DENVER—Lawmakers preparing Colorado’s budget this year are negotiating a territory packed with political land mines.
They’re the kinds of questions voters see in political ads, especially when control of the Legislature is at stake: Who cares more about seniors? Who’s more willing to help schools? Who’s looking out for state workers?
Budget writers stuck on whether to cut state agencies’ payrolls by 2 percent agreed Thursday to reduce the amount to 1 percent and exempt some departments.
Democrats and state economists had warned a 2 percent cut would lead to as many as 500 layoffs, but Republicans expressed doubt.
The budget breakthrough came after a lively debate and repeated tied votes on several suggested compromises. The unanimous approval of the deal prompted Republican Rep. Cheri Gerou, the Joint Budget Committee chair, to raise her arms and exclaim, “Score!”
Departments exempted include prisons, youth corrections, public safety and emergency personnel that work around the clock. No layoffs are expected with the 1 percent cut.
Budget writers also agreed to add another $23 million to public colleges, eliminating most of the cut the higher education department was facing.
The debate is far from over, however. The budget is expected to be introduced in the Republican-controlled House next week, where lawmakers consider it and vote before sending it to the Democratic-led Senate.
Having more tax money this year has not made finalizing the budget any easier. Lawmakers learned this week they have about $200 million more to spend because of improved tax receipts, even after budgeting for a contentious property tax break for some seniors.
The latest disagreement came over the proposed 2 percent reduction. Republicans argue the savings would come from positions already vacant or where an older, higher-paid employee has been replaced with a worker who is paid less. However, Democrats maintain those savings don’t exist because departments have been cut so much in recent years.
The politics coloring the budget were on display Wednesday, when JBC members remained deadlocked on whether to eliminate the proposed reduction to departments. Democrats initially joined Republicans in proposing the cut last month when the revenue outlook was unclear. In exchange for the cut, Democrats proposed adding $15.8 million to the state’s contribution to workers’ health, dental and life benefits.
With the improved budget outlook, Democrats insisted cutting departments now is now unnecessary.
Cue the finger-pointing.
“I just don’t know why we’re trying to balance the budget on the back of our state workers,” Democratic Sen. Mary Hodge, a JBC member, said before one of the votes.
“I don’t believe that,” responded Republican Rep. Jon Becker, a JBC member. He said he understood both parties were having trouble agreeing, but added, “Stop saying that this is us balancing the budget on the backs of state workers because that’s not true at all.”
During the debate Wednesday, Republicans suggested reducing cut to 1 percent, while adding funding for schools, colleges, and pension and dental assistance to seniors. Soon after the last of the 3-3 votes, the GOP House press office immediately sent out a statement from Gerou.
“It’s irresponsible for Democrats on the Joint Budget Committee to withhold funding for the state’s neediest seniors and students,” she said.
Hodge’s statement on state workers was reminiscent of what Republicans said when they were lobbying to keep a nearly $100 million property tax break that the lawmakers from both parties eliminated in past years to balance the budget.
Gov. John Hickenlooper and fellow Democrats said the state could not afford the full tax, and that it should go only to seniors who need it, instead of also going to wealthy seniors. The voter-approved tax-exemption allows homeowners 65 and older who have lived in their homes for at least 10 years to deduct 50 percent of the first $200,000 of property value from their taxes.
“I don’t know whether people don’t like seniors,” Gerou said before lawmakers decided this week not to pursue another elimination of the tax.
It’s a crucial election year. Republicans control the House by one vote, and Democrats have a five-vote advantage in the Senate, and recent state redistricting could change the political landscape.
Gerou said political maneuvering to make one party look bad with voters is not driving the debate.
“If press offices decide to tell a story a particular way, I can’t control that. And I really don’t care what their story is,” she said.
Before the agreement Thursday, Gerou said the sniping from the previous day was “all water under the bridge now.”
“We all care about our beliefs, but we also like each other a lot and respect each other a lot,” she said.
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