rejected a budget recommended by the Joint Budget Committee. Senate president Peter Groff, after consulting with minority leader Josh Penry, R-Fruita, sent the "long bill" back to the JBC for reconsideration so that the $300 million cut to higher education spending could be avoided.
The members of the JBC promptly sent the "long bill" right back to the Senate, with members of the committee from both parties later making clear that they had considered all reasonable alternatives.
Groff, when he sent the budget back to the JBC, asked the panel to consider whether to recommend repeal of about $2 billion in tax credits.
A state supreme court decision last month indicates that the General Assembly can repeal tax credits without approval of Colorado's electorate as long as that action does not result in revenue growth in excess of the limit specified in the Taxpayers Bill of Rights.
Meanwhile, Penry's Republicans argued for furloughs and layoffs of state employees and for across-the-board appropriations reductions to all state agencies and departments.
But the JBC rejected those suggestions, with members saying they oppose furloughs and layoffs and that there isn't time to consider either spending reductions or revocation of tax credits before this year's legislative session ends May 6.
Tuesday, March 17, 2009
SB 228 Heads to House
The bill that would repeal the state's general fund growth limit is on the way to the House of Representatives after gaining final approval in the Senate this morning.
SB 228, which would remove the 1991 Arveschoug-Bird law from the state's statute books, was approved 21-14 after senators rejected an effort by Republicans to send the measure to the chamber's Appropriations Committee.
Under current law the state's general fund can increase to the lower of six percent over the previous year or to five percent of the state's personal income. Any tax revenues the state generates in excess of that is dedicated to transportation and capital construction projects. The 1991 statute does not affect the amount of revenue reaching state coffers.
One of the impacts of the law has been a "ratchet-down" of the state's general fund, which pays for K-12 and higher education, human services, corrections, and state agencies, among other things, when economic conditions force state tax receipts down.
GOP critics of the legislation say it violates the 1992 Taxpayers Bill of Rights, which includes a provision specifying that spending limits can be changed only by a vote of the state's electorate.
But Democrats, along with Republican supporters Sen. Al White of Hayden and Rep. Don Marostica of Loveland, point to a legal opinion by former state supreme court justice Jean Dubofsky that says the Arveschoug-Bird law only allocates existing revenues and does not actually limit the total amount of money the state may spend in a given year.
SB 228 must clear the House before heading to the governor's office. Gov. Bill Ritter has not publicly said whether he would sign the measure.
SB 228, which would remove the 1991 Arveschoug-Bird law from the state's statute books, was approved 21-14 after senators rejected an effort by Republicans to send the measure to the chamber's Appropriations Committee.
Under current law the state's general fund can increase to the lower of six percent over the previous year or to five percent of the state's personal income. Any tax revenues the state generates in excess of that is dedicated to transportation and capital construction projects. The 1991 statute does not affect the amount of revenue reaching state coffers.
One of the impacts of the law has been a "ratchet-down" of the state's general fund, which pays for K-12 and higher education, human services, corrections, and state agencies, among other things, when economic conditions force state tax receipts down.
GOP critics of the legislation say it violates the 1992 Taxpayers Bill of Rights, which includes a provision specifying that spending limits can be changed only by a vote of the state's electorate.
But Democrats, along with Republican supporters Sen. Al White of Hayden and Rep. Don Marostica of Loveland, point to a legal opinion by former state supreme court justice Jean Dubofsky that says the Arveschoug-Bird law only allocates existing revenues and does not actually limit the total amount of money the state may spend in a given year.
SB 228 must clear the House before heading to the governor's office. Gov. Bill Ritter has not publicly said whether he would sign the measure.
Sunday, February 22, 2009
General Fund Growth Limit Author Bird Critical of Law's Impact
Former Sen. Mike Bird, R-Colorado Springs, is known as one of the two lead sponsors of the state's annual general fund growth limit. According to a report in today's Denver Post, Bird is not happy with the impact the law has had on Colorado.
According to the article by the Post's Tim Hoover,
The article also says that former Rep. Steve Arveschoug, R-Pueblo, thinks that the law has worked as its sponsors intended.
A bill sponsored by Sen. John P. Morse, D-Colorado Springs, would repeal the Arveschoug-Bird general fund growth limit.
According to the article by the Post's Tim Hoover,
"As the bill went along, Arveschoug wanted the specific spending limit," Bird said. "I never wanted a specific limit because I knew that it would not have the flexibiity of tying it to personal income."
Bird, who served in the House and Senate between 1986 and 1994, said the downward ratchet on general fund spending was "an unfortunate byproduct" of the measure.
"It doesn't make any sense to have it (the general fund) go down and then start at the lower level," he said.
He also said the bill was passed at "a time when we weren't worried about an actual decline in the economy."
The article also says that former Rep. Steve Arveschoug, R-Pueblo, thinks that the law has worked as its sponsors intended.
"The perspective I had then and probably still have today," he said, "is that we were trying to look at what the citizens of Colorado could afford so that growth could not exceed taxpayers' ability to pay."
A bill sponsored by Sen. John P. Morse, D-Colorado Springs, would repeal the Arveschoug-Bird general fund growth limit.
Monday, February 9, 2009
GOP's King Wants to Require State Employee Furloughs to Avoid Higher Ed Cuts
A west slope GOP lawmaker is proposing that the state try to avoid anticipated cuts in higher education spending by forcing state employees to take unpaid furloughs and using the money saved to fund the colleges.
