DENVER The 2012 legislative session is shaping up to be a three-way fight among scarce funding for schools, health care for the poor and tax exemptions for senior citizens.
Gov. John Hickenlooper presented his 2012-13 budget Thursday to the Legislatures Joint Budget Committee, and hes calling for another suspension of a property tax exemption for people over age 65, worth $99 million statewide.
Hickenlooper has cast his decision as a choice between cutting even more funds for school kids or cutting a tax break for seniors. Republicans are seeking to avoid that fight by instead offering the possibility of Medicaid cuts.
The disagreement went public Thursday.
Although the total state budget of $18.7 billion is increasing by more than $300 million, increased costs in Medicaid will eat up all of the expansion and more.
The state and federal government share costs for Medicaid, which pays doctors to provide health care for the poor. The program tends to expand when more people are out of work.
Its really a reflection of the continuing duress of our economy, Hickenlooper said.
Republicans, however, want to find the $99 million that would allow the state to restore the senior property tax break, and they are urging Hickenlooper to seek a waiver from the federal governments strict requirements on what the state must spend on Medicaid.
Several states have asked for Medicaid waivers, said Rep. Cheri Gerou, R-Evergreen, chairwoman of the JBC.
With all due respect, I do ask that you consider some sort of waiver request, Gerou told Hickenlooper.
Hickenlooper has made protection of the most vulnerable Coloradans one of his top budget priorities, and he asked Gerou what specific costs she wanted to avoid in Medicaid.
What would we ask for a waiver from? Do we want to take people off Medicaid rolls? Hickenlooper said.
In later comments to reporters, Hickenlooper said he did not think any sort of Medicaid waiver existed that would save Colorado $100 million or more.
He praised legislators for working with him to pass a bipartisan budget last year and thinks it can be done again.
We defined Colorado as a place that was willing to make compromises and difficult decisions across party lines in a way that most other states havent, Hickenlooper said.
The legislative session begins Jan. 11, and the budget must be passed by April.
Reach Joe Hanel at [email protected].
