28 October 2009

Colorado Makes Deeper Cuts To State Budget

Governor Ritter is offering up a new round of state budget cuts to the tune of $286 million, on top of prior cuts, "including reductions in Medicaid provider rates and $145 million from higher education. The cuts come on top of the $1.8 billion budget shortfall the state has already covered over the past year." Revenues are down, Medicaid costs are up, and previously announced cuts to the corrections budget through early releasees were halted.

TABOR greatly limits increases to tax revenues in the short term, so cuts have to come almost entirely out of unresitricted spending.

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