According to a press release issued today by the House GOP caucus, King's bill would direct $5.6 million per day to the state's university system.
King's proposal has been introduced as HB 1221.
"Many private sector employees are making these same sacrifices in order to get their companies through these troubling times,” sponsoring Rep. Steve King, R-Grand Junction, said. “I am asking our state employees to make similar sacrifices in order to save some of the government services that Colorado families depend on from ending up on the chopping block.”
Democrats, however, may not be receptive to King's idea.
Rep. Jeanne Labuda, D-Denver, says HB 1221 violates the established procedure of having the Joint Budget Committee determine how the state will close its budget shortfall.
"If that bill were to pass both the House and the Senate and be signed by the governor, and I think all three of those are great big 'ifs,' if would require all agencies to cut their budgets before presenting them to the JBC,” Labuda said.
The Denver Democrat, who is a member of the House committee that will hear the bill, also said that she thinks the public might be put at risk if all state employees are forced to take unpaid time off.
"In theory, I don’t know if I could support that because there are many, many state employees who are in positions that are necessary for health and safety," Labuda said. "It doesn’t specify that anybody is exempted and I wouldn’t want to see our hospitals have mandatory furloughs or are public safety folks to have mandatory furloughs. This bill is one size fits all for starters."
The bill would allocate required furlough days on the basis of employee salaries, with higher-paid public employees being required to take more time off than lower-paid employees. HB 1221 says that state employees make $30,000 or less per year would be required to take off one day per month, while those making $30,000-40,000 per year would have to take 1 1/2 days off per month. Employees who are paid more than $40,000 per year would have to stay away from the job two days each month.
The state is facing a budget shortfall of at least $300 million this fiscal year and more than $600 million for fiscal year 2009.
The bill, if enacted into law, would go into effect immediately.
According to a press release issued today by the House GOP caucus, King's bill would direct $5.6 million per day to the state's university system.
King's proposal has been introduced as HB 1221.
"Many private sector employees are making these same sacrifices in order to get their companies through these troubling times,” sponsoring Rep. Steve King, R-Grand Junction, said. “I am asking our state employees to make similar sacrifices in order to save some of the government services that Colorado families depend on from ending up on the chopping block.”
Democrats, however, may not be receptive to King's idea.
Rep. Jeanne Labuda, D-Denver, says HB 1221 violates the established procedure of having the Joint Budget Committee determine how the state will close its budget shortfall.
"If that bill were to pass both the House and the Senate and be signed by the governor, and I think all three of those are great big 'ifs,' if would require all agencies to cut their budgets before presenting them to the JBC,” Labuda said.
The Denver Democrat, who is a member of the House committee that will hear the bill, also said that she thinks the public might be put at risk if all state employees are forced to take unpaid time off.
"In theory, I don’t know if I could support that because there are many, many state employees who are in positions that are necessary for health and safety," Labuda said. "It doesn’t specify that anybody is exempted and I wouldn’t want to see our hospitals have mandatory furloughs or are public safety folks to have mandatory furloughs. This bill is one size fits all for starters."
The bill would allocate required furlough days on the basis of employee salaries, with higher-paid public employees being required to take more time off than lower-paid employees. HB 1221 says that state employees make $30,000 or less per year would be required to take off one day per month, while those making $30,000-40,000 per year would have to take 1 1/2 days off per month. Employees who are paid more than $40,000 per year would have to stay away from the job two days each month.
The state is facing a budget shortfall of at least $300 million this fiscal year and more than $600 million for fiscal year 2009.
The bill, if enacted into law, would go into effect immediately.
Saturday, February 7, 2009
GOP Offers Deal: Arveschoug-Bird Budget Growth Limit for Transportation Fee Hikes
Statehouse Republicans, who are steadfastly opposed to motor vehicle registration fees increases proposed as a means to pay for transportation improvements, have offered to support legislation that would eliminate the cap on the growth of the state budget if Democrats drop the fee hikes.
The proposal, which House minority leader Mike May, R-Parker, announced today, comes in the wake of the Senate's approval Thursday of the FASTER bill.
FASTER would result in the average person's motor vehicle registration fee rising by about $40 and provide more than $200 million per year for needed highway and bridge repairs and improvements throughout the state.
May also said Republicans want a portion of the state's general fund dedicated to transportation.
""Traditionally, Republicans have said: 'Thou shalt not touch the 6 percent limit,' " May is quoted as saying in a Rocky Mountain News article. "The important thing (about the new proposal) is it provides a predictable and continuous revenue stream for transportation."
The Democratic House sponsor of the bill, Rep. Joe Rice of Littleton, said he welcomes May's idea but doesn't see how it will provide the needed funds for the state's transportation system.
"That's a good mid- to long-term solution, but we still need something in the next six months," Rice told the Rocky. "And I don't know how you get away from fees not being a part of that."
The limit on the growth of the state's general fund is six percent per year. It was established in 1992 and provides that money over the limit can be spent on transportation and capital improvements.
Retired state supreme court justice Jean Dubofsky recently said that she believes the Arveschoug-Bird limit is not a constitutional constraint on spending, even though the 1992 Taxpayers Bill of Rights appears to place spending limits in the state's legal charter.
