More budget cuts coming?

Guv also announces more furlough days in effort to close budget gap

Peter Marcus, DDN Staff Writer

Wednesday, October 28, 2009

It’s spooky times for Colorado lawmakers Ń but this has nothing to do with Halloween.

Gov. Bill Ritter yesterday announced four additional furlough days for state workers as he prepares to address the Joint Budget Committee today on closing an additional $270-million budget shortfall.

State departments are bracing for yet another round of painful cuts as economic forecasts continue to project a bleak immediate future.

A surge in Medicaid enrollment is forcing this latest round of cuts, says the governor’s office. The deficit is expected to climb over $2 billion since September 2008.

Lawmakers back in August thought they were receiving better news when the shortfall was determined to be $320 million, not $384 million. But it still forced the state to start this current fiscal year with a significant shortfall.

A plan was put into place to close the shortfall, including releasing some prisoners early, eliminating nearly 270 full-time staff positions and cutting about $261 million from services and programs, such as closing 59 beds at the Colorado Mental Health Institute at Fort Logan and 32 beds at the Grand Junction Regional Center.

The governor’s proposal at the time represented a 10.4 percent reduction in spending over last year and included furloughing 15,500 state workers for four days.

But the bad economic news is back to haunt lawmakers just as Halloween approaches.

Ritter’s first action yesterday was to furlough state workers for another four days. The workers have already taken two furlough days and are not looking forward to another six.

But Ritter explains that it is necessary to save about $27.2 million.

“Businesses and families all across Colorado are tightening their belts and making tough decisions,” Ritter said. “I understand these furlough days will be a hardship on employees and their families, and on those who rely on the services that state employees provide. But these difficult economic times demand this sacrifice from all of us Ń and state employees are stepping up and sharing in the sacrifices that all families and all businesses are making.”

Jody Berger, spokeswoman for Colorado WINS, the union representing state employees, told the Denver Daily News back in July when the first round of furloughs was announced that state employees are what makes the state work Ń both on a private and public level Ń which is why officials should be looking at alternatives.

“State employees certainly understand the budget shortfall the state is facing, but these are people who have dedicated their lives delivering quality public services for Colorado, and any days they can’t work are days they’re not delivering services,” said Berger. “It hurts Colorado in the end.”

Republicans: Good move, but why the wait?

In a rare show of support for the governor, Republicans are applauding his move for an additional four furlough days, but said the move should have been made long ago.

“We got it all along, and it’s good to see the governor is starting to get it now, if a little after the fact,” said Sen. Greg Brophy, R-Wray.

Meanwhile, state economists are advising based on a September forecast that states the budget will be short at least another $240 million. As Medicaid enrollments rise with the economic downturn, that projection is shaping up to be closer to $270 million.

“Every option is on the table,” said the governor’s office, which could include additional cuts to higher education and human services.

Ritter plans to unveil his latest budget-balancing plan to the Joint Budget Committee at 9:30 a.m. this morning. He remains hopeful.

“While the recession has slowed us down, it hasn’t stopped us,” the governor said in a statement. “Colorado is faring better than many other states, and by working together, Colorado will emerge from this downturn quicker, stronger and healthier.”

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