Colorado’s economic recovery is continuing, but the state budget still faces a major shortfall next year, according to two quarterly forecasts released by state economists Tuesday.
Henry Sobanet, Republican Gov. Bill Owens’ budget director, said the state will not have enough money this year to keep a required 4 percent reserve. Current projections show there is only enough money to fund a 2.1 percent reserve.
If the reserve falls below 2 percent, Owens is required to cut expenses. He has asked Sobanet to list the buildings that could most viably be sold.
Legislative economists predict the state will fall $493 million short of the 6 percent growth rate lawmakers say they need to fund a growing state.
Sobanet said his projections show the state will have to cut about $365 million from next year’s budget.
The forecasts largely tracked earlier predictions. They are the last official estimates from state economists before voters will be asked in November to weigh in on two budget measures that supporters say will fix Colorado’s budget problems. Opponents argue the ballot questions ask voters for more money than is needed.
Referendum C asks taxpayers to allow the state to keep an estimated $3.7 billion over the next five years that would otherwise be refunded to taxpayers under the Taxpayer’s Bill of Rights (TABOR).
Its companion measure, Referendum D, asks voters to authorize $2.1 billion in loans to pay largely for improvements to roads and schools.
Staff writer Chris Frates can be reached at 303-820-1633 or cfrates@denverpost.com.