Sen. John Morse, D-Colorado Springs, and Rep. Don Marostica, R-Loveland, cited that opinion in comments last week indicating they would introduce legislation to repeal the Arveschoug-Bird law limiting annual growth in the general fund.
The proposal, which House minority leader Mike May, R-Parker, announced today, comes in the wake of the Senate's approval Thursday of the FASTER bill.
FASTER would result in the average person's motor vehicle registration fee rising by about $40 and provide more than $200 million per year for needed highway and bridge repairs and improvements throughout the state.
May also said Republicans want a portion of the state's general fund dedicated to transportation.
""Traditionally, Republicans have said: 'Thou shalt not touch the 6 percent limit,' " May is quoted as saying in a Rocky Mountain News article. "The important thing (about the new proposal) is it provides a predictable and continuous revenue stream for transportation."
The Democratic House sponsor of the bill, Rep. Joe Rice of Littleton, said he welcomes May's idea but doesn't see how it will provide the needed funds for the state's transportation system.
"That's a good mid- to long-term solution, but we still need something in the next six months," Rice told the Rocky. "And I don't know how you get away from fees not being a part of that."
The limit on the growth of the state's general fund is six percent per year. It was established in 1992 and provides that money over the limit can be spent on transportation and capital improvements.
Retired state supreme court justice Jean Dubofsky recently said that she believes the Arveschoug-Bird limit is not a constitutional constraint on spending, even though the 1992 Taxpayers Bill of Rights appears to place spending limits in the state's legal charter.
Sen. John Morse, D-Colorado Springs, and Rep. Don Marostica, R-Loveland, cited that opinion in comments last week indicating they would introduce legislation to repeal the Arveschoug-Bird law limiting annual growth in the general fund.
Tuesday, January 27, 2009
Ritter Suggests More Cuts for FY09-10
Gov. Bill Ritter delivered more bad budget news to the legislature today as his budget director told members of the Joint Budget Committee that the state should close two prisons, eliminate $225 million of higher education and public school spending and take away, at least temporarily, property tax breaks for senior citizens.
The proposal, which was offered as a way of closing the $1 billion budget gap expected in the fiscal year that begins July 1, was announced by Todd Saliman.
The cuts, which would not allow the state to close the entire shortfall, would represent an 8.7 percent reduction from the general fund spending for FY 09-10 proposed by Ritter in November.
"Through this package of cuts today, there will be pain," Office of State Planning and Budgeting director Todd Saliman told the committee. "And it will be felt by many citizens who rely on state services."
The two prisons that Ritter wants to close are the Rifle Correctional Facility and the Colorado Women's Correctional Facility in Canon City. Inmates at those penitentiaries would be transferred to other state prisons.
The governor's plan would also delay the opening of the Colorado State Penitentiary II in Canon City by at least three months.
The education funding reductions would be divided up almost equally between the state's universities and colleges and K-12 institutions. Saliman said Ritter wants to cut $125 million from K-12 education and $100 million from higher education.
The K-12 cuts would include suspension of a second enrollment count for military dependents, which could cost school districts as much as $1.8 million per year, a reduction of $2.5 million in charter school construction assistance, and a reduction of $17.9 million in the planned expansion of Colorado's full-day kindergarten program.
The $100 million cut to higher education would include the $30 million cut for this year proposed Dec. 16. If approved, the total reduction would return state funding for colleges and universities to where it was in FY 07-08.
Among other spending cuts proposed by the governor are:
1. Closure of the 20-bed general hospital at the Colorado Mental Health Institute at Pueblo effective Nov. 1, 2009, which would save $4.8 million including $3.1 from the general fund and eliminate 54 full-time equivalent state employees (FTEs);
2. Closure of the 20-bed Therapeutic Child Care Facility at Fort Logan effective July 1, which would save $2.1 million, including $417,000 from the general fund, and eliminate 30 FTEs;
3. Reduction of an earlier request for increased funding for developmental disability services, which would save $3.4 million including $1.7 million from the general fund;
4. Reduction of Medicaid expenditures, health care provider rates and reimbursement obligations, which would save approximately $150 million including about $70 million from the general fund;
5. Suspension of efforts to increase enrollment in, and reduce funding for, the Children's Basic Health Plan Plus (CHP), which would save $19.3 million including $3.1 million from the general fund;
6. Elimination of all funding for the Colorado Student Before and After School Program, which would save $300,000;
7. Imposition of five unpaid furlough days on most of the state's workforce, for a $15 million savings, including $7.6 million from the general fund, and authorization for a maximum of three furlough days in FY08-09;
8. Elimination of 540 state jobs;
9. Suspension of salary increases for 26,000 state employees; and
10. Reduction of state tourism promotion spending by about half.
The proposal would not continue the limited hiring freeze now in effect.
The temporary elimination of the property tax exemption enjoyed by senior citizens would also affect disabled veterans. Only seniors and disabled veterans who have lived in their homes for at least ten years are currently able to take advantage of the state's homestead tax exemption.
Additional revenues would be gained by re-instituting the state's $10-15 user fee for the Colorado Bureau of Investigation's "InstaCheck" background check service, which would add $1.6 million to the general fund each year.
Ritter said his suggestions are aimed at minimizing harm to Colorado residents dependent on state services.
