Colorado’s state budget – the hits just keep on coming
State revenues will fall about $250 million short of appropriations for the fiscal year that ends next week, according testimony today by state economists before the Joint Budget Committee. Estimates from the economists are worse than their projections in March and show that the state's economy was weaker than anticipated in the second quarter.
To balance the budget, money will be transferred from cash funds and the reserve on June 30. As a result, there is no immediate need for the legislature to convene in a special session. However, these transfers will be repaid on July 1, pushing this year's shortfall into next year.
Including the $250 million from this year, Legislative Council economists project a $384 million shortfall for fiscal year 2009-10. The governor's economists project a smaller $81.8 million shortfall, which also includes the $250 million carried over from this year.