State Revenue Projections Show Dark Clouds Over Schools, Future (CO)

June 22, 2010

We could be in the eye of the storm right now, but rougher waters are ahead for the next year or two. That’s the message tucked into revenue projections for the state of Colorado released Monday. They show that Colorado will be able to pay all its bills for the fiscal year ending next week, but the next 24 months are clouded with far more uncertainty. Governor Bill Ritter may need to present a plan to close a budget hole between $75 million and $320 million for the upcoming 2010-2011 budget.

Natalie Mullis is an economist with the nonpartisan Colorado Legislative Council, and she says Coloradans should expect to see services reduced.

"Even though $75 million in budget cuts is a lot smaller than what the state has already done, because the state has already cut so much, probably people will notice it."

Adding to the uncertainty, that same budget also includes over $200 million in funding from the federal government for Medicaid and other programs, which remains stalled in the Senate. But Mullis says the darkest cloud on the horizon is a seemingly-unavoidable projected revenue shortfall for the 2011-2012 budget, which could be as much as $1 billion.

Lisa Weil, who is policy director for Great Education Colorado, says the news of more cuts is especially tough to take for the state’s schools.

"There’re going to be bigger class sizes, there’s going to be higher tuition. Colorado’s going down a path that we started decades ago, but we’re just falling off a cliff."

She suggests the state find more revenue to turn that trend around, and it may be up to the voters.

Weil says most schools are currently wrapping up their budgets for next year, but now they may have to re-open them and look for more ways to save.

"There’s no fat left; they’ve already made difficult decisions and they’re going to have to re-open it and do it again."

She says that could mean moving to a four-day school week, furloughing teachers, or cutting programs such as art, music, language arts and summer school.