"On Jan. 15, my office began submitting a budget-balancing plan to the Joint Budget Committee, and today we are proposing additional steps that include deep, targeted and strategic cuts," the governor said in a press release. "These reductions, along with the latest unemployment figures released this morning, should leave no doubt in anyone's mind about the seriousness of the problems we face, and of the collective effort it will take to chart a Colorado way forward."
If the legislature adopts Ritter's suggestions, the total spending from the state's general fund in FY 09-10 would be nearly the same as it was in FY 07-08.
The governor's push for a spending plan lower than what he originally asked for Nov. 1 is driven by recent projections indicating that Colorado's sales and income tax revenues will be about $1 billion less in FY 09-10 than budget planners thought last autumn.
Ritter's plan for FY 09-10 assumes that the federal government will direct at least $259 million to Colorado through the proposed American Recovery and Reinvestment Act, which is now under consideration in Congress.
The General Assembly will begin considering Ritter's ideas for the FY 09-10 budget, as well as the cuts in spending and diversions from reserve and cash funds proposed on Jan. 16 for the current fiscal year, sometime in February.
The proposal, which was offered as a way of closing the $1 billion budget gap expected in the fiscal year that begins July 1, was announced by Todd Saliman.
The cuts, which would not allow the state to close the entire shortfall, would represent an 8.7 percent reduction from the general fund spending for FY 09-10 proposed by Ritter in November.
"Through this package of cuts today, there will be pain," Office of State Planning and Budgeting director Todd Saliman told the committee. "And it will be felt by many citizens who rely on state services."
The two prisons that Ritter wants to close are the Rifle Correctional Facility and the Colorado Women's Correctional Facility in Canon City. Inmates at those penitentiaries would be transferred to other state prisons.
The governor's plan would also delay the opening of the Colorado State Penitentiary II in Canon City by at least three months.
The education funding reductions would be divided up almost equally between the state's universities and colleges and K-12 institutions. Saliman said Ritter wants to cut $125 million from K-12 education and $100 million from higher education.
The K-12 cuts would include suspension of a second enrollment count for military dependents, which could cost school districts as much as $1.8 million per year, a reduction of $2.5 million in charter school construction assistance, and a reduction of $17.9 million in the planned expansion of Colorado's full-day kindergarten program.
The $100 million cut to higher education would include the $30 million cut for this year proposed Dec. 16. If approved, the total reduction would return state funding for colleges and universities to where it was in FY 07-08.
Among other spending cuts proposed by the governor are:
1. Closure of the 20-bed general hospital at the Colorado Mental Health Institute at Pueblo effective Nov. 1, 2009, which would save $4.8 million including $3.1 from the general fund and eliminate 54 full-time equivalent state employees (FTEs);
2. Closure of the 20-bed Therapeutic Child Care Facility at Fort Logan effective July 1, which would save $2.1 million, including $417,000 from the general fund, and eliminate 30 FTEs;
3. Reduction of an earlier request for increased funding for developmental disability services, which would save $3.4 million including $1.7 million from the general fund;
4. Reduction of Medicaid expenditures, health care provider rates and reimbursement obligations, which would save approximately $150 million including about $70 million from the general fund;
5. Suspension of efforts to increase enrollment in, and reduce funding for, the Children's Basic Health Plan Plus (CHP), which would save $19.3 million including $3.1 million from the general fund;
6. Elimination of all funding for the Colorado Student Before and After School Program, which would save $300,000;
7. Imposition of five unpaid furlough days on most of the state's workforce, for a $15 million savings, including $7.6 million from the general fund, and authorization for a maximum of three furlough days in FY08-09;
8. Elimination of 540 state jobs;
9. Suspension of salary increases for 26,000 state employees; and
10. Reduction of state tourism promotion spending by about half.
The proposal would not continue the limited hiring freeze now in effect.
The temporary elimination of the property tax exemption enjoyed by senior citizens would also affect disabled veterans. Only seniors and disabled veterans who have lived in their homes for at least ten years are currently able to take advantage of the state's homestead tax exemption.
Additional revenues would be gained by re-instituting the state's $10-15 user fee for the Colorado Bureau of Investigation's "InstaCheck" background check service, which would add $1.6 million to the general fund each year.
Ritter said his suggestions are aimed at minimizing harm to Colorado residents dependent on state services.
"On Jan. 15, my office began submitting a budget-balancing plan to the Joint Budget Committee, and today we are proposing additional steps that include deep, targeted and strategic cuts," the governor said in a press release. "These reductions, along with the latest unemployment figures released this morning, should leave no doubt in anyone's mind about the seriousness of the problems we face, and of the collective effort it will take to chart a Colorado way forward."
If the legislature adopts Ritter's suggestions, the total spending from the state's general fund in FY 09-10 would be nearly the same as it was in FY 07-08.
The governor's push for a spending plan lower than what he originally asked for Nov. 1 is driven by recent projections indicating that Colorado's sales and income tax revenues will be about $1 billion less in FY 09-10 than budget planners thought last autumn.
Ritter's plan for FY 09-10 assumes that the federal government will direct at least $259 million to Colorado through the proposed American Recovery and Reinvestment Act, which is now under consideration in Congress.
The General Assembly will begin considering Ritter's ideas for the FY 09-10 budget, as well as the cuts in spending and diversions from reserve and cash funds proposed on Jan. 16 for the current fiscal year, sometime in February.
