Full Responses to the Denver Post's Budget Questions

Press Release

A recent Denver Post story implied that we would not provide specific fixes to address the state's budget crisis. We believe the state's fiscal situation is extremely complicated and can't always be boiled down to simple yes or no questions. Adequately explaining budget fixes also cannot happen within the Denver Post's 325 character limit. Here are our full responses to the Denver Post's budget questions.

Last year lawmakers suspended a property tax exemption for seniors. Do you support continued suspension of the so-called "homestead exemption" in 2011-12, saving the state $96 million?

Support: Oppose: No Position:

I'm not happy about it, but at least for the time being it is the lesser of evils because 97% of the general fund budget goes to K-12, higher education, health care, human services and public safety. It would be virtually impossible to repeal this temporary suspension without deeply cutting where we can afford it least.

Are there any other 'one-time actions' you would consider in balancing the state budget?

The Governor has made use of most of the one-time fixes available, but there are some options, such as the severance and Perpetual Base Account money, the governor has already set aside. These two items alone could total up to $40 million. Unfortunately, these kinds of cuts also have real impacts on communities and should not be taken lightly. However, our intention would be to only use these kinds of fixes in the short term.

We believe there are still significant savings by centralizing services among state agencies, such as information technology.

Still, we need to take a longer view. In Denver, we've established a proven track record of overcoming significant budget shortfalls and balancing tough budgets. We will bring this experience to the state budget as well. Innovation, efficiency and accountability are tools we have used to successfully manage an operating budget of $1.4 billion across all funds of the City. Here are a few examples of our record of success:

* Balanced eight annual budgets;
* Implemented personnel system reforms that supported stronger pay-for-performance while ensuring a more sustainable compensation structure for employees;
* Evaluated programs for duplication, overlap and inefficient and ineffective delivery of services by requiring departments to collaborate to find efficiencies;
* Streamlined, increased effectiveness, and reduced costs by consolidation of information technologies, human resources, purchasing, contracting and other shared services;
* Leveraged resources through partnerships with both the for-profit private sector and the not-for-profit community;
* Refinanced bonds and investments to ensure lowest costs and maximum earnings;
* Engaged city employees to collect and implement ideas to improve the efficiency and effectiveness of city operations. This created buy-in and partnerships during difficult financial times.

For the first time since Amendment 23 passed, K-12 schools took a net hit in state funding. They lost $260 million in the 2010-11 budget. Do you support further cutting the state's K-12 budget and by how much?

The link between education and economic prosperity is well established, so no one wants to cut funding for education. Given current forecasts, it is unlikely we could restore last year's cuts to K-12 immediately. Whether or not we can maintain current funding levels for K-12 education will depend on a variety of factors (revenues, efficiencies found in others areas, etc.) that impact the total state budget. If the state revenues decline again, the reality is we may have to make cuts in education.

Lawmakers in the 2010 session repealed or scaled back a number of tax exemptions, credits and breaks that were estimated to generate more than $100 million in revenue. Would you restore these tax breaks?

Support: Oppose: No Position:

We want to restore these exemptions as quickly as it is feasible. The state faces a massive budget shortfall. We don't need to add to a funding gap that already exceeds $1 billion next year. We may be able to restore targeted exemptions or credits sooner if state revenues recover faster than anticipated, but nearly all the changes are scheduled to expire after two or three years.

Can you rule out elimination of additional tax exemptions?

Support: Oppose: No Position:

Without knowing the future, it is impossible to answer this question, but any decision on exemptions or tax credits would be made in close conjunction with the business community. We need to look at every aspect of the budget to determine how we can spend money smarter and provide services more efficiently.

Higher education represents the largest, unprotected chunk of the state's budget. Schools have been granted more leeway to raise tuition as they deal with $62 million in cuts this fiscal year and brace for the lost of another $89 million in federal stimulus money. Do you support additional cuts to higher education in the coming fiscal year? Is their a percent beyond which you would not like to see tuition raised in a single year?

There is no better return on our investment in economic development than our investment in higher education. At a time of increasing global competition for the jobs of the future, we cannot afford to let Higher Education fall off the budget cliff. Excellence in Higher Education is a necessary bridge to economic prosperity. The Colorado Commission on Higher Education recently adopted a higher education funding plan for FY 11-12 that would maintain General Fund support at the current level. I agree with that goal and look forward to an impending report by a citizen's panel charged with developing a strategic plan for higher education that is due later this year.

