Gov. Bill Ritter on Thursday directed department heads to look for whole programs that can be cut and said layoffs are not out of the question as the state works to close a $384 million shortfall in next year’s budget.
In a memo sent Thursday, Ritter’s budget director told department heads to come up with plans to cut 10 percent out of their budgets for the 2009-10 fiscal year, which starts July 1. The cuts, the memo said, should be focused on “eliminating the least efficient and effective programs, rather than continuing to shave resources from existing programs.”
“The plans must be vigilant,” the memo continued, “in eliminating corresponding FTE.”
Asked at a news conference whether that meant state employees (FTEs, or full-time equivalents, in business parlance) could lose their jobs, Ritter replied: “It could mean that.”
Ritter said additional furlough days for state employees also are possible. Next year’s budget is already expected to include at least four unpaid days off for many state employees.
Since the most recent budget forecast came out Monday showing the state in worse-than-anticipated fiscal shape, Ritter said he has been meeting with high-level aides and key lawmakers to come up with a plan for closing the budget gap. Todd Saliman, Ritter’s budget director, said Ritter decided to look at whole programs to cut rather than overall trimming because some programs have been shaved too thin already.
“These are big cuts we’re talking about,” Saliman said. “The governor wants to ensure that we continue to do critical functions well.”
Ritter said he hopes to have a plan for balancing the 2009-10 budget by August and present it to the legislature’s Joint Budget Committee in September. The cuts wouldn’t become official until the full legislature can vote on them when it reconvenes next year.
“We will do it thoughtfully and carefully,” Ritter said of the budget slashing. “And we’ll make sure our priorities and values are reflected in the cuts.”
Reaction to Ritter’s budget “road map” Thursday was mixed.
Jody Berger, a spokeswoman for Colorado WINS, the largest organized-labor group representing state workers, said the union wants to avoid layoffs and said the state should instead look at ways to boost revenue to close the gap — for instance, by eliminating tax credits.
“We need to look at fiscal reform and take a bigger-picture look at solving this budget issue,” she said.
House Minority Leader Mike May, R-Parker, gave a tentative compliment to Ritter’s plan, calling it “a good first step.”
House Speaker Terrance Carroll, D-Denver, said the new cuts will affect important programs.
“We’ve cut to the bone,” Carroll said. “What we’re talking about is cutting into the bone marrow.”
John Ingold: 303-954-1068 or jingold@denverpost.com