Monday, January 19, 2009
Post Reports Heath Will Lead Charge Against TABOR
The Denver Post is reporting that freshman Democratic Sen. Rollie Heath of Boulder is leading an effort by several legislators to revamp the state's Taxpayers Bill of Rights.
According to the article,
Republican senators attacked the idea of re-visiting TABOR, pointing out that the voters' defeat of Amendment 59 in November indicates that the electorate is not interested in permanently loosening the revenue limits imposed by TABOR.
"At this point you have to ask, what part of 'no' don't some people understand?" Sen. Keith King, R-Colorado Springs, said. "We are in the middle of a deepening recession right now anyway, and I cannot imagine this is the top issue for most Coloradans."
Amendment 59 would have retained TABOR's requirement that tax increases be approved by voters and made permanent the relief from revenue caps authorized by 2005's Referendum C.
Senate minority leader Josh Penry, R-Fruita, pointed out that Republicans don't believe the state's budget crisis is tied to TABOR in any case.
"TABOR has zero impact on the budget cuts we will be forced to make this year," Penry told the Post. "Those are due entirely to the economy."
But at least some Democrats think tough economic times might be the most appropriate occasion to ask voters to re-think TABOR.
"There are those of us who say, 'Why don't we, while there isn't a TABOR refund, look at floating an issue back to the voters,'" House majority leader Paul Weissman, D-Louisville, told the Post.
A spokesperson for Gov. Bill Ritter has confirmed that Ritter's aides have discussed TABOR changes with legislators. The governor himself suggested it during his State of the State address earlier this month.
TABOR was added to the state constitution in 1992.
According to the article,
Last week several lawmakers — including Heath, House Majority Leader Paul Weissmann, D-Louisville, and Sen. Al White, R-Hayden — held a meeting about what to do with TABOR. Heath described the meeting as a "free-flowing conversation" in which the participants agreed on the need to do something.
"But that something is nowhere near decided," he said.
"We were just kicking it around philosophically to see what kind of coalition might be out there," White said.
Republican senators attacked the idea of re-visiting TABOR, pointing out that the voters' defeat of Amendment 59 in November indicates that the electorate is not interested in permanently loosening the revenue limits imposed by TABOR.
"At this point you have to ask, what part of 'no' don't some people understand?" Sen. Keith King, R-Colorado Springs, said. "We are in the middle of a deepening recession right now anyway, and I cannot imagine this is the top issue for most Coloradans."
Amendment 59 would have retained TABOR's requirement that tax increases be approved by voters and made permanent the relief from revenue caps authorized by 2005's Referendum C.
Senate minority leader Josh Penry, R-Fruita, pointed out that Republicans don't believe the state's budget crisis is tied to TABOR in any case.
"TABOR has zero impact on the budget cuts we will be forced to make this year," Penry told the Post. "Those are due entirely to the economy."
But at least some Democrats think tough economic times might be the most appropriate occasion to ask voters to re-think TABOR.
"There are those of us who say, 'Why don't we, while there isn't a TABOR refund, look at floating an issue back to the voters,'" House majority leader Paul Weissman, D-Louisville, told the Post.
A spokesperson for Gov. Bill Ritter has confirmed that Ritter's aides have discussed TABOR changes with legislators. The governor himself suggested it during his State of the State address earlier this month.
TABOR was added to the state constitution in 1992.
Friday, January 16, 2009
Ritter Tells Legislators His Ideas For Cuts
Gov. Bill Ritter's budget director told the Joint Budget Committee today that the administration thinks most of the state's expected $600 million budget shortfall this fiscal year can be closed by moving money around.
Todd Saliman said the General Assembly should authorize $289.7 million in diversions and transfers from cash funds to the state's general fund and tap Colorado's emergency reserve for $134.1 million.
Among the cash fund transfers would be $11.9 million in casino revenues.
The remaining $201.1 million needed to close the gap would come from spending cuts.
"The governor's plan is to try to fairly distribute the pain across the entire state government," Saliman said in his comments to the committee, which will recommend measures needed to balance the state's budget to the entire legislature later in the session.
Ritter's office said that most of the spending cuts would come from executive agencies and programs but that more than $34 million should be taken from the state's contribution to the Police and Fire Pension Association of Colorado.
Included among the programs facing spending reductions or elimination is the full-day kindergarten program authorized by the General Assembly last year, which is one of the governor's major educational priorities.
Saliman said that the legislature should eliminate $34.5 million dedicated this year to construction projects relating to full-day kindergarten services.
Other cuts affecting public education would include, if Ritter's suggestions are taken, $4.9 million from charter school construction, $1.8 million from payments to school districts for military dependent enrollment, $1 million from grants that finance alternative teacher compensation plans, and $973,000 from grants to finance summer school programs.
Higher education would take a $30 million hit, which Ritter's office said would nevertheless result in a $90 million increase in spending on colleges and universities since the beginning of FY 2007.
The governor's goal of increasing health insurance coverage to low-income children would suffer a significant setback as well, as Saliman told the committee that Ritter's plan would drop the planned expansion of Children’s Basic Health Plan (CHP) eligibility from 205 percent of the federal poverty level to 225 percent of that benchmark for children and pregnant women. This cut would save $3.1 million this year and $13.6 million next year, according to a press release issued by the governor's office.
The balancing plan also would reduce various health care provider rates, saving $21.7 million.