The recently adopted Senate Bill 10-003 requires that higher education institutions that want to raise tuition must prove they will protect affordability and access by providing adequate financial aid for those who need it. This requirement is critical. Higher education must continue to be affordable, accessible and of high quality to the people of Colorado.

Policymakers saved $19 million last year by releasing certain prison inmates months early. Meanwhile, they spent just more than $11 million opening or keeping open targeted prison facilities. Which, if either of these policies do you support, and what cuts would you make to the state's prison budget?

Governor Ritter, a prosecutor for more than 20 years, made decisions to take non-violent criminals and integrate them into society in a way that should ensure the public remains safe, and the state is able to save money. If this program continues to prove to be successful in saving taxpayer money while keeping our citizens safe, then it is the kind of efficiency we need to find to protect programs like education. We need to spend state dollars strategically to reduce use of the most expensive services, such as prisons and emergency rooms, while at the same time keeping Colorado residents safe.

If elected governor, I will veto any fee hikes that come across my desk.

Support Oppose No Position

The state furloughed employees for eight days in the 2009-10 fiscal year, saving $16 million in general fund expenditures. There have been no furloughs in the current year. Would you support furloughs next year if similar savings could be achieved?

All options for saving and efficiencies in the state budget must stay on the table and balanced against each other to create the appropriate spending plan.

What, if any, further steps would you take to reduce employee compensation or total payroll?

We will conduct a thorough review of state personnel to determine where savings can be achieved. However, we will not make overly simplistic statements to eliminate a random number of employees. State employees deliver essential state services. The question is really what services can we make more efficient. That is how personnel savings can be achieved. During my time as Mayor, government did more with less because we increased efficiency, streamlined redundant services and saved money through purchasing, shared services and regional cooperation.

The state recently expanded coverage for Medicaid and CHP+ to cover more uninsured children, pregnant women and single adults living at the federal poverty level. What would your stance be if there were efforts to roll back eligibility for these health care programs?

Support Oppose No Position

We need to do everything we can do to ensure as many people in Colorado as possible have health care coverage. We know that coverage will take us on the path to affordability. I am committed to working closely with the private sector and federal government to identify funds that will allow us to fill gaps in services and ensure any additional cuts to our already strained budget are absolutely necessary. We will work to prevent any additional cuts, but if budget deficits are as large as projected, we may lose our ability to continue to expand coverage.

What else would you like voters to know about the way you would manage the state budget?

The next governor of Colorado should be able to demonstrate the right experience in business and public service to assemble the right people to the table to make tough budget decisions. We have listened to the people of Colorado throughout this campaign and everyone knows this next year - and likely future years - will involve very tough choices.

A healthy balanced budget requires long-term planning so Coloradans know where we are going and how we will get there. In collaboration with the State Legislature, we will implement new budgeting strategies to make the budget process more innovative, cost-effective and accountable. Some of the ideas we believe make sense include:

* Demand collaboration within state government and streamline administrative services to ensure that our costs are competitive. By requiring agencies to submit coordinated budget initiatives we will break down barriers and improve program efficiency and effectiveness.
* Seek input from the private sector and state workers to identify the best way to cut spending as needed while ensuring critical services are provided. Some of the best ideas are in the minds of those on the frontline in both the private sector and state workforce.
* Review all budget decisions through the lens of job creation and economic vitality. When writing the budget we will ask how decisions impact our ability to create and retain jobs while providing the foundation of a strong education system and other services that help make Colorado a place that businesses want to locate and where their employees want to raise their families.
* Either consolidate multiple economic forecasts into one unified forecast or require more coordination of existing forecasting. The existing silo approach to economic forecasting makes it difficult to budget and creates confusion for stakeholders.
* We will work to develop budget planning estimates that reflect long-term needs of the state and opportunities and challenges in the years to come. Regular estimates of future spending needs in key areas will enable the state to plan ahead and change course to when necessary.

The Colorado Spirit: In addition to making the budget process more efficient, rational and transparent to Colorado's citizens, we also recognize that the global economic recession has placed enormous strain on the state's ability to provide funding to educate our kids, protect our communities and keep Colorado competitive. A key strategy for balancing Colorado's budget is to re-energize the economy with more jobs and expanding small businesses. Our strategy for the next decade of tough budgets has to be relentlessly focused on job creation and an economic development agenda that puts Colorado ahead of other states.

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