Power Struggles within the Realm of Government and Policy Making
Colorado Governor Announces Major Spending Cuts to Address Budget Deficit
Colorado Governor Jared Polis has announced a series of spending cuts totaling $103 million across various state agencies, in an effort to address the state's current budget deficit of $783 million.
The cuts were made through an executive order and include halting a pay increase to health care providers that serve low-income Coloradans, as well as slashing nearly $55 million from the department that oversees the Medicaid program.
The estimated new revenue from the legislative actions was $250 million, leaving the state with about $500 million it still needed to find. To address this shortfall, about a third of the deficit will be addressed with new revenue, another third by midyear spending cuts put in place by Polis, and the final third by dipping into the state's rainy-day fund. Polis plans to use up to $328 million from the state's rainy-day account to close the projected budget gap.
One cut eliminates $131,000 that was slated for outreach as part of a program to provide health benefits for children who are undocumented immigrants. Sen. Barbara Kirkmeyer criticized Polis for cutting the rates paid to health care providers who serve Coloradans on Medicaid, stating it will impact everyone and put even more stress on the health care infrastructure system.
The legislative actions also authorized the sale of $100 million in tax credits that would count against collections in future years. Additionally, the measures put in place will have an estimated impact of nearly $830 million, allowing for some extra cushion.
However, the cuts have not been without controversy. Sen. Barbara Kirkmeyer had sought to freeze tax rebates during tight budget years, including those aimed at the lowest-income Coloradans, but her call was not taken up by the governor. Rep. Jeff Crank stated that Polis and the Democratic legislature need to get serious about spending and criticized them for spending on their "woke agenda" and taking care of illegal immigrants.
Delanie Bomar, a spokesperson for Rep. Gabe Evans, criticized Polis, stating that Democrats are seen as weak and message-less when their toughest move is mailing a pen. Polis plans to send ceremonial signing pens to all four GOP U.S. reps as a move usually reserved for people who instigated or worked closely to pass a state bill into law.
The legislative actions passed by the Democratic majority resulted in cuts of about $150 million in tax incentives for businesses. Colorado was particularly vulnerable to the federal tax changes enacted by Republicans because it uses rolling compliance with the federal tax code, meaning that the state felt the effects on state income taxes immediately.
It is important to note that the name of the Republican representative who complained about Gov. Jared Polis reducing payments to healthcare providers serving Coloradans on Medicaid is not found in the provided search results.
As the state continues to navigate these challenging financial times, it is clear that difficult decisions will need to be made in order to address the budget deficit and ensure the long-term financial stability of Colorado.
