'Painful' forecast: State could be $631 million short

DENVER - State government leaders are spending the holiday dealing with a struggling economy, asked by Gov. Bill Ritter (D-Colorado) to find 10 percent in savings because of budget shortfalls that could reach hundreds of millions of dollars.

The word "pain" is being voiced by Democrats and Republicans alike.

"I think we can all feel the pain when we're out doing our holiday shopping. We all know there's pain in the economy," said Rep. Mark Ferrandino (D-Denver), who serves on the Legislature's Joint Budget Committee which oversees the state's government spending. "We in the Legislature are going to need to feel some pain and I think all across government, there's going to be the need to share the pain, share the cuts throughout the entire state budget."

Recent information from state economists showed budget shortfalls could be as high as $631 million in the 2008-09 fiscal year, meaning cuts would need to be made by June 30.

Looking ahead to the upcoming budget, total cuts could amount to $1 billion.

Earlier this week, the governor asked his department heads to identify 10 percent of savings in case they're needed to balance the budget.

Colorado law requires state lawmakers to operate with a balanced budget.

Some lawmakers say cuts from the 2002-03 recession have been largely restored the last few years as state government has grown by record amounts without creating so-called rainy day funds for future economic downturns. Now, they say while cuts will be tough, there are savings to be found.

"When I was a kid and I thought I was overweight, my mom just called me big-boned," said Rep. Cory Gardner (R-Yuma). "If we're saying the state budget's been cut down to its bone, then I'd have to say it's an awful big-boned state budget."

"There are very noble causes that are funded in the budget, from health care programs to education programs to transportation programs, but when you're facing a $600 million-plus shortfall, there are no sacred cows in the state budget and there shouldn't be," said Gardner.

Ferrandino says a hiring freeze and construction freeze implemented by the governor in the fall has helped and could save roughly $100 million.

Some lawmakers have proposed simply eliminating funding for higher education as a way to balance the budget, but worry the impact on tuition could be overwhelming to parents.

Ferrandino says he will push for transparency and equality in the cuts while simultaneously promoting economic development programs when lawmakers return to work in a couple of weeks.

"We're going to have some tough decisions," he said. "If we can't energize our economy and make sure people have good-paying jobs, this budget shortfall's going to continue for years to come."