Colorado Gov. Bill Ritter is proposing to cut current state support of schools by $156.3 million, money he said would be replaced by the $159 million in federal Edujobs funding recently awarded to the state.
The governor announced his latest budget balancing plans to reporters Friday afternoon. He鈥檚 trying to cover a $262 million shortfall indicated by revenue forecasts last month and also wants to transfer money from a couple of severance tax funds (including one intended to fund higher ed. construction projects) to the general fund and delay some Medicaid payments.
He didn鈥檛 propose any higher education cuts, but his plan involves swapping various state and federal funds between K-12 and higher education. The net effect, according to his budget office, is no reduction for either.
The plan also includes $35 million in cost savings that will be used to maintain the state reserve at 2.5 percent.
Administration officials had quietly warned school districts not to use Edujobs cash to hire new staff or rehire people who鈥檇 been let go because of earlier state budget cuts. However, federal rules don鈥檛 allow the state to dictate specific uses of the money to school districts, although those rules do require district use the money for personnel costs.
The governor said taking state funds from K-12 won鈥檛 violate federal rules about 鈥渕aintenance of effort鈥� in supporting education. 鈥淚t鈥檚 absolutely in our ability to do that.鈥�
Ritter wouldn鈥檛 show his hand when asked about his proposed levels of K-12 and higher ed. spending for 2011-12, due to the legislative Joint Budget Committee in a little more than a week. He did say, 鈥淗igher education funding will be cut again in 2011-12 in our budget.鈥� He also said the latest K-12 reduction won鈥檛 necessarily reduce the base he will propose for next year.
He acknowledged there will be 鈥淎 significant shortfall, in the hundreds of millions,鈥� and that whoever is elected governor is 鈥済oing to have to look at cuts.鈥�
The governor took some subtle shots at critics (Republicans) of his budget balancing efforts. 鈥淲e hear a lot of rhetoric, especially these days,鈥� Ritter said, calling such criticism 鈥渃ompletely disingenuous.鈥�
Every time Ritter announces a budget-balancing plan, Republican legislators ritualistically criticize it for not cutting enough, relying too heavily on transfers from various state cash funds and/or for depending on federal stimulus money. Republicans also have criticized the 2010 legislature鈥檚 decision to raise revenue by ending some tax exemptions.
Ritter was not at all defensive Friday, saying GOP tactics would have resulted in even higher cuts to education and that use of stimulus money was vital.
Noting that the state鈥檚 received $300 million from Washington this year in Edujobs funds and higher-than-standard Medicaid reimbursements, Ritter said, 鈥淚f we didn鈥檛 have that money in 2010-11 those cuts would have come from K-12.鈥� The governor鈥檚 budget office estimates that would have meant a loss of 5,000 teaching jobs and additional higher ed cuts totaling $89 million.
Overall, the state has received $1.66 billion in stimulus funds over the last three years for use in the state budget, not counting earmarked money for things such as highway construction.
Ritter did inject a bit of optimism into his meeting with reporters, saying, 鈥淭he economy is stabilizing and recovering鈥� and that 鈥淐olorado remains in better shape than many other states. 鈥� I don鈥檛 think it鈥檚 going to get worse [beyond next year] because the economy is recovering.鈥�
State law requires the governor to propose budget balancing measures if certain levels of revenue decline are forecast. Some of the measures, though, will require legislative approval next year.
Ritter and the legislature have had to cover $4.5 billion in shortfalls over the last three budget years, including the current 2010-11 year. That鈥檚 been done through cuts, some revenue increases, federal aid, shifts from cash funds and other tactics.
