Gov. Ritter Proposes Lean Budget For 2009-10

Press Release

GOV. RITTER PROPOSES LEAN BUDGET FOR 2009-10

Gov. Bill Ritter today unveiled a lean budget for fiscal 2009-10, a proposal that will hold spending well below the state's growth limit, stimulate Colorado's economy and ensure that state government is able to continue providing essential public safety, health and education services.

"The national and international economies are struggling under unprecedented uncertainties and challenges," Gov. Ritter said. "Fortunately, Colorado is weathering this storm better than many other states thanks to our New Energy Economy and other 21st century, knowledge-based industries of the future, such as aerospace, bioscience and technology.

"Also helping: a number of prudent steps I recently ordered to restrict spending and safeguard taxpayer dollars," Gov. Ritter said. "However, despite these precautionary steps and our focused business-development strategies, we will not escape these gale-force economic headwinds unscathed.

"Therefore, this weekend I have submitted to the legislature's Joint Budget Committee a frugal, conservative and balanced budget," Gov. Ritter said. "This is a budget that tightens state government's belt, focuses on critical services, and reflects the opening of a new state prison.

"The budget also makes strategic investments in job creation, job training and education so that our economy is well-positioned for a strong rebound when the downturn becomes an upturn."

The $19.2 billion budget proposal includes $7.9 billion General Fund, a 4.98 percent increase from the current 2008-09 General Fund of $7.5 billion.

An updated revenue forecast shows sufficient revenues to meet the state's authorized 6 percent growth limit, but Gov. Ritter has imposed a 4.98 percent cap in his proposal -- setting aside the remaining 1 percent, or $77 million, into an unprecedented reserve fund.

Gov. Ritter's budget proposal also calls for an economic-stimulus package of nearly $12 million for job creation, job training and business development.

In the event of worsening economic conditions, the Governor's Office of State Planning and Budgeting will submit plans to adjust both the current 2008-09 and the proposed 2009-10 budgets.

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