Spring Break
Ritter signs a $19.2 billion budget into law
Colleen Slevin - The Associated Press
Issue date: 5/4/09 Section: News
DENVER - Gov. Bill Ritter signed Colorado's new $19.2 billion budget on Friday, a spending plan that includes cuts to health clinics and suspension of a tax break for seniors, but prevents cuts to higher education and safety net programs like Medicaid.
The budget, for the fiscal year that starts July 1, also includes money raised by an increase in vehicle registration fees, as well as extra money from the federal government for paying for increased demand for Medicaid, the health insurance program for the poor and disabled, because of the economic downturn.
Between the current budget and the new budget, lawmakers had to make up for a combined $1.4 billion drop in tax revenue brought on by the recession.
Budget analysts are still adding up the varied ways lawmakers balanced the budget but say the combination of cuts and new revenue for general state services - such as prisons, courts and education - added up to around $1.2 billion.
About $400 million of that came from new revenue, such as suspending the senior tax break and not allowing stores to keep a portion of the sales tax.
About $200 million comes from moving around money from other funds, such as the state's tobacco settlement money and federal mineral royalties.
They also cut the state's reserve account in half, giving them an extra $140 million.
Spending on general state services is also down $500 million over what would be expected in a normal year.
That includes closing one women's prison and delaying the opening of another, freezing employee salaries and requiring unpaid furloughs or salary cuts.
Spending for schools will still rise by $146.2 million, a 4.7 percent increase, despite the downturn because annual increases are required under voter-approved Amendment 23.
Before signing the bill, Ritter praised lawmakers, including members of the Joint Budget Committee, for passing a budget that protects priorities like health care, education and economic development.
The budget, for the fiscal year that starts July 1, also includes money raised by an increase in vehicle registration fees, as well as extra money from the federal government for paying for increased demand for Medicaid, the health insurance program for the poor and disabled, because of the economic downturn.
Between the current budget and the new budget, lawmakers had to make up for a combined $1.4 billion drop in tax revenue brought on by the recession.
Budget analysts are still adding up the varied ways lawmakers balanced the budget but say the combination of cuts and new revenue for general state services - such as prisons, courts and education - added up to around $1.2 billion.
About $400 million of that came from new revenue, such as suspending the senior tax break and not allowing stores to keep a portion of the sales tax.
About $200 million comes from moving around money from other funds, such as the state's tobacco settlement money and federal mineral royalties.
They also cut the state's reserve account in half, giving them an extra $140 million.
Spending on general state services is also down $500 million over what would be expected in a normal year.
That includes closing one women's prison and delaying the opening of another, freezing employee salaries and requiring unpaid furloughs or salary cuts.
Spending for schools will still rise by $146.2 million, a 4.7 percent increase, despite the downturn because annual increases are required under voter-approved Amendment 23.
Before signing the bill, Ritter praised lawmakers, including members of the Joint Budget Committee, for passing a budget that protects priorities like health care, education and economic development.
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