University Of Denver Researchers Warn Of Impending Colorado State Budget Crisis (INTERACTIVE GRAPHIC)

A non-partisan study conducted by DU's Center for Colorado's Economic Future paints a dire picture of the state's long-term budget. The report, released Wednesday, recommends lawmakers consider tax increases to augment state spending as budget cuts alone will not be enough.

A thousand-foot perspective of the problem: increasingly volatile inputs to the state's General Fund are not contributing fast enough to match the state's obligations. Health care, prisons, and education funding currently comprise the state's biggest financial commitments. According to an earlier report, "Colorado’s revenue system is more volatile than the revenue systems of the 50 states combined," contributing to what has been labeled an impending "state budget tsunami."

The report argues that, compounded by the previous decade's two recessions,

Even a strong recovery and sustained job growth over the next decade and a half will not produce enough income and sales tax revenue to afford Colorado's share of Medicaid funding and the state's payment for public schools under current constitutional and statutory provisions.

Without significant increases in revenue, researchers predict financial backing will fall out from public colleges and universities, the state court system, child protection services, youth corrections, state crime labs, and other core state government services. The sheer size of the imbalance, researchers say, likely prohibits an all-cuts solution. Even then, reverting taxes to 1999 levels is projected only to cover a quarter of the imbalance in 2024-2025.

Researchers acknowledge the difficulty of selling tax increases and spending cuts in tandem: "'pay more get less' is not exactly a politically popular message," said Charlie Brown, director of the Center for Colorado's Economic Future, "we're hoping this information can get out to build awareness of the cliff we're speeding toward."

INTERACT with the Center's models in their 'Bridge the Gap' graphic:

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flickr photo via Mr Lujan!

Comments

[PatrickforO]

02:04 AM on 09/02/2011

Well, Colorado is now taking 70,000 people off Medicaid. State and local governments all over the United States are going broke because revenues are down from sales, use and property taxes, and at the same time the federal government, which is the spender of last resort, is cutting the budget at the time when people need it most. I blame the neocons directly for this because of their 'starve the beast' devolution policies, which began clear back in 1980 and were a stroke of genius...if you hate the idea of a government of, by and for the people actually helping its people.

[nothingchanges]

10:39 PM on 09/01/2011

Colorado's budgetary future is in deep doo doo?

Why is this news? Why is this a surprise?

According to Republican Representatives of the Joint Budget Committee............."We're broke".

That was the reason for defunding a program costing $125.000 aimed at feeding poor children who came to school hungry (10 cents per child per day) and we can't afford it.

On the SAME day the same three members of the Republican Contingent of the JBC voted to extend 3 MILLION DOLLARS A YEAR in tax cuts to Pinnacol Assurance. The States largest Workers Compensation Corporation.

Remember Pinnacol? The Company that spent $318.000 in five days to take their top managers and some of their oversight board on a little golf junket to California? The booze tab alone was over $6,000.

Maybe it's not just a lack of money....................it the lack of common sense on how it's allocated. Or maybe it's the pandering to corporations, presumably for campaign funds?

Maybe next year the 3 Republican members of the JBC will get to go golfing in CA as well? After all................it's only 3 million a year, what are good friends for?