Gov. Bill Ritter on Sunday proposed what he called a “frugal, conservative” budget that anticipates more hard times ahead and calls for creating the state’s first rainy-day fund.
The spending plan shows there is scant funding for highways and other transportation needs, and Ritter said more money must be found.
The proposal reflects a 4.98 percent increase — or about $376 million more — over the current year in the state’s general fund, raising it to $7.9 billion.
“These are tough economic times,” said Ritter, a Democrat. “National and international markets are experiencing what we would call gale-force head winds. So far, Colorado has been somewhat buffered.
“But we know we’re not going to be immune from these head winds. They’re just too strong.”
Even so, the governor’s proposed 2009-2010 budget would add 907 employees to the state’s payroll, an increase that comes after he and the Democratic-controlled legislature added more than 2,600 state workers over the past two years.
Ritter said more than half of the new proposed employees are needed for growth in prisons or to handle increased needs in social services.
“The big increases (in new employees) are caseload-driven,” Ritter said.
The proposed budget would not continue a hiring freeze Ritter put in place in the current fiscal year and which might be lifted before the fiscal year ends in June. Under Ritter’s spending plan for next year, state workers would not get performance pay raises, though many would still get inflationary adjustments.
Lawmakers would have to approve the creation of the rainy-day fund, into which Ritter proposed putting $77 million in case revenues decline more than projected.
Republicans reacted coolly to the budget. They praised the rainy-day fund, which they have called for repeatedly, but said the spending plan adds too many employees in a time of austerity.
“In three years, we will have grown government to the size of a small eastern Colorado town,” said Sen. Mike Kopp, a Littleton Republican.
“The governor’s record-setting budget continues to grow state government at an incredible rate in a time of economic uncertainty, while neglecting key priorities like transportation,” said Rep. Cory Gardner, a Yuma Republican.
Tim Hoover: 303-954-1626 or thoover@denverpost.com
The budget process
• Colorado’s budget process begins in November when the governor presents recommendations to the legislature’s Joint Budget Committee.
• The JBC holds hearings in November and December.
• By February, the legislature must certify how much money will be available in the state’s general fund. For the next two months, the JBC makes funding decisions and drafts the legislature’s budget.
• By late March, lawmakers introduce the budget bill. The bill must be passed in both houses in April, and any differences are worked out.
• The governor may use a line-item veto to eliminate funding for specific programs.
— Tim Hoover
