DENVER—Colorado Gov. John Hickenlooper urged state lawmakers to do a better job working together next legislative session—but he gave no signal Friday he’d compromise on what is shaping up to be the biggest partisan sticking point.
Lawmakers are headed toward a gridlock on balancing next year’s budget, with Republicans calling for changes to Medicaid spending and keeping a $98.6 million property tax break for seniors. Hickenlooper and fellow Democrats argue that the state can’t afford the tax break and that the large spending increases in Medicaid are required under federal law.
“I was not able to bring my Medicaid magic wand today,” Hickenlooper joked, referring to Republicans’ suggestion that the state explore some waiver from Medicaid spending requirements. “Indeed, there is no magic wand. This isn’t Disneyland.”
Hickenlooper and legislative leaders spoke Friday at an annual event for reporters at the Colorado Press Association to discuss the 2012 session, which begins Jan. 11.
Hickenlooper said his office was open to taking ideas from both parties and Democrat and Republican leaders who spoke after him echoed that sentiment. But like Hickenlooper, they signaled they would hold firm to their beliefs on the main issues dictating the budget.
“Our view and the place from which we start is much different than from where some of my Democrat colleagues are starting,” said Republican House Speaker Frank McNulty. “We’re starting from the position that it is a bad idea to raise property taxes on those seniors in Colorado who have been hardest hit by this recession.”
The tax break known as the “homestead exemption” allows homeowners 65 years and older to deduct 50 percent of the first $200,000 of property value on their taxes. Only seniors who have lived in their homes for at least 10 years qualify. Lawmakers from both parties in the past have suspended the voter-approved tax break to balance the budget.
Hickenlooper has said that $679 million in cuts are necessary to balance next year’s budget and that eliminating the senior property tax break is necessary. He has warned that keeping the tax cut will mean further reductions to education, which is already expected to lose $89 million from K-12 schools and about $60 million from public colleges in the next budget.
Under Hickenlooper’s budget, Medicaid would account for $185.6 million of the $227.1 million spending increase in the general fund, which is expected to be at about $7.4 billion. Hickenlooper said the bad economy has made more people eligible for Medicaid and the state is required to spend on the program.
Republicans say the state needs to find a way to scale back Medicaid spending while giving Colorado more control over it. Hickenlooper and other Democratic leaders argue that the new federal health care law prevents states from restricting who receives the health care assistance.
Rep. Mark Ferrandino, the Democratic leader in the House, said Republicans are creating a “false choice” between education and Medicaid or Medicaid and seniors.
“And it’s simply irresponsible,” he said. “I’m open to reform to any program that needs it, including Medicaid. But there is no magic bullet or magic waiver.”
Sen. Bill Cadman, the Republican leader in the Senate, said lawmakers should examine some of the optional Medicaid services the state is spending on.
“We’ve increased the burden on ourselves and kind of the old adage is when you’re in a hole, stop digging,” he said.
But Ferrandino said some of those optional services, like funding for prescription drugs, organ transplants, and prosthesis and home-health care, help control costs in the long run.
Many lawmakers will be running for re-election next year, including some from Congress, which can make next year’s session especially combative. Senate Democratic President Brandon Shaffer, who is running for the 4th Congressional District, said it doesn’t have to be that way.
“These guys are not my opponents. At the end of the day, we’re on the same team,” he said.
McNulty, whose relationship with Shaffer is perceived to be an acrimonious one, acknowledged that both parties have different philosophies about boosting Colorado’s economy. But he said “we will not allow these philosophical differences to get in the way of finding common ground.”
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