State lawmakers completed the first round of budget debates last week with millions of extra dollars heading toward public schools, state universities and health care programs.
The proposed 2006-07 budget has enough money to spare lawmakers from the budget cuts that have squeezed programs in years past. But even in a $16.5 billion budget – up from $15.6 billion a year ago – there are winners and losers.
During the upcoming week, the Joint Budget Committee will consider lawmakers’ amendments to the budget with a deadline of Friday to decide which, if any, changes to keep.
Here’s a breakdown of some winners and losers as the budget currently stands.
Winners
Senior citizens
The property-tax exemption for senior citizens is back after a three-year absence. Lawmakers eliminated the exemption when hard economic times hit the state and reduced revenues.
The state expects to spend $64.6 million on the exemption.
Higher education
State colleges and universities are bouncing back.
Lawmakers approved $25 million that will be spread among all state universities and colleges to catch up on enrollment increases that had not been funded by the state in recent years.
Lawmakers also gave community colleges permission to increase tuition by 2.5 percent. The Joint Budget Committee had limited those colleges to a 1 percent hike.
Pueblo
Pueblo hauled in about $93 million in state funding for capital-construction projects.
The Pueblo Chieftain greeted the news with a banner headline, “We’re in the money,” and a lengthy list of construction projects that will get funding because of this year’s budget negotiations.
That list shows it pays to have politicians in powerful positions.
The Pueblo-area delegation includes Sen. Abel Tapia, vice chairman of the Joint Budget Committee, and Rep. Buffie McFadyen, vice chairwoman of the Capital Development Committee.
“I’d stand up tall and say we did very well in how we appropriated money to state agencies,” Tapia said, noting that Pueblo is home to the state fairgrounds, the lottery, the state mental hospital and several other state services.
Losers
Illegal-immigration foes
Sen. Greg Brophy, R-Wray, attempted without success to block funding that would benefit illegal immigrants. Brophy also wanted a study to show how much money is being spent on illegal immigrants in state prisons.
Homeland security
Officials in the Department of Public Safety had requested $1 million to add eight and reassign five State Patrol officers and troopers to its disaster-preparations office.
The budget request caused some lawmakers to question what State Patrol officers would be taken off the roads.
The 2006-07 budget shows a $268,000 decrease – from $1.35 million to $1.1 million – in funding for the operation because the federal government is expected to cut back grants to the state.
Circumcision opponents
Rep. Mark Larson, R-Cortez, attempted to amend the budget so that state money is not spent on circumcisions for children of poor people.
Larson figures that the state could have saved $273,000 next year if the state eliminated the “cosmetic surgery of circumcision” as a covered Medicaid benefit.
Opponents said the measure was unfair to the poor.
Win or lose?
Roads
The road warriors wanted more. The anti-road crews wanted less. In the end, the state transportation department will get nearly $1 billion in the 2006-07 budget – mostly from gas-tax revenues.
Because of formulas in the state budgeting system, more money than previously expected is flowing into road spending. Current estimates show that the Colorado Department of Transportation will get $297.1 million in the current budget year.
Still, the Colorado Contractors Association is warning that future money for roads is being diverted by funding for programs in this year’s budget.
For example, the contractors say that a bill to expand eligibility of a heat and rent rebate for the poor would cut $42 million from roads in the long run.
Rainy-day fund advocates
The rainy-day fund proposals are still in limbo.
Several Republicans – most of them opponents of Referendum C – wanted to lock up the extra money that the state will collect because of the ballot measure.
Because of the improved economy, budget experts predict that in 2006-07, the state will collect $801 million in extra tax revenue, up from the $646 million that had been expected in November.
Some House Republicans wanted to set aside that $155 million.
As of last week, the details of the rainy-day proposal still had not been settled, but officials say a deal is imminent.
“Somebody asked me the other day, ‘Whatever happened to the rainy-day fund?’ I told them, ‘I think it’s been rain- delayed,”‘ said Rep. Cory Gardner, R-Yuma.
Staff writer Mark P. Couch can be reached at 303-820-1794 or mcouch@denverpost.com.
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