Lowering the reimbursement rate for medical providers, expanding the early release program for Colorado prisons and implementing up to eight furlough days for state employees are among the cuts in the 2009-10 budget that passed yesterday.
State lawmakers yesterday trimmed approximately $300 million more from the 2009-10 budget to help make up for a $1 billion shortfall. The budget cuts were deemed tough but necessarily by lawmakers on both sides of the aisle.
“While we might not agree on how every dollar is saved or spent, we do agree that with the future of the state on the line, it is time to put aside politics and make good policy,” said a statement from Rep. Mike May, R-Parker. “This is a balanced budget that tightens our belt and wisely trims the fat off our expenditures.”
The budget, which passed on an initial voice vote in the House, would reduce the general fund by 1 percent. While Rep. Mark Ferrandino, D-Denver, said that sounds like a small number, the 1 percent plus inflation mandated growth required by Amendment 23 for K-12 education and the double-digit growth in case loads for Medicaid — two of the largest areas of the state budget — means that significant cuts had to be made in other areas.
Ferrandino said the hardest cut for him personally was slashing $27 million in provider rates to Medicaid clients. Medicaid will lose roughly $57 million in provider rate funding under the proposed budget because the federal government matches the amount of money put in by the state.
“Over the last couple of years, we’ve really invested in increasing the reimbursement rates to Medicaid,” Ferrandino said. “This sets us backwards from what we’ve been trying to do to make sure people with Medicaid have access to doctors all throughout the state … and the doctors who see Medicaid clients can get more of their costs reimbursed.”
Higher education spared
The updated budget spares higher education the large amount of budget cuts that were originally proposed.
Joshua Diller, a CU-Denver student who helped organize Tuesday’s rally to the Capitol in protest of the higher-ed cuts, said he’s glad Colorado’s college system won’t take the enormous financial hit that the original budget called for.
“We’re grateful that the governor did listen to what we had to say and reconsider the additional $300 million,” he said.
According to several lawmakers, it was learning that $760 million in Federal stimulus money would be sacrificed if $300 million was cut from higher education that caused them to reconsider the original plan.
“Today we passed a balanced and bi-partisan budget that protects opportunity in Colorado,” said a statement from Rep. Terrance Carroll, D-Denver. “Working together, Democrats and Republicans crafted a sensible budget that protects our schools, keeps the doors to Colorado’s colleges open, and will help put Colorado on the road to economic recovery.”
The proposed budget is scheduled to have a recorded vote in the House today. If it passes, the bill will be sent back to the Senate with amendments.
