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Legislative Updates

Update on the Colorado State Budget

News Release :: August 10, 2010

Congress passed the Jobs/FMAP bill in the House and the president is set to sign it today at 5pm. This is good news for Colorado.

OSPB Meeting

This morning the governor's office updated lobbyists on the budget balancing package to address the current shortfall. With the passage of Jobs/FMAP the shortfall numbers will be adjusted as follows:

The anticipated budget for Jobs/FMAP was $212M; we are going to receive $149M.
The Jobs/FMAP bill will give Colorado $159M but 2% can be withheld for administrative costs, leaving $156M for distribution.
Originally the shortfall was $205M and would have included cuts to K-12 in the current budget year; with Jobs/FMAP passage the current shortfall for 10-11—based on the June forecast—is $60M. We specifically asked if K-12 was excluded from the $60M cut and was given a vague answer that everything was on the table. We will take that to be a yes—K-12 will see a mid-year rescission.
It is anticipated that the shortfall will increase in September and K-12 will definitely be a part of the balancing package beyond the $60M shortfall we have now. The actuals are coming in slightly lower at this point, but it's too early to gauge specifics.
The governor is announcing his budget balancing package on August 23.
The governor presents his FY 11-12 budget on November 1, a day before the election. The incoming governor is not bound by the current governor's budget in any way. I estimate a $500M shortfall, which includes caseload increases, ARRA funding ending, but there is no sneak preview.

— Salazar & Associates

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