Budget plan presented

Gov Bill Ritter is proposing to slash funding for K-12 education and the state’s tobacco prevention efforts as part of his 2010-11 General Fund budget proposal.

Additionally, the governor is recommending that the state raise approximately $18 million by charging a 3-cent sales tax on candy and soda.

Ritter presented his budget proposal to the Legislature’s Joint Budget Committee yesterday. The $7.1 billion proposed budget would close a $1 billion shortfall that the state is facing because of a loss in revenue.

“I’m asking everyone to share in the sacrifice, from schools to businesses to state workers,” Ritter told the JBC. “Everyone needs to do their part.”

K-12 program funding would see a 4.6 percent reduction if the proposed budget passes, a $260 million decline in the funding they received this year. Ritter said the cuts would be spread equally around schools.

“We’re hoping that schools will find a wayÉto operate really with this new economic reality,” he said.

Additionally, the proposed budget recommends that $25.7 million in funds used specifically to prevent tobacco use Ń especially by kids Ń be transferred to the General Fund. Colorado voters overwhelmingly passed Amendment 35 in 2004. The amendment levied an excise tax on tobacco products, and dedicated the revenue towards four tobacco prevention areas.

But because Colorado is in a declared fiscal emergency, lawmakers are able to divert those funds elsewhere.

Tobacco prevention groups have blasted the idea of diverting funds from tobacco prevention efforts as being short sighted. Doctors Tim Byers and Paul Bunn of the University of Colorado at Denver said in a paper published online that while they know that economic times are hard, the choice to leave the tobacco prevention funds alone is an easy one to make.

“Due to Amendment 35 investments, tobacco use has been falling steeply in Colorado in recent years,” they say in the essay. “This saves both lives and money spent on medical care in the future.”

For his part, Ritter said that cutting funds to tobacco prevention programs and K-12 education is not what he had in mind when he became governor. However, he added that being in the “worst recession since the Great Depression” has left him little choice.

“This reality that we find ourselves in creates in us a necessity to do something that we’d prefer not to do,” he said.

Twinkie tax

Consumer research has shown that the public does not support taxes on any food or beverage products, according to the editor of VendingMarketWatch.com, the “best source for vendingÉservice industry information.” 

Elliot Maras, the Web site’s editor, believes that if Ritter’s proposed tax on candy and soda does become law that it should apply to all retailers. 

Meanwhile, Sen. Al White, R-Hayden, came to Ritter’s defense, saying that the so-called “Twinkie tax” is a reasonable way to balance part of the budget.

“We’ve got to kind of spread the pain of this budget across the demographics of the state, and that one certainly would do it equally because I think everyone is involved in soda and candy,” he said.

Over the past 13 months, Ritter and the Legislature have closed a $2 billion shortfall for 2009-10 and a $1 billion shortfall for 2010-11.

If the upcoming December and March budget forecasts are worse than expected, Ritter will likely forced be forced to institute more cuts in the 2010-11 budget.

Colorado Democrats showed their support yesterday for the tough position Ritter is in as he tries to balance the budget.

“The governor’s proposal represents a balanced approach, making government more efficient and ending tax loopholes that don’t stimulate the economy or protect consumers, families or small businesses,” said JBC Chair Sen. Moe Keller, D-Wheat Ridge, in a statement. “We at the JBC are looking forward to evaluating these loopholes, analyzing the budget and getting to work on this proposal next week.”

It’s now up to the JBC to look at Ritter’s proposed budget. If they approve it, the budget will move on to the full Legislature.