Lawmakers trying to balance Colorado’s budget have rejected the idea of furloughing thousands of state employees, saying the savings were not worth the potential disruption to state services.
That’s one of the most significant differences the powerful Joint Budget Committee has had with Gov. Bill Ritter’s office, which recommended five furlough days for the next budget year starting in July and asked for the authority to have three furlough days in the current year ending in June.
The state is facing a $1 billion shortfall over the next year and a half. A December forecast estimated that revenues for the current year are more than $600 million below projections made last year.
The Joint Budget Committee on Wednesday finished its plan to balance the current year’s budget, following most of Ritter’s recommendations but departing in a few areas. The plan includes relying on an estimate of $107 million from the federal stimulus package to help with Medicaid costs.
The plan now must be approved by the House and Senate, and the panel is working on balancing next year’s budget.
The committee will make a budget presentation Monday in a rare joint session of the House and Senate.
Ritter’s office had estimated that five furlough days in the next budget year could save as much as $7.6 million from the state’s general fund and up to $7.4 million from cash funds. The furlough order would not have applied to employees critical for public safety such as prison guards, State Patrol troopers and 24-hour caregivers.
Also exempted were employees at colleges and universities, whose paychecks may come from different funding streams.
Rep. Don Marostica, R-Loveland, a member of the Joint Budget Committee, said the panel concluded the benefits of furloughs for the state budget were offset by concerns over how state services would be affected.
“These employees are already having to do more because of the hiring freeze and vacancies,” Marostica said, noting that state workers already are scheduled to get no pay raises next year.
Rep. Mark Ferrandino, D-Denver, agreed.
“With the hiring freeze, there are parts of state government that are running on very lean staff,” Ferrandino said.
Besides, he said, the committee also concluded that Ritter, a Democrat, could still furlough employees without legislative authorization.
Evan Dreyer, Ritter’s spokesman, said the governor never wanted to furlough state employees, and if that can be avoided, all the better.
Tim Hoover: 303-954-1626 or thoover@denverpost.com
