Ritter on budget: 'Everyone must share sacrifice'
November 07, 2009 17:58 PM
DENVER - Facing an expected $1 billion shortfall in next year's budget, Gov. Bill Ritter is proposing that education spending be cut by $260 million and that the state bring in another $132 million by charging sales tax on candy and soda as well as online sales.
Under a plan submitted to state lawmakers Friday, some business-specific tax breaks would also be eliminated or suspended, including a sales tax exemption on agricultural compounds and bull semen, which would be worth $1.5 million a year. Ritter also proposed limiting conservation easement credits for three years, raising $13 million annually.
State workers would also take home less money in a move intended to avoid more furloughs. State workers pick up the state's share of their pension contribution - 2.5 percent of their salary - for a year to save $20.1 million.
State colleges and universities would receive $56 million less next year but would be given the power to increase tuition by up to 9 percent.
Ritter said the budget was fair and spread the pain among a variety of groups.
"We are asking everyone to share in this sacrifice," he said.
His proposal is for the budget year that begins in July 2010 and it still has a long way to go. Next week, Ritter plans to make his case to members of the Joint Budget Committee. Those state lawmakers actually write the budget that will submitted and debated in the full Legislature next year and they can adopt or disregard parts of Ritter's proposal.
Rep. Kent Lambert, a Republican committee member, said voters should be asked to weigh in on any tax changes because the Taxpayer's Bill of Rights requires all new taxes be put to a vote.
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