Colorado Budget Deficit: Shortage Of Funds Means Cuts Will Carry Over To Next Fiscal year

06/21/2010 03:47 pm ET | Updated May 25, 2011

Even after billions already cut from the state budget, Colorado Governor Bill Ritter announced Monday that the latest economic forecast still puts the state in the red.

From the AP:

On Monday, Gov. Bill Ritter's budget analysts told lawmakers the governor is going to be forced to declare a fiscal emergency, giving him the power to cut $75 million from next year's budget after this year's budget failed to meet a 2 percent reserve requirement.

Budget analysts warned lawmakers more banks are expected to fail this year and the economy will continue to falter because of continuing problems with the construction, real estate, banking and financial industries.

Fewer employees are working longer hours and more people are delaying taxes.

If Congress fails to extend supplemental payments for Medicaid, the state could be forced to cut another $212 million from next fiscal year's budget, which begins in just two weeks.

The economy did, however, show signs of modest improvement.

"Colorado's economy continues to recover, but it is slow, uncertain and marked by fits and starts," Governor Ritter said in a statment.

Read the report below:

Economic and Revenue Forecast June 2010