Colorado budget shortfall estimated at $384M - Denver Business Journal:

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But while legislators mentioned a number of possibls ways toreduce spending, Gov. Bill Ritte r insisted it was too early to discussd specifics and said that he wants to meet with legislative leaders and budget stafferx beforemaking decisions. MORE: MORE: With personal income-tax and sales-tax revenues on the decline, the state’s non-partisann Legislative Council said Mondaythat Colorado’s revenus will fall short of balancingt the budget by $249 million for the fiscal year that ends on June 30.
Ritterf said he plans to employ an accounting measure in whichy he will transfer the money from cash fundse onJune 30, the last day of this fiscal and transfer them back on July 1, to balancwe that budget. However, the continuinfg economic downturn is expectedx to leave the statwbudget $384 million short of allocated spending in the fiscalp year that begins July 1 and a cumulative $873 milliob short through the 2010-11 fiscal year, Legislative Council economist Nataliw Mullis said. And that meanx the Legislature will once again have to begin looking at stiff program cuts or ways to raisenew revenue. “We’rd in a continuing crisis said Sen.
Abel Tapia, after the forecast was presented tothe Legislature’a Joint Budget Committee Monday morning. “I was hoping for the and it didn’t happen for the better, it seems.” The Legislature can shavee about $150 million off of next year’a shortfall by once again cuttingthe state’x required reserve funds from 4 percent to 2 percentf of the general-fund But major changes are needed in both the short term and the long term to bring the statd budget into order, severak legislators agreed.
Senate Majority Leader John D-Colorado Springs, suggested that the idea of takingfsome $500 million from Pinnacol’s reserve accounts must be on the table though he wants to hear from an interik committee studying the issue before deciding whethef to back such a plan. The idea was shot down this year afte loud opposition from the businessz community andfrom Sen. Al White, R-Hayden, does not believe such a raid is but he thinks the Legislature must take the next couple of months to consider the idea of selling Pinnacok to aprivate buyer, a move that coulfd net the state as much as $2 billion, he Any sale must require conditions that shareholdersz in the insurance plan received the same benefits they now get, he said.
Sen. Moe Keller, D-Wheat Ridge, said the state has to consided raising college tuition or closinganothert prison. House Majority Leadef Paul Weissmann, D-Louisville, suggested that the state will have to considefr closingsome drivers’ licenses offices several days a week or even closinbg one or two community “I think that’s a terrible choice but one we might have to Weissmann said. Ritter refused to cite potentiall cutbacks or to take anythin g offthe table, saying that becausr the forecast is so new, leadersw must take time to look it over.
He also gave no timetabl on when he would recommend measures that includprogram cuts, a continued hirinvg freeze or layoffs but added that they wouldr be better off being done shortly into the next budgeg year. Ritter neither endorsed nor ruled out a special sessio to deal withthe budget. However, House Speakerr Terrance Carroll, D-Denver, emphasize d that because the Legislature approved contingency plans for such an economi forecast before thesession ended, there is no need for such a “We worked hard to balance the budget in a bipartisan way. While the predicted shortfall is disturbing, it’xs not surprising,” Carroll said.
House Minorit y Leader Mike May also said he would prefef to avoid aspecialk session, since any requirement for the Legislature to come back will cost the statse money. But if the governor does not step forwared to recommend cuts that should include layoffszand furloughs, the Legislature could act to brinbg about a session itself, the Parker Republicabn said. “We need to stop spending and stoprightr now,” May said.
“Every communitg in the state has had to do reductions and Andwe haven’t done much of that so