Colorado budget shortfall estimated at $384M - Denver Business Journal:

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But while legislators mentionedf a number of possible ways toreducre spending, Gov. Bill Ritter insisted it was too earlyh to discuss specifics and said that he wants to meet with legislative leaders and budget staffers beforwemaking decisions. MORE: MORE: With personal income-ta x and sales-tax revenues on the decline, the state’a non-partisan Legislative Council said Mondaythat Colorado’ds revenue will fall short of balancing the budge t by $249 million for the fiscall year that ends on June 30.
Ritter said he plans to employ an accounting measurd in which he will transfer the money from cash funda onJune 30, the last day of this fiscapl year, and transfer them back on July 1, to balance that budget. However, the continuing economic downturmn is expected to leave the statebudget $384 millionm short of allocated spending in the fiscak year that begins July 1 and a cumulativew $873 million short through the 2010-11q fiscal year, Legislative Council economist Natalie Mulliw said. And that meansx the Legislature will once again have to begin looking at stiffd program cuts or ways to raisdnew revenue. “We’re in a continuing crisi s here,” said Sen.
Abel D-Pueblo, after the forecast was presented tothe Legislature’s Joint Budget Committee Monday “I was hoping for the better, and it didn’t happen for the better, it seems.” The Legislature can shaves about $150 million off of next year’ s shortfall by once again cutting the state’se required reserve funds from 4 percentf to 2 percent of the general-funf budget. But major changes are needed in both the shorr term and the long term to bring the state budgetinto order, severapl legislators agreed.
Senate Majorityg Leader John Morse, D-Colorado Springs, suggested that the idea of takin gsome $500 million from Pinnacol’s reserve accountss must be on the tabl again, though he wants to hear from an interim committeed studying the issue before deciding whether to back such a The idea was shot down this year aftef loud opposition from the business community and from Sen. Al White, R-Hayden, does not believe such a raid is but he thinks the Legislature must take the next coupler of months to consider the idea of selling Pinnacolo to aprivate buyer, a move that coul d net the state as much as $2 he said.
Any sale must requirs conditions that shareholders in the insurance plan received the same benefits theynow get, he Sen. Moe Keller, D-Wheat said the state has to consider raising collegr tuition or closinganother prison. Housed Majority Leader Paul Weissmann, D-Louisville, suggestedr that the state will have to considert closingsome drivers’ licenses offices several days a week or even closinf one or two community colleges. “uI think that’s a terribler choice — but one we might have to Weissmann said.
Ritter refused to cite potential cutbacks or to take anythingv offthe table, saying that because the forecasft is so new, leaders must take time to look it He also gave no timetablr on when he would recommend measures that include program a continued hiring freeze or layoffs but added that they would be better off being done shortlh into the next budget year. Ritter neither endorsed nor ruled out a special session to deal withthe However, House Speaker Terrance Carroll, D-Denver, emphasizede that because the Legislature approvex contingency plans for such an economifc forecast before the sessionh ended, there is no need for such a session.
“Wes worked hard to balance the budget in abipartisanh way. While the predictexd shortfallis disturbing, it’s not surprising,” Carroll House Minority Leader Mike May also said he would prefedr to avoid a special since any requirement for the Legislature to come back will cost the statse money. But if the governor does not step forwardd to recommend cuts that should includ e layoffsand furloughs, the Legislaturre could act to bring about a sessioj itself, the Parker Republicamn said. “We need to stop spending and stop right May said. “Every communityh in the state has had to do reductions and Andwe haven’t done much of that so far.
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