Budget update
This week, Governor Ritter announced $60 million in additional cuts to bridge the latest gap in the state’s annual budget.
Because Colorado didn’t receive as much federal Medicaid money as it had expected-we received $144 million rather than the $212 the state had hoped for-Governor Ritter and his team had to come up with $60 million in budget cuts, in addition to those already conducted this year.
With limited options outside of the legislative session, the solution relies heavily on cash funds, including $9 million from the state’s Medical Marijuana Program Cash fund as well as $6.2 million in cuts from spending from the General Fund and a $53.4 million transfer from various cash funds.
Governor Ritter’s plan will save $4.9 million from a 1 percent reduction in payroll costs by not filling vacant positions as well as through cuts to the Department of Corrections. Nearly $41 million of the stop-gap actions comes from oil-and gas-related funds originally intended for local communities and higher education.
Not using that money, he said, would have led to cuts in other places, including taking teachers out of classrooms. “Truly, we find ourselves in difficult, difficult budget circumstances,” he said.
We hope these latest adjustments-described by Governor Ritter as preserving essential services and requiring a collective commitment-will be the last needed for this fiscal year. The next revenue forecast will come in September, which will be used to shape the FY 2011-12 budget request.
So, we now begin to focus on the next year, when our state will face a budget deficit that has been estimated as high as $1 billion. Closing that gap will require even more sacrifices, tough choices and thoughtful leadership.
As business leaders, we will do all we can to share information and help ensure these budget decisions don’t further challenge the business community’s ability to grow our economy and jobs.
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