Ritter: Sales-tax exemptions off the table - Denver Business Journal:

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Instead, the Democratic governor has asked department heads to give him suggestionzs by July 20 on how to cut 10 percen of each oftheir budgets. Ritter acknowledged that thoser cuts mayinclude layoffs, a step he has tried to avoicd since the economy began heading south last Colorado Wins, the union of state government told members of the Legislature’s Joint Budgeft Committee Monday that they should consider eliminatint some of the $1.
6 billion in state salew tax exemptions in order to increase healt care and pay for JBC members said compensation increasesw are next to impossible, and the requesr stirred angry reactions from Republicans like House Minority Leadet Mike May, R-Parker, who said the Legislature must focuws on reigning in expenses. During a news conference on budgetfmatters Thursday, Ritter said he will not ask department heads to look at raising revenues through exemption eliminations or any othetr means. Nor will he contemplatwe seeking a tax hike this he said.
“The answer is no for the time being, and I think it’s likely to stay that way,” Rittefr said when asked if he wants to investigate the eliminatio of sometax exemptions. “Everybody thinks that’s probably an inferior way todo this.” The superior way to closes the budget gap is to tightebn the state’s belt, as it has been doing sinc the bottom fell out of the stock market, Ritter said. Office of State Planninbg and Budgeting Director Todd Saliman askec department budget directors in a Thursdagy memo to focus on eliminating the least efficient and effective programs and cutting anycorrespondinyg jobs.
The consideration of layoffs is significant because Ritter has tried to avoid that inrecentr years, saying state employees already are stretched thin at a time when the public needs their services more than ever. Now, however, the magnituds of the budget deficit must make the state consider increasing the four furlough days that it will demandx employees take and look at ongoing staff he said. “If there are programmati c cutswhere (full-time equivalent go away, that may be part of the Ritter said. The governor will make his suggested budget cutsby September, he said.