CO Facing $1.1 Billion Shortfall Next Year

Colorado is facing a $257 million shortfall for the 2010-2011 fiscal year. And that’s the good news. According to Colorado’s official Economic and Revenue Forecast, the deficit could be has high as $1.1 billion.

Tax revenues are expected to go up over the next few years but they aren’t going to be enough to cover all of the spending happening at the state level. For all those TABOR haters out there, you should know that TABOR is not restricting the revenues that the state can take in.

Lame duck Governor Bill Ritter has issued a statement on the economic forecast.

Today’s forecasts are a clear reminder that Colorado’s economic recovery is not nearly as robust as Coloradans want or need. Economic growth remains volatile and sluggish, and Colorado families and businesses are not yet seeing healthy, sustainable or certain growth in their bottom lines, while government agencies also continue to face difficult budgets.

It doesn’t help that state Democrats have done their best to kill the state economy through a series of tax hikes new fees. Add to that all of the uncertainty caused by ObamaCare and Congressional Democrats and it’s a recipe for economic disaster.

We will do what we can to minimize pain and protect essential services. We’ll continue to employ a strategy of shared sacrifice and solutions, and we are going to remain aggressive about economic development so Colorado is well-positioned for a strong, sustainable and healthy recovery.

Here’s a idea. How about eliminating all of the grants Colorado has been awarding? When you’re broke, you can’t go around giving away money you don’t have. Of course, the state would have already made a lot of the necessary cuts if they hadn’t been depending on $550 million in one-time cash from the Federal government.

Governor Ritter will announce his proposed cuts by the end of October. The catch is, it will be another governor overseeing the budget process when the state Assembly reconvenes in January.

The full report is embedded below.

Colorado Economic and Revenue Forecast Sept 2010

(Originally posted at PerlStalker’s Ramblings.)