Ritter will also ask the legislature to cap the amount of sales tax revenues businesses can keep to cover expenses at $5,000. Under current law vendors are allowed to retain 3.5% of sales tax revenues. Saliman said this change would affect 1.9% of the state's businesses and save the general fund $12.8 million.
The governor on Oct. 1 instituted a limited executive branch hiring freeze and suspended ongoing construction projects financed by the general fund. The governor's office says those actions have thus far saved the state $62.5 million.
Saliman said the governor would freeze an additional 64 construction projects, saving an additional $43.4 million.
The budget director also said that Ritter suggests avoidance of reductions in the state's emergency reserve and cancellation of diversions and transfers from cash funds if Congress enacts a federal financial bailout plan for states in the coming months.
Ritter acknowledged today that the choices available to lawmakers are less than ideal.
“My top priorities will be protecting life, safety and public health, ensuring that we are able to meet our safety-net obligations, and that we try to preserve much of the progress we’ve made in areas such as higher education the past two years,” Ritter said. “There will be no more challenging task this legislative session than responsibly, thoughtfully and collectively balancing the budget. Colorado’s budget has always been frugal and tight, and our options are much more limited than during the last recession."
Ritter's recommendations for closing the shortfall expected in FY 2009 are to be presented Jan. 23, according to a press release issued by the governor's office.
Todd Saliman said the General Assembly should authorize $289.7 million in diversions and transfers from cash funds to the state's general fund and tap Colorado's emergency reserve for $134.1 million.
Among the cash fund transfers would be $11.9 million in casino revenues.
The remaining $201.1 million needed to close the gap would come from spending cuts.
"The governor's plan is to try to fairly distribute the pain across the entire state government," Saliman said in his comments to the committee, which will recommend measures needed to balance the state's budget to the entire legislature later in the session.
Ritter's office said that most of the spending cuts would come from executive agencies and programs but that more than $34 million should be taken from the state's contribution to the Police and Fire Pension Association of Colorado.
Included among the programs facing spending reductions or elimination is the full-day kindergarten program authorized by the General Assembly last year, which is one of the governor's major educational priorities.
Saliman said that the legislature should eliminate $34.5 million dedicated this year to construction projects relating to full-day kindergarten services.
Other cuts affecting public education would include, if Ritter's suggestions are taken, $4.9 million from charter school construction, $1.8 million from payments to school districts for military dependent enrollment, $1 million from grants that finance alternative teacher compensation plans, and $973,000 from grants to finance summer school programs.
Higher education would take a $30 million hit, which Ritter's office said would nevertheless result in a $90 million increase in spending on colleges and universities since the beginning of FY 2007.
The governor's goal of increasing health insurance coverage to low-income children would suffer a significant setback as well, as Saliman told the committee that Ritter's plan would drop the planned expansion of Children’s Basic Health Plan (CHP) eligibility from 205 percent of the federal poverty level to 225 percent of that benchmark for children and pregnant women. This cut would save $3.1 million this year and $13.6 million next year, according to a press release issued by the governor's office.
The balancing plan also would reduce various health care provider rates, saving $21.7 million.
Ritter will also ask the legislature to cap the amount of sales tax revenues businesses can keep to cover expenses at $5,000. Under current law vendors are allowed to retain 3.5% of sales tax revenues. Saliman said this change would affect 1.9% of the state's businesses and save the general fund $12.8 million.
The governor on Oct. 1 instituted a limited executive branch hiring freeze and suspended ongoing construction projects financed by the general fund. The governor's office says those actions have thus far saved the state $62.5 million.
Saliman said the governor would freeze an additional 64 construction projects, saving an additional $43.4 million.
The budget director also said that Ritter suggests avoidance of reductions in the state's emergency reserve and cancellation of diversions and transfers from cash funds if Congress enacts a federal financial bailout plan for states in the coming months.
Ritter acknowledged today that the choices available to lawmakers are less than ideal.
“My top priorities will be protecting life, safety and public health, ensuring that we are able to meet our safety-net obligations, and that we try to preserve much of the progress we’ve made in areas such as higher education the past two years,” Ritter said. “There will be no more challenging task this legislative session than responsibly, thoughtfully and collectively balancing the budget. Colorado’s budget has always been frugal and tight, and our options are much more limited than during the last recession."
Ritter's recommendations for closing the shortfall expected in FY 2009 are to be presented Jan. 23, according to a press release issued by the governor's office.
Tuesday, January 6, 2009
GOP Announces Budget Task Force
Citing an impending budget crisis, the legislature's minority Republicans announced today that they would create a "task force" to examine priorities and potential solutions to the state's anticipated budget shortfall.
According to recent estimates Colorado could face a $600 million difference between revenues and budgeted expenditures this fiscal year.
“The state budget and the economy will be the number one issues we face this year in the Legislature,” House minority leader Mike May of Parker said. “That is why we are putting together a task force to examine the issues and come up with workable solutions.”
Joining May on the task force will be GOP Reps. Don Marostica of Loveland, Kent Lambert of Colorado Springs, Cory Gardner of Yuma and Ellen Roberts of Durango.
Republican lawmakers plan to use the recommendations developed by the GOP panel mambers to argue for passage of a "responsible budget that reflects the values of Colorado families," according to a press release issued by the House GOP communications office.
The party's statehouse press office declined to say whether the GOP expects majority Democrats to give serious consideration to Republican budget proposals.
The state's budget is written by the bipartisan Joint Budget Committee of the General Assembly.
According to recent estimates Colorado could face a $600 million difference between revenues and budgeted expenditures this fiscal year.
“The state budget and the economy will be the number one issues we face this year in the Legislature,” House minority leader Mike May of Parker said. “That is why we are putting together a task force to examine the issues and come up with workable solutions.”
Joining May on the task force will be GOP Reps. Don Marostica of Loveland, Kent Lambert of Colorado Springs, Cory Gardner of Yuma and Ellen Roberts of Durango.
Republican lawmakers plan to use the recommendations developed by the GOP panel mambers to argue for passage of a "responsible budget that reflects the values of Colorado families," according to a press release issued by the House GOP communications office.
The party's statehouse press office declined to say whether the GOP expects majority Democrats to give serious consideration to Republican budget proposals.
The state's budget is written by the bipartisan Joint Budget Committee of the General Assembly.
Thursday, October 23, 2008
Ritter, Kennedy Say Hundreds of Millions of Dollars Are Available for Higher Ed Construction
Gov. Bill Ritter and state treasurer Cary Kennedy are expected to announce today that the state's colleges and universities will have more than $200 million available for 12 construction projects.
The state raised the money through sales of "Certificates of Participation" Wednesday and today.
The construction projects, authorized by SB 08-218, SB 08-233 and HJR 08-1042, are:
1. University of Northern Colorado: Butler-Hancock Renovation
2. Colorado Northwestern Community College: Academic Building, Craig Campus
3. Colorado State University at Pueblo: Academic Resources Center Remodel
4. Colorado School of Mines: Brown Hall Addition
5. CSU Fort Collins: Clark Building Revitalization
6. Auraria Higher Education Campus: Science Building
7. Western State College: Taylor Hall Renovation and Addition
8. Mesa State College: Wubben Hall Expansion and Renovation
9. University of Colorado at Colorado Springs: Renovation of Science Building
10. Morgan Community College: Nursing, Technology & Science Building
11. Front Range Community College, Larimer Campus: Science Classroom Project
12. Fort Lewis College: Berndt Hall Reconstruction
The state raised the money through sales of "Certificates of Participation" Wednesday and today.
The construction projects, authorized by SB 08-218, SB 08-233 and HJR 08-1042, are:
1. University of Northern Colorado: Butler-Hancock Renovation
2. Colorado Northwestern Community College: Academic Building, Craig Campus
3. Colorado State University at Pueblo: Academic Resources Center Remodel
4. Colorado School of Mines: Brown Hall Addition
5. CSU Fort Collins: Clark Building Revitalization
6. Auraria Higher Education Campus: Science Building
7. Western State College: Taylor Hall Renovation and Addition
8. Mesa State College: Wubben Hall Expansion and Renovation
9. University of Colorado at Colorado Springs: Renovation of Science Building
10. Morgan Community College: Nursing, Technology & Science Building
11. Front Range Community College, Larimer Campus: Science Classroom Project
12. Fort Lewis College: Berndt Hall Reconstruction
Thursday, October 16, 2008
Ritter: No Performance Pay for State Employees
Gov. Bill Ritter had bad news for state employees today.
The state's chief executive announced today that he will recommend to the General Assembly's Joint Budget Committee in November that state employees not receive performance-pay salary increases in FY 2009.
The move would save taxpayers $36 million and affect more than 26,000 state employees.
“By withholding performance-pay increases, tens of thousands of state employees are being asked to help serve as responsible stewards of taxpayer funds," Ritter said. "This is a pro-active and precautionary step that will give us even greater flexibility should we need to take additional budget-saving measures down the road.”
Performance-pay increases, first initiated in FY 2002, are based on employees’ on-the-job achievements. They supplement more standard salary increases that are based on market surveys.
Prior to FY 2002 state employees received annual pay increases based on the market surveys plus an automatic five percent increase after five years of service and another five percent increase after 10 years of service.
Since their inception performance pay increases have not been granted for budgetary reasons in fiscal years 2003, 2005 and 2006. In the years that performance-based pay increases were granted, they have ranged from one-half of one percent to five percent. Salary-survey-based pay increases have ranged from 2-3.8 percent during the past few years.
Ritter’s Office of State Planning and Budgeting estimates a general fund savings of $21 million, plus another $15 million from outside the general fund, by forgoing performance-based pay increases in FY 2009, which starts July 1, 2009.
The governor's proposed FY 2009 budget proposal is scheduled to be submitted to the Joint Budget Committee on Nov. 1.
The state's chief executive announced today that he will recommend to the General Assembly's Joint Budget Committee in November that state employees not receive performance-pay salary increases in FY 2009.
The move would save taxpayers $36 million and affect more than 26,000 state employees.
“By withholding performance-pay increases, tens of thousands of state employees are being asked to help serve as responsible stewards of taxpayer funds," Ritter said. "This is a pro-active and precautionary step that will give us even greater flexibility should we need to take additional budget-saving measures down the road.”
Performance-pay increases, first initiated in FY 2002, are based on employees’ on-the-job achievements. They supplement more standard salary increases that are based on market surveys.
Prior to FY 2002 state employees received annual pay increases based on the market surveys plus an automatic five percent increase after five years of service and another five percent increase after 10 years of service.
