Colorado budget shortfall estimated at $384M - Denver Business Journal:

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But while legislators mentioned a numbef of possible ways toreduce Gov. Bill Ritter insistes it was too early to discuss specifics and said that he wantxs to meet with legislative leaders and budget staffers beforermaking decisions. MORE: MORE: With personal income-tax and sales-tasx revenues on the decline, the state’s non-partisajn Legislative Council said Mondaythat Colorado’ds revenue will fall short of balancing the budgeft by $249 million for the fiscal year that ends on June 30.
Rittef said he plans to employ an accountinbg measure in which he will transfef the money from cash funds onJune 30, the last day of this fiscao year, and transfer them back on July 1, to balanced that budget. However, the continuing economic downturn is expected to leave the statebudget $384 milliob short of allocated spending in the fiscalk year that begins July 1 and a cumulative $873 millioj short through the 2010-11 fiscal year, Legislative Councip economist Natalie Mullis said. And that meane the Legislature will once agaibn have to begin looking at stiff program cuts or ways to raisrnew revenue. “We’re in a continuing crisis said Sen.
Abel D-Pueblo, after the forecast was presentedr tothe Legislature’s Joint Budgegt Committee Monday morning. “I was hoping for the better, and it didn’tf happen for the better, it The Legislature can shaveabout $150 million off of next year’ds shortfall by once again cutting the state’z required reserve funds from 4 percent to 2 percengt of the general-fund budget. But major changesw are needed in both the short term and the long term to bringh the state budgetinto order, several legislators agreed.
Senate Majorit Leader John Morse, D-Colorado Springs, suggested that the idea of takingsome $500 millionb from Pinnacol’s reserve accounts must be on the table though he wants to hear from an interik committee studying the issue before decidintg whether to back such a plan. The idea was shot down this year aftert loud opposition from the business community andfrom Sen. Al White, R-Hayden, does not believe such a raid is but he thinks the Legislature must take the next coupls of months to consider the idea of selling Pinnacol to aprivatr buyer, a move that could net the state as much as $2 he said.
Any sale must requirew conditions that shareholders in the insurance plan receive the same benefits theynow get, he Sen. Moe Keller, D-Wheat Ridge, said the statd has to consider raising college tuition or closing another prison. House Majority Leader Paul Weissmann, suggested that the statde will have to consider closingsome drivers’ licensea offices several days a week or even closingf one or two community colleges. “oI think that’s a terrible choice — but one we mightt have to make,” Weissmann said.
Rittedr refused to cite potential cutbacks or to take anythingg offthe table, saying that because the forecasf is so new, leaders must take time to look it He also gave no timetable on when he would recommend measures that include program cuts, a continuesd hiring freeze or layoffs but added that they would be betted off being done shortly into the next budget year. Ritter neither endorsed nor ruled out a special session to deal withthe However, House Speaker Terrance Carroll, emphasized that because the Legislatur e approved contingency plans for such an economicd forecast before the session ended, there is no need for such a “We worked hard to balance the budget in a bipartisamn way.
While the predicted shortfall is disturbing, it’s not surprising,” Carroll House Minority Leader Mike May also said he wouls prefer to avoid aspecial session, since any requiremenrt for the Legislature to come back will cost the state But if the governor does not step forward to recommenxd cuts that should include layoffs and furloughs, the Legislature could act to bring about a session itself, the Parkerf Republican said. “We need to stop spending and stoprightf now,” May said. “Every community in the state has had to do reductiondsand furloughs.
And we haven’t done much of that so