DENVER – Gov. John Hickenlooper’s budget writers on Monday unveiled a tough proposal for the next fiscal year, underscoring difficult cuts, despite rosier economic times.
Facing a constitutional cap on how much money the state budget can grow each year, budget writers proposed $373 million in balancing measures.
Higher education would be reduced $20 million – likely raising tuition rates – and the gap in full K-12 education payments – called the “negative factor” – would grow by $50 million, despite revenue from local property taxes increasing by $72 million.
The total budget request is for $27 billion, with $10.4 billion coming out of the General Fund. The fiscal year 2016-17 budget would represent a 0.4 percent drop compared with the current fiscal year.
“We had to make difficult decisions to find this balance that will affect health care providers, students from kindergarten through college and state workers,” Hickenlooper said in a statement.
Strong economic conditions in Colorado will result in taxpayer refunds to curb government spending, forcing budget writers to account for $289 million in rebates for the upcoming budget.
Henry Sobanet, the governor’s budget director, included a proposal to reduce the refund to $189 million by freeing up money from a fee paid to hospitals. The fee counts as revenue subject to refunds.
The governor’s office will need to work with the Legislature to make the money available. If the proposal passes, then hospitals would see the $100-million reduction, which could hit rural hospitals the hardest.
“What I know will happen is people will decide if they like these cuts, and then they can offer other ones, or do this,” Sobanet said. “It’s the Zen of where we are.”
Lawmakers – who must approve the budget – reacted with dismay.
“If this is not the fabled death by a thousand cuts, it comes pretty close,” said Rep. Millie Hamner, D-Dillon, a member of the Joint Budget Committee.
But Sen. Kent Lambert, R-Colorado Springs, chairman of the JBC, reacted differently, suggesting that spending overall is to blame.
“A lot of underlying problems still exist with regard to prioritizing funding and fundamentally reforming the unsustainable growth of government programs that are not performing as well as they should,” he said.
