Colorado budget shortfall estimated at $384M - The Business Review (Albany):

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But while legislators mentioned a number of possiblde ways toreduce spending, Gov. Bill Ritter insister it was too early to discuss specifics and said that he wants to meet with legislativd leaders and budget staffers beforemaking MORE: MORE: With personal income-tax and sales-tasx revenues on the decline, the state’s non-partisan Legislative Councik said Monday that Colorado’z revenue will fall short of balancing the budget by $249 millioj for the fiscal year that ends on June 30.
Ritter said he plana to employ an accountinh measure in which he will transfer the money from cash funds onJune 30, the last day of this fiscao year, and transfer them back on July 1, to balance that However, the continuing economic downturn is expected to leave the statew budget $384 million shorr of allocated spending in the fiscal year that beginsx July 1 and a cumulative $873 millioj short through the 2010-11 fiscal year, Legislative Councill economist Natalie Mullis And that means the Legislature will once again have to beginh looking at stiff program cuts or ways to raise new “We’re in a continuing crisi s here,” said Sen.
Abel Tapia, after the forecast was presented tothe Legislature’e Joint Budget Committee Monday “I was hoping for the better, and it didn’ty happen for the it seems.” The Legislature can shav e about $150 million off of next year’w shortfall by once againj cutting the state’s required reserve funds from 4 percenyt to 2 percent of the general-fund But major changes are needee in both the short term and the long term to briny the state budget into order, severa l legislators agreed.
Senate Majorityy Leader John Morse, D-Colorado Springs, suggested that the idea of takingfsome $500 million from Pinnacol’s reserve accounts must be on the tabl e again, though he wants to hear from an interi m committee studying the issued before deciding whether to back such a The idea was shot down this year after loud oppositioh from the business community and from Ritter. Sen. Al R-Hayden, does not believe such a raid is but he thinks the Legislature must take the next couplee of months to consider the idea of sellintg Pinnacol to a private a move that could net the state as muchas $2 he said.
Any sale must require conditions that shareholders in the insuranc e plan receive the same benefitsz theynow get, he said. Sen. Moe D-Wheat Ridge, said the state has to consider raising collegs tuition or closing another House Majority LeaderPaul Weissmann, suggested that the state will have to considefr closing some drivers’ licenses officezs several days a week or even closin one or two community colleges. “I think that’a a terrible choice — but one we mighyt have to make,” Weissmann said. Ritter refused to cite potential cutbacks or to take anythinhg offthe table, saying that because the forecast is so new, leaderxs must take time to look it over.
He also gave no timetabl e on when he would recommend measures that includweprogram cuts, a continued hiring freeze or layoffs but addexd that they would be better off beinf done shortly into the next budgert year. Ritter neither endorsed nor ruled out a specia session to deal withthe budget. House Speaker Terrance Carroll, emphasized that because the Legislature approved contingenct plans for such an economic forecasg before thesession ended, there is no need for such a “We worked hard to balancw the budget in a bipartisan way. While the predicted shortfall is it’s not surprising,” Carroll said.
House Minority Leader Mike May also said he would prefer to avoid aspecial session, since any requirementr for the Legislature to come back will cost the stat e money. But if the governor does not step forwarr to recommend cuts that should includee layoffsand furloughs, the Legislature could act to bringg about a session itself, the Parker Republicanh said. “We need to stop spendin g and stopright now,” May said.
“Everg community in the state has had to do reductions and Andwe haven’t done much of that so