November 2009 Reminder

REMINDER FOR NOVEMBER COFFEE

 Don’t forget to join me on November 5, 7:30 - 8:30 a.m., at Panera’s, 7739 Wadsworth Blvd., for coffee (or tea or breakfast). I don’t have agendas for these Legislative Coffees and I don’t put on programs – so take advantage of the opportunity to chat with me about issues of concern to you. I am hosting these on the first Thursday of every month.

UPDATE ON STATE BUDGET

On Wednesday, October 28, Governor Ritter announced the cuts he is making in order to balance the state budget, as a result of the additional $318 million shortfall in state revenue indicated in the fall revenue forecast. The Governor is required to make budget adjustments during the time the Legislature is not in session. The following are the main cuts or adjustments being made:

• Higher Education – cut $145 million from the General Fund and fully backfill with ARRA money.

• State Fiscal Stabilization Fund – use $45 million of federal ARRA (stimulus) money that is given to states from this fund to help balance their budgets.

• Severance Tax Grant Funds - $37 million withheld from distribution until June 2010.

• Medicaid Payment Adjustment - $16 million of Medicaid payments for the end of the fiscal year will be delayed two weeks, shifting them to the next fiscal year.

• Eliminate Clean Energy Transfer - $14 million from gaming revenues will go to the General Fund rather than to the Clean Energy Fund.

The Governor and the Legislature do not have many places to make cuts from, because 97% of the state budget (General Fund) is devoted to just 5 areas:

• 43% for K-12 Education – which is required to increase annually and cannot be reduced because of Amendment 23.

• 21% for Health Care Policy and Financing – which covers Medicaid and other federally mandated health care entitlement programs, increasing because of the bad economy.

• 14% for Corrections, Public Safety, and Judicial – which are the components of our state justice and prison system.

• 9% for Human Services – which covers the most vulnerable populations, including the disabled, mentally ill, and children who are the victims of abuse or neglect.

• 8.8% for Higher Education – which includes our state universities, state colleges, and community colleges and is the most flexible area of the budget; most of its funding has been preserved with stimulus money.

To get further information about the State Legislature, go to the General Assembly website at www.leg.state.co.us. For more information about the Senate Democratic Majority, go to www.coloradosenate.org/home.