DENVER—Colorado lawmakers have drawn up an “ugly list” of potential steps to balance their recession-plagued budget, including funding cuts and tuition increases for higher education and furloughs for state employees.
The Associated Press obtained the list Tuesday. The state is looking for $156 million to cut from this year’s budget, which ends June 30, and $786 million from next year’s, which starts July 1.
The “ugly list” could be used in either budget year as the state copes with a sharp decline in tax revenues because of the deep nationwide recession.
Possible cuts for the next budget year include $103 million from reducing funding and raising tuition for state colleges and universities and $1.8 million for a one-day furlough.
Other possibilities for next year include using $10 million in federal highway funds for the driver’s license program and saving $91 million by suspending homestead exemptions on property taxes owed by the elderly and by disabled veterans.
The recommendations for the current budget year are less drastic. With only about 90 days left in the fiscal year, budget staffers have mostly recommended taking more money from cash funds designated for specific programs to balance this year’s budget.
This year’s options list does include cutting $8 million from senior services, ending the Read-to-Achieve program and ending mental health care for juvenile and adult offenders.
The Joint Budget Committee hasn’t decided which options they’ll back yet.
The list incorporates an additional $14 million from higher education, including $9 million the University of Colorado now gets from the state’s tobacco lawsuit settlement and $5.9 million in need-based aid to graduate students.
The list isn’t expected to cover the full $786 million shortfall in the next budget year. That raises the possibility of even more drastic measures, such as eliminating the state subsidy given to all Colorado college students to help them pay their tuition.
Democratic Sen. Bob Bacon of Fort Collins, whose district includes Colorado State University, said he doesn’t want to ask students to pay more tuition during a recession but also doesn’t want to cut aid to developmentally disabled people or payments to doctors caring for Medicaid patients.
Bacon said he still hopes Colorado’s share of federal stimulus money will help soften the blows of any cuts to higher education.
“Many of us have more questions than answers on how we can hold all of this together in these precarious times,” Bacon said.
Senate President Peter Groff, D-Denver, said lawmakers have few choices because of the state’s tough tax and spending limits.
“Our hands are tied,” he said.
Sen. Al White, R-Hayden, said even with the cuts, the state is still in a hole.
Senate Minority Leader Josh Penry, R-Grand Junction, said the list isn’t final and lawmakers will try to make sure all state agencies share the pain.
“We have a lot of tough choices ahead,” Penry said.
Lawmakers have few options for cuts in the current budget year because only about 90 days are left.
Furloughs would have limited effect. Eliminating a property tax break for seniors could save $91 million, but many have already paid their taxes based on that break.
Other possibilities next year include changing sentencing laws to incarcerate fewer convicts, taking more money out of the state’s reserve fund, reducing the rate the state pays to private prisons for housing its inmates and trimming funds for kindergarten through 12th grade schools.
Lawmakers originally wanted to finish the budget cutting by the end of the week but may delay that to review their choices.
“It’s too rushed and we don’t have all our options yet,” Sen. Moe Keller, D-Wheat Ridge, the chairwoman of the budget committee.
Lawmakers still don’t know exactly how much federal stimulus money earmarked for education will help them plug the state shortfalls.
The money is controlled by Gov. Bill Ritter, who is still working out a plan for how to spend it. He’s expected to propose his ideas by mid-April. If the budget is delayed, there would still be time to take that money into account.
