Press Release: Gov. Ritter Submits Lean FY10-11 Budget
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OFFICE OF GOV. BILL RITTER, JR.
WWW.COLORADO.GOV/GOVERNOR
FOR IMMEDIATE RELEASE
FRIDAY, NOV. 6, 2009
CONTACTS
Evan Dreyer, 720.350.8370, evan.dreyer@state.co.us
Megan Castle, 303.319.8513, megan.castle@state.co.us
CALLING FOR SHARED SACRIFICE, GOV. RITTER SUBMITS LEAN FY10-11 BUDGET
Calling for shared sacrifice, Gov. Bill Ritter today submitted a $7.1 billion FY10-11 General Fund budget proposal to the legislature's Joint Budget Committee, closing a $1 billion shortfall that holds down spending to reflect weak revenue.
"While we've already closed unprecedented shortfalls, the budget I'm submitting today is our most challenging yet," Gov. Ritter said. "I'm continuing to make tough choices from very limited options -- even while the demand for many services is skyrocketing.
"We're asking everyone to share in the sacrifice, from schools to businesses to state workers," the Governor said. "This is a fair and balanced budget. In this new economic reality, the budget continues the cost-cutting and streamlining that's been underway for over a year. It does so in a way that minimizes pain, protects public safety, maintains essential services and preserves programs that promote job-creation and economic growth.
"The budget also reflects that we're continuing to fundamentally re-think the way government does business, that we're making government leaner, more nimble and more efficient."
Despite ongoing shortfalls, Gov. Ritter has protected important programs that will lead to a stronger Colorado, such as pre-school and full-day kindergarten, job-creation and business development, transportation and anti-recidivism programs in the prison system.
Over the past 13 months, Gov. Ritter and the legislature have closed shortfalls for FY09-10 of $2 billion in the face of declining revenues caused by the global recession. In effect, the FY10-11 budget required the closing of a $1 billion shortfall to remain balanced in part because of mandated cost increases in areas such as Medicaid and prisons.
Gov. Ritter will present the proposed budget to the JBC on Tuesday. The plan calls for:
- A $260 million, or 4.6 percent, cut to K-12 education total program funding from the original FY09-10 appropriation of $5.6 billion, while still preserving pre-school and full-day kindergarten programs.
- Adjustments and temporary suspensions of 13 of the state's 100 special tax credits and exemptions, providing $131.8 million in revenue.
- A 2.5 percent, one-time cut to total employee compensation for about 25,000 state employees, saving $20.1 million. This follows no pay raises and eight unpaid furlough days for employees in FY09-10.
- A $56 million reduction to Recovery Act funding for higher education.
- Suspending the Senior Homestead Exemption for a second year in a row, saving nearly $100 million.
- Reducing some programs funded by gambling revenue by 50 percent, saving $20 million. This reduction still allows for $10.2 million tourism and promotion.
- A $28 million cut to Medicaid, even while Medicaid caseloads have increased a record 45 percent the past three years. Medicaid is project to serve more than 550,000 Coloradans in FY10-11.
- A $25.7 million transfer from the Amendment 35 tobacco cash fund to the General Fund, still maintaining $17.3 million for grant programs.
- A $1.03 billion request for transportation, a 6 percent increase from this year's $973.5 million.
- A $6.4 million request in the construction budget to draw down more than $11 million in federal funds to build three new National Guard armories in Grand Junction, Windsor and Alamosa.
"When I took office three years ago, we set about changing Colorado, making us a leader in the New Energy Economy, in improving our education system, and in growing a modern, 21st century economy," Gov. Ritter said.
"The budget I'm submitting today will allow us to continue making those changes, to continue finding new and innovative ways of doing business, and to continue to be stubborn about creating a better future for our children and our grandchildren.
"Like families and businesses in every corner of the state, we have to live within our budget. But our commitment, our goals and our strategies for helping families, for creating the best schools in the country and for keeping our small businesses competitive remain as ambitious as ever."