Colorado state budget
From Sunshine Review
Colorado is facing what the University of Denver, Center for Colorado’s Economic Future has described as an “Economic Tsunami.” The Colorado Generally Assembly had just ended its session on May 6, 2009 having addressed a $1.454 billion, two-year shortfall[1] when a subsequent economic forecast on June 22, 2009 showed a new state deficit well over $300 million.[2] Gov. Bill Ritter announced August 18, 2009 his plan to close the latest $320 million budget gap for the current FY 2010 (July 1, 2009-June 30, 2010).[3]
Gov. Ritter’s plan has a 9% overall reduction in spending that includes $263 million in cuts and eliminating 270 full-time equivalent state positions. [4] The Colorado General Assembly took measures during the 2009 Session to balance the $7.5 billion FY 2010 General Fund budget through measures that included: [5]
- $760 million from one-time federal stimulus money[6]
- $77 million in cuts
- 255 million in new taxes
- Furlough days (8 per year) for state employees
- Wage freezes
- Hiring freezes
- Transfer of $35 million from tobacco money to General Fund
- One-year suspension of senior citizen property tax exemption for $90 million
- Reduced percentage of sales tax collected vendors can keep for administrative costs from 3.33% to 1.35% to increase state revenue an estimated $93.3 million over the next 3 ½ years.[7]
Colorado anticipates being hit with another budget deficit of $500 million in FY 2011. [8]
General Fund Revenue Collections: FY 08-09 compared to FY 07-08[9]
| FY 2008 | FY 2009 | Percent Change | |
| Individual Income | $4,974 | $4,424 | -11.1% |
| Corporate Income | 507.9 | 350.9 | -30.9% |
| Excise/Sales Taxes | 2,411 | 2,265 | -6.0% |
| Other | 258.1 | 246.4 | -4.5% |
| Total | 8,151 | 7,287 | -10.5% |
All figures in millions, and include revenues collected for State Education Fund, based on March 2009 forecast.
[edit] Budget Background
Colorado’s state revenue increased annually 1.9% for the period from FY 1999 to FY 2009 while three of its largest General Fund appropriations (K-12, Corrections, and Health) grew 5.4% each year on average. These three spending categories have grown from 54% of the General Fund budget in 1999 to 76% within a decade. They are estimated to increase their portion of the budget to 91% in five years. [10]
Colorado's fiscal year begins July 1 and ends June 30. State departments submit their budget proposals to the Governor's Office of State Planning and Budgeting as part of the executive budget process. The Governor and his staff review the budget proposals and limit each department's budget request based on the Governor's priorities, and they determine which new funding initiatives may be included in the request. [11] Departments submit budgets to the Joint Budget Committee by November 1. Shortly there after the committee schedules hearings with each agency. The staff analysts brief the Committee on each budget request a few days prior to the hearing with a department. Briefings and hearings for most departments are scheduled in November and December. By February 1, the Legislature is required to certify, by joint resolution, the amount from the state's General Fund available for appropriation for the next fiscal year. Once the General Assembly convenes in early January a series of hearings and joint budget meetings that run both through the House and the Senate. Both houses must accept the final bill before it is signed into law. [12]
See Colorado state budget (2008-2009) for more information.
[edit] Accounting Principles
Office of the State Auditor reports to The Legislative Audit Committee. The Legislative Audit Committee (LAC) is a permanent standing committee comprised of four senators and four representatives with equal representation from the two major political parties. The Committee is responsible for reviewing and releasing audit reports and recommending special studies. The LAC also recommends an appointment for State Auditor to the leadership of the General Assembly every five years. Sally Symanski is Colorado’s State Auditor. Audit reports are published online.[13]
| Credit Rating | Fitch | Moody's | S&P |
| Colorado[14] | NR | Aa3 | AA |
The Institute for Truth in Accounting (IFTA) rates Colorado “Timely” in filing the state’s Comprehensive Annual Financial Report (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider Colorado’s CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.[15] Colorado’s State Controller is responsible for filing the CAFR. The State Controller is David J. McDermott, appointed April 1, 2008.[16]
Colorado currently does not have a statewide spending database online, but the state will have one by no later than January, 2010.[17] According to Governor Ritter's 2009 State of the State address, "...we're making government more modern and transparent by putting more services online and soon, working with Treasurer Kennedy's Office and Representative Marostica, we'll have the state's checkbook online."[18]
On June 4, 2009, Governor Ritter signed Colorado House Bill 1288, the "Colorado Taxpayer Transparency Act," into law. HB 1288 mandates the creation of an online spending database by no later than January, 2010.[19] This law will increase Colorado's transparency beyond what Governor Ritter's original executive order (from April 2, 2009) had required.[20][21]
The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:
| State Database | Searchability | Grants | Contracts | Line Item Expenditures | Dept/Agency Budgets | Public Employee Salary | Exemption Level |
|---|---|---|---|---|---|---|---|
| None | n/a | n/a | n/a | n/a | n/a | n/a | n/a |
[edit] References
- ↑ The Capstone Group, “2009 Session Summary,” May 6, 2009
- ↑ University of Denver, Center for Colorado’s Economic Future, “Colorado’s State Budget Tsunami,” July 2009
- ↑ Gov. Ritter’s Office, “Press Release: $320 M Budget-Balancing Plan,” August 18, 2009
- ↑ Gov. Ritter’s Office, “Press Release: $320 M Budget-Balancing Plan,” August 18, 2009
- ↑ Colorado Capitol Journal, “House Gives Final OK to FY 2010 Budget,” Friday, April 17, 2009
- ↑ Colorado Economic Recovery Accountability Board, “Overview of the SFSF,” June 11, 2009
- ↑ Denver Business Journal, “Colorado businesses keep smaller share of sales-tax revenue under new law,” March 3, 2009
- ↑ University of Denver, Center for Colorado’s Economic Future, “Colorado’s State Budget Tsunami,” July 2009
- ↑ Tomlinson & Associates, “2009 Colorado General Assembly Legislative Session Review,” June 6, 2009
- ↑ University of Denver, Center for Colorado’s Economic Future, “Colorado’s State Budget Tsunami,” July 2009
- ↑ State of Colorado,"Budget Process and schedule," retrieved March 19,2009
- ↑ State of Colorado, "The role of the Joint Budget Committee in the budget process," retrieved March 19, 2009
- ↑ Office of the State Auditor Web site, retrieved October 11, 2009
- ↑ "State of Indiana", “State Credit Ratings-as of June 24, 2009
- ↑ Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
- ↑ Office of the State Controller Web site, retrieved October 12, 2009
- ↑ Colorado Taxpayer Transparency Act
- ↑ Denver Post, "Full planned text of Ritter's State of the State speech," January 8, 2009
- ↑ Colorado Taxpayer Transparency Act
- ↑ National Taxpayers Union, "Transparency Has Arrived in Colorado," June 8, 2009
- ↑ National Taxpayers Union, "Taxpayer Group: Three Reasons Gov. Ritter's Transparency Order Doesn't Shed Light on Denver," April 2, 2009
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