Gov. Hickenlooper Proposes FY 2017-18 State Budget
Press Release
Gov. John Hickenlooper today delivered the FY 2017-18 proposed State budget to the Joint Budget Committee of the General Assembly. Prepared by the Governor's Office of State Planning and Budgeting (OSPB), the request totals $28.5 billion, 3.3 percent above the current year's expected budget. In the General Fund (mostly income and sales taxes), the request totals $10.9 billion, 3.7 percent above the expected current year's budget.
"Colorado's economy continues to grow, though more slowly than in recent years. Within the confines of the competing requirements of the State Constitution and formulas in current law, this budget prioritizes the fiscal priorities of the state with a modest 3.3% increase," said Hickenlooper.
As with last year's budget, the request requires numerous balancing actions to match revenues and expenditures. The OSPB identified some $926.1 million in new constitutional and statutory demands on the General Fund against available new revenue of $426.0 million. These demands include:
New students and inflation in K-12 education: $243.5 million
Projected Taxpayer's Bill of Rights (TABOR) rebates: $195.0 million
Repaying the current year's reserve: $180.8 million
Statutory transfers to transportation and buildings: $164.0 million
New Medicaid costs: $142.8 million
Thus, the proposal closes a $500.1 million gap. The proposals to close the gap and support the request include:
1) Continuing a strategy adopted on a