Gov. Bill Ritter’s proposed budget for the fiscal year that begins July 1 is a prudently pared-down wish list that wisely sets aside an extra $77 million in reserves to guard against an economic downturn.
Ritter’s budget does add 907 new state employees, which at first glance seems to ignore this country’s economic downturn and is at odds with the hiring freeze the governor announced earlier this fall. But almost all those new employees are in public safety and most were locked in by decisions made by earlier legislatures.
About 646 new jobs are necessary just to staff the upcoming Colorado State Penitentiary II in Fremont County and the Denver Reception and Diagnostic Center Correctional Facility. Both projects were sought by former Gov. Bill Owens. Likewise, it will take 133 new court employees to staff several new state judgeships authorized by the 2007 legislature.
Adding mandated increases in K-12 education and Medicaid programs to those public safety increases forced Ritter to put a tight lid on other new spending to hold next year’s increase from the current $7.5 billion general fund to 4.98 percent — a $376 million jump — rather than the 6 percent increase allowed by current law. That left $77 million available as a reserve fund to cover possible revenue shortfalls if the economy further sours.
If the special $77 million reserve hasn’t been tapped by the end of the next fiscal year, $30 million will go into a special fund to repair and replace deteriorating bridges. Ritter hopes to put $150 million into bridge repairs over the next five years. Another $40 million will go to an expanded “rainy day fund” that Ritter likewise hopes to build to $200 million over the next five years. The final $7 million would fund more job creation efforts.
Stripped of these mandated public safety, K-12 education and Medicaid increases, there is very little new spending in Ritter’s budget. The governor does call for $40 million in new cash for higher education, which is a smart move. He also seeks $11.4 million for a Child Welfare Training Academy for newly hired caseworkers and supervisors.
Ritter’s budget also predicts a reduction in transportation funding. That doesn’t mean Ritter wants to cut transportation, it’s just that supplemental transportation funding in Colorado depends on budget surpluses that are highly unlikely to occur as sales tax revenues fall as nervous consumers cut back discretionary spending.
Thus, this budget again underscores the need to find a permanent increase in the state’s basic transportation budget.
Soon.
But for now, Ritter has offered a prudent blueprint for a slowing economy.
