Ritter’s budget cut plan hits higher education hardest
By Todd Engdahl on October 28, 2009 · Comment · 
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Colorado Gov. Bill Ritter
The latest round of budget cuts and transfers proposed Wednesday by Gov. Bill Ritter would preserve current levels of higher education spending in 2009-10 – but only by using federal stimulus funds that had been intended for use in 2010-11.
That means college and university spending faces an even higher “cliff” in 2010-11, and that the 2010 legislative session will face an even tougher challenge in trying to support higher ed.
Gov. Bill Ritter, left, and budget director Todd Saliman present budget cuts to the Joint Budget Committee on Oct. 28, 2009.
State funding for K-12 schools, protected by formulas this year except for a $110 million cut lawmakers are expected to take in January, isn’t part of the plan that Ritter and state budget director Todd Saliman unveiled Wednesday to the Joint Budget Committee and a hearing room packed with other lawmakers, bureaucrats, lobbyists and reporters.
But, 2010-11 K-12 spending is expected to take a hit regardless of Amendment 23. Administration officials wouldn’t elaborate Wednesday on their proposals for trimming education spending. Those should become clearer next week, because the governor is supposed to submit his proposed 2010-11 budget to the JBC on Monday.
Last spring, as the governor and lawmakers struggled with recession-induced revenue declines, the plan was to hold higher ed funding level for 2008-09, 2009-10 and 2010-11 by spending about $555 million in state tax funds and about $150 million in federal American Recovery and Reinvestment Act aid each year. (The college and university system receives additional funds from tuition and grants.)
The administration last summer announced that it would need to use an additional $80 million in stimulus funds to keep higher ed afloat this year. Doing so requires a federal waiver; that request is pending, although Saliman expects it will be granted.
But, under the plan announced Wednesday, the administration proposes using $376.5 million in stimulus money and only $329.5 from the state general fund for the 2009-10 fiscal year, a total of $706 million.
So, the 2010-11 budget will see “a net reduction in higher education,” Ritter told the JBC. Because of stimulus rules, however, policymakers won’t be able to go below $555 million in state support for 2010-11. So, at least they’re going to have to make up the difference between that figure and the $329 million.
Referring to the reduction, Saliman said, “There won’t be enough ARRA dollars to restore spending to $706 million.”
Asked about tuition at a later news conference, Ritter indicated he didn’t favor raising the tuition ceiling above 9 percent or giving college trustees control of tuition as a way of easing 2010-11 cuts.
Instead, Ritter said, he wants the tuition issue to be studied thoroughly during an upcoming higher education strategic planning process.
Check EdNews later for an expanded version of this story.
State Bill Colorado: Higher education will take the brunt of Ritter cuts
Key elements of Ritter’s budget cut plan:
* Higher Education (with 100 percent Recovery Act back fill): $145 million
* Recovery Act State Fiscal Stabilization Fund: $45.1 million
* Severance Tax Grant Funds: $37.4 million
* Medicaid Payment Adjustment: $16.3 million
* Suspend Clean Energy Fund Transfer: $14.2 million
* Refinance Certificates of Participation: $10.8 million
* Fitzsimons Trust Fund Cash Fund Transfer: $6 million
* Medicaid Provider Rate Reduction: $3.1 million
* TANF Refinancing: $3 million
* County Tax Base Subsidy: $2.8 million
* Department of Corrections Canteen Cash Fund Refinance: $2.5 million
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