DENVER—Gov. Bill Ritter’s office approved 326 new hires or promotions in three months despite a state hiring freeze that started in late September.
The Denver Post reported Wednesday that Ritter’s office received 371 applications for exemptions to the hiring freeze and approved nearly 90 percent of them, which could cost the state more than $12 million.
The governor’s office estimates it has saved the state $12 million by freezing 463 spots.
“You also have to take into account the cost of avoidance,” Ritter spokesman Evan Dreyer said. “How many positions were not filled because the department didn’t even bring forward an exemption?”
The freeze does not apply to health and safety positions or other jobs serving an “essential state function.”
Approved exemptions, however, included seasonal potato inspectors, contract lobbyists, a lottery ticket salesperson and a host of administrative assistants.
“We have to take into account that some of these positions are essential to public safety and health and others have dedicated revenue,” said Republican state Rep. Mark Ferrandino, a member of the joint budget committee. For example, the Department of Wildlife stands to lose $12 million in federal funding if it gives even $1 in excess revenue to the general fund.
The Colorado Lottery is self-funded and has dedicated revenue. Excess revenue goes into a cash fund that the lottery can use to meet operating costs, Ferrandino said. Cash-funded agencies “don’t really save us any in the general fund, so not hiring doesn’t make any sense.”
The Colorado Lottery hired a new sales representative at a monthly salary of $3,700 to replace an employee who died last year.
“If we don’t sell tickets then we can’t give money to parks and recreation or the Department of Wildlife or the Conservation Trust Fund,” said Colorado Lottery spokeswoman Erika Gonzalez.
Still, excess money in cash funds can be used to backfill the general fund in a budget crisis, said Ferrandino.
“The government has raided the cash funds in the past to make up for budget shortfalls,” said Sen. Bill Cadman, R-Colorado Springs. “We took money from the veterans trust fund in 2001 and 2002.”
For those positions that were granted exemptions because they were deemed essential to public safety or because they serve an essential state function, Cadman says: “They should have set a higher standard.”
“We’re going to have to review everything—to include these positions—because obviously we’ve got to make huge cuts before June 30,” said Sen. Rollie Heath, D-Boulder, referring to next year’s $600 million state budget.
But Rep. James Kerr, R-Littleton, says fixing a leaky roof isn’t the solution.
“We had an opportunity each and every session since I’ve been here to save money in a rainy day fund, and we didn’t, and now the rain is pouring,” Kerr said.
