The Colorado Senate on Wednesday initially approved a plan to balance the current year’s state budget over the objections of Republicans who said it spared too much spending from the ax.
Though lawmakers passed a balanced budget last year, a December economic forecast said that the state would be more than $600 million short of revenue projections for the current fiscal year that ends in June. It also predicted revenue next year would be $385 million short of projections.
The plan to balance the current year’s budget relies on transferring $226 million from cash funds as well as spending about $150 million, or roughly half, of the state’s reserve fund.
The budget-balancing plan also rests on the assumption that the state will get at least $107 million in federal stimulus money to help offset the costs of Medicaid programs this year.
The plan would cut $124.8 million in general-fund spending, including $30 million from higher education and $65.3 million from public schools.
Sen. John Morse, D-Colorado Springs, sponsored several amendments to restore $14 million in cuts to Medicaid programs and other social services, including $8.6 million alone to restore cuts in the rates paid to doctors and hospitals who take Medicaid patients.
Morse said the programs could be restored, based on the increased federal money for Medicaid. His amendments passed.
But the prediction of more Medicaid money didn’t sit well with a number of Republicans.
“It’s still unclear exactly how much new money the state of Colorado is going to receive” from the federal package, said Senate Minority Leader Josh Penry, R-Grand Junction.
Sen. Moe Keller, D-Wheat Ridge, the chairwoman of the legislature’s Joint Budget Committee, said the state could easily afford to restore the programs Morse wanted.
Some Republicans also objected to draining half of the state’s reserve fund, saying that raiding cash funds and reserve money was no substitute for spending cuts.
“This bill is so full of raids, it would make a Viking proud,” said Sen. Mike Kopp, R-Littleton.
Rural lawmakers, angry about a budget bill that hikes permit fees for water wells, tried to steer the bill to the Senate Agriculture Committee for further discussion. The effort, led by Sen. Jim Isgar, D-Hesperus, initially succeeded but was later reversed.
The Senate must approve the budget plan once more before it moves to the House.
Lawmakers still must craft a budget for the next fiscal year. They probably will cut much more deeply to meet the predicted $385 million shortfall.
Keller acknowledged that next year could be far worse.
“We know we’re buying time,” she said. “All of this is a work in the wilderness. We just don’t know what’s coming our way.”
Tim Hoover: 303-954-1626 or thoover@denverpost.com
