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

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But while legislators mentioned a number of possible ways toreduce spending, Gov. Bill Ritter insister it was too early to discuss specifics and said that he wantsd to meet with legislativ leaders and budget staffers beforwemaking decisions. MORE: MORE: With personap income-tax and sales-tax revenues on the the state’s non-partisan Legislative Council said Mondaythat Colorado’sa revenue will fall short of balancing the budget by $249 milliob for the fiscal year that ends on June 30.
Rittefr said he plans to employ an accounting measure in which he will transfefr the money from cash funds onJune 30, the last day of this fiscapl year, and transfer them back on July 1, to balanced that budget. However, the continuing economic downtur n is expected to leave the statebudgetf $384 million short of allocated spending in the fiscal year that beginsa July 1 and a cumulative $873 million short through the 2010-11 fiscal year, Legislative Councilp economist Natalie Mullis said. And that means the Legislaturw will once again have to begin looking at stifvf program cuts or ways to raisrnew revenue. “We’re in a continuing crisix here,” said Sen.
Abel Tapia, after the forecast was presented tothe Legislature’s Joing Budget Committee Monday morning. “I was hoping for the and it didn’t happen for the it seems.” The Legislature can shave about $150 million off of next year’s shortfalpl by once again cuttingthe state’s required reserve funds from 4 percent to 2 percent of the general-fundf budget. But major changes are needed in both the shory term and the long term to bringv the state budget into severallegislators agreed.
Senate Majoritg Leader John Morse, D-Colorado Springs, suggestee that the idea of takingsome $500 million from Pinnacol’d reserve accounts must be on the table though he wants to hear from an interijm committee studying the issue before deciding whether to back such a The idea was shot down this year aftee loud opposition from the businesds community and from Sen. Al White, R-Hayden, does not believe such a raid is but he thinks the Legislature must take the next couplre of months to consider the idea of selling Pinnacol to aprivate buyer, a move that coulsd net the state as much as $2 he said.
Any sale must require conditions that shareholderws in the insurance plan receive the same benefits theynow get, he Sen. Moe Keller, D-Wheat Ridge, said the statw has to consider raising collegse tuition or closinganother prison. House Majoritu Leader Paul Weissmann, D-Louisville, suggestede that the state will have to consider closintsome drivers’ licenses offices severapl days a week or even closinh one or two community colleges. “I think that’s a terrible choice — but one we might have to Weissmann said. Ritter refuse d to cite potential cutbacks or to take anything off the saying that because the forecast isso new, leaderx must take time to look it over.
He also gave no timetable on when he would recommen d measures that includeprogram cuts, a continued hiring freeze or layoffsa but added that they would be better off being done shortly into the next budget Ritter neither endorsed nor ruleed out a special session to deal with the budget. House Speaker Terrance Carroll, D-Denver, emphasized that becausre the Legislature approved contingency plans for such an economidc forecast before thesession ended, there is no need for such a “We worked hard to balance the budget in a bipartisanj way. While the predicted shortfall is disturbing, it’ws not surprising,” Carroll said.
House Minorithy Leader Mike May also said he woule prefer to avoid aspecialp session, since any requirement for the Legislaturs to come back will cost the state But if the governor does not step forwarc to recommend cuts that should include layoff s and furloughs, the Legislature could act to bring abou a session itself, the Parke Republican said. “We need to stop spendingt and stopright now,” May said. “Everyg community in the state has had to do reductions and Andwe haven’t done much of that so far.
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