Gov. Bill Ritter on Tuesday unveiled his final budget in office, a spending plan that calls for a relatively meager increase to K-12 public schools and a net reduction in funding for colleges and universities.
Ritter’s $19.1 billion budget for the 2011-12 fiscal year also would give, for the third year in a row, no pay increases to state workers and for the second consecutive year would shrink their paychecks by 2.5 percent to help the state make its employee pension fund payments.
But, unlike two years ago, there are no furloughs for state workers in next year’s budget.
“Anyone who claims to have a pain-free way to balance the budget is not only wrong but disingenuous,” Ritter said.
The total budget in the current fiscal year, which ends in June, is $18.2 billion. While Ritter’s proposal for the 2011-12 year would be nearly $1 billion larger, revenues have not grown fast enough to keep up with school and college enrollment and human services caseload growth.
The budget Ritter proposed Tuesday would have to be carried forward by his successor and approved by the legislature.
Unlike the current year’s budget, Ritter’s 2011-12 plan does not call for the elimination of additional tax breaks. Lawmakers in the 2010 session, at Ritter’s urging, removed about $100 million in tax breaks to help balance the current year’s budget.
Republicans, though, said Ritter’s latest budget still proposed too much in spending, though they have not outlined programs they would cut.
“Gov. Ritter’s latest budget does not to seem to be in line with current economic conditions,” said Senate Minority Leader Mike Kopp, R-Littleton. “However, we look forward to working with the newly elected governor and members of the General Assembly to craft a budget based on realistic expectations and the public’s demand for leaner, smaller government.”
Some highlights of Ritter’s proposed 2011-12 budget include:
• A $43 million, or a 0.8 percent, net increase for public schools. Schools took a $260 million, or 6 percent, net decrease last year. However, if K-12 education was getting the full amount of increased funding as envisioned under Amendment 23, passed by voters in 2000, the increase would have been $458 million for next year.
• Keeping state support for higher education at its current level of $555 million but not replacing the $89 million in federal stimulus funds colleges and universities got in the current year to weather the economic crisis. Ritter’s budget calls for a 9 percent tuition increase.
• Cutting take-home pay for state employees by 2.5 percent to help cover the state’s costs to pay into the employee pension fund. The move saves an estimated $19 million.
• Cutting payroll funding for departments by 2 percent, saving nearly $10 million and likely meaning some open positions will go unfilled.
• Sweeping $10 million from a medical-marijuana cash fund to help balance the budget.
• Eliminating $2.7 million for state parks, necessitating a $1 increase in daily park fees.
• Continuing a suspension of the sales-tax exemption on cigarettes, meaning smokes are subject to the state’s 2.9 percent sales tax. The move raises $11.7 million.
• Continuing the suspension of a benefit for businesses that allowed them to keep a portion of the sales tax they collect to help cover their collection costs. Continuing to disallow businesses this benefit would save $71.6 million per year for three years.
• Cutting certain optional services and tightening processes with the state’s CHP+ health insurance program for children, saving $12.2 million in general fund.
• Reducing Medicaid general fund expenses by $14.8 million by cutting certain expenditures and capping some services.
Tim Hoover: 303-954-1626 or thoover@denverpost.com