Since their inception performance pay increases have not been granted for budgetary reasons in fiscal years 2003, 2005 and 2006. In the years that performance-based pay increases were granted, they have ranged from one-half of one percent to five percent. Salary-survey-based pay increases have ranged from 2-3.8 percent during the past few years.
Ritter’s Office of State Planning and Budgeting estimates a general fund savings of $21 million, plus another $15 million from outside the general fund, by forgoing performance-based pay increases in FY 2009, which starts July 1, 2009.
The governor's proposed FY 2009 budget proposal is scheduled to be submitted to the Joint Budget Committee on Nov. 1.
Friday, September 26, 2008
Judicial Branch Imposes Hiring Freeze, Too
The Colorado Judicial Branch today announced that it, too, will reduce spending this fiscal year by imposing a statewide hiring freeze.
Judicial Branch managers will be permitted to finalize the hiring process only if a candidate has been offered and accepted a position by Oct. 3. Positions determined to have a direct and immediate effect on public safety, or the effective operation of the courts, may be approved for hire on an individual basis.
“As one of the three co-equal branches of government, we are always mindful of the need to ensure taxpayers’ funds are used in the most effective and efficient manner possible,” Chief Justice Mary Mullarkey said. “Careful stewardship of those funds, particularly with thought to the future, becomes even more important in these difficult economic times."
The freeze takes effect Oct. 3.
Judicial Branch managers will be permitted to finalize the hiring process only if a candidate has been offered and accepted a position by Oct. 3. Positions determined to have a direct and immediate effect on public safety, or the effective operation of the courts, may be approved for hire on an individual basis.
“As one of the three co-equal branches of government, we are always mindful of the need to ensure taxpayers’ funds are used in the most effective and efficient manner possible,” Chief Justice Mary Mullarkey said. “Careful stewardship of those funds, particularly with thought to the future, becomes even more important in these difficult economic times."
The freeze takes effect Oct. 3.
Wednesday, September 24, 2008
Republicans Want End to State Hiring
Legislative Republicans again leaped on the political opportunity provided by a recent pessimistic economic forecast, calling on Gov. Bill Ritter to suspend all hiring by state agencies.
The comments by members of the capitol's GOP caucuses follows the release earlier this week of an economic forecast by the Office of Legislative Council, which shows that the state will have about $300 million less in revenue this fiscal year than had been anticipated when the annual budget was adopted by the General Assembly last spring.
"Republicans voted against the budget because it was flat-out irresponsible to hire new government employees during tenuous economic times," said Sen. Josh Penry, R-Fruita. "Every dollar the governor spends growing government payroll is a dollar that will be cut from higher education, transportation or health care programs."
Other Republicans pointed out the precedent set by former Gov. Bill Owens.
"We've been down this road before, and Gov. Owens took bold steps during the interim to put the brakes on government spending," Sen. Greg Brophy, R-Wray, said.
About 2,500 people have been added to the state payroll since Ritter became governor, according to a GOP news release.
Spokespersons for the Senate and House Democratic caucuses or for the governor were not available to comment on the GOP request for a hiring freeze.
The comments by members of the capitol's GOP caucuses follows the release earlier this week of an economic forecast by the Office of Legislative Council, which shows that the state will have about $300 million less in revenue this fiscal year than had been anticipated when the annual budget was adopted by the General Assembly last spring.
"Republicans voted against the budget because it was flat-out irresponsible to hire new government employees during tenuous economic times," said Sen. Josh Penry, R-Fruita. "Every dollar the governor spends growing government payroll is a dollar that will be cut from higher education, transportation or health care programs."
Other Republicans pointed out the precedent set by former Gov. Bill Owens.
"We've been down this road before, and Gov. Owens took bold steps during the interim to put the brakes on government spending," Sen. Greg Brophy, R-Wray, said.
About 2,500 people have been added to the state payroll since Ritter became governor, according to a GOP news release.
Spokespersons for the Senate and House Democratic caucuses or for the governor were not available to comment on the GOP request for a hiring freeze.
Monday, September 22, 2008
Senate GOP Crows Over 3Q Revenue Forecast
Republicans at the statehouse took the opportunity afforded by a somewhat pessimistic third quarter revenue forecast to criticize Democrats' budget policies today, knocking the majority party for launching a "runaway train of spending."
The GOP's main complaint is the loss of more than $200 million that would have gone to highways. A recent report from the Office of Legislative Council indicates that only about $28 million left over from last fiscal year will be available for that purpose this year.
"We tried and tried to get them to not spend every dime that was forecast," said Senate GOP leader Andy McElhany of Colorado Springs. "We saw the gathering storm of recession, but they didn't see a cloud on the horizon."
No spokesperson for the Democratic caucuses in the House or Senate was available to comment on the Republican legislators' accusations.
The GOP's main complaint is the loss of more than $200 million that would have gone to highways. A recent report from the Office of Legislative Council indicates that only about $28 million left over from last fiscal year will be available for that purpose this year.
"We tried and tried to get them to not spend every dime that was forecast," said Senate GOP leader Andy McElhany of Colorado Springs. "We saw the gathering storm of recession, but they didn't see a cloud on the horizon."
No spokesperson for the Democratic caucuses in the House or Senate was available to comment on the Republican legislators' accusations.
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