DENVER—The meltdown on Wall Street trickled down to the state on Monday, forcing lawmakers to consider a hiring freeze and other budget cuts to cope with declining revenues.
Rep. Al White, R-Hayden, told the Joint Budget Committee it would be better to begin making cuts as soon as possible rather than wait for the Legislature to convene in January.
Democrats on the panel also agreed the state needed to cut its spending. While other states may be able to borrow money to make up for shortfalls, Colorado’s constitution bars deficit spending.
White said the Legislature should resurrect a list of proposed cuts during the last economic downturn, a list that became known as the “horrible” list because of the huge cuts that would have been required. State agencies drew up a list of proposed cuts that recommended $256 million in budget cuts, including the permanent closing of 11 state parks and eliminating 210 jobs in the health department.
“I think another list of horribles might be a good idea,” White said.
The budget committee cannot order cuts on its own but lawmakers plan to ask Gov. Bill Ritter to consider immediate action, including a hiring a freeze.
Ritter said it’s too early to begin slashing the budget and he wants to see what happens if Congress approves a bailout of the financial industry. He said estimates from his budget office indicate there will be no shortfall.
The recommendations were made after state budget officials warned revenues have fallen an estimated $200 million over their earlier forecasts for the state’s $17.6 billion budget because of a decline in sales and use taxes for the current budget year. Their current estimate for a shortfall in this year’s budget is $100 million.
State Treasurer Cary Kennedy told lawmakers that three money market funds that invest money for local governments and schools have been hit hard by the market squeeze and those agencies are being limited to withdrawing 5 percent of their assets per day to prevent a run on their funds.
She said the only immediate impact would be on the ability of the 360 agencies to pay any large bills that are coming due in the near future.
“We don’t have concerns about losses here. We fully anticipate that as soon as the credit markets loosen up that these funds will be able to right flow back into these agencies and everyone will be made whole,” she said.
She said if the national crisis drags on, it could have a serious impact on the ability of those agencies to pay their bills.
![Newspaper advertisement offering reward for the return of an escaped man to his oppressors, Princess Anne, Maryland, April 1, 1861. Text reads: “0 Reward. Ranaway from the subscriber on Tuesday Morning, 26th Ultimo [last month], My negro boy calling himself Severn Black. The said negro is about 5 feet six inches in height, chesnut color, has a scar on his upperlip, downcast countenance when spoken to, blink-eyed, showing a great deal of white, long bushy hair, is about twenty years old, had on when he lefta [sic] blue fustian Jacket, pantaloons of a greyish color, blue striped shirt, a Black slouch hat and shoes nearly worn out. The above reward will be paid by me for the apprehension and delivery of the said negro in the county jail at Princess Anne, Somerset County, Maryland. April 1, 1861. Richard E. Snelling. Somerset Herald Print, Princess Anne, Md.’ The Fugitive Slave Act of 1850 obliged citizens and lawmen of free zones to return escaped men to those whom they fled. (Photo by Hulton Archive/Getty Images)](/wp-content/uploads/2026/09/GettyImages-53262583-16x9-1.jpg?w=620 "GettyImages-53262583-16x9-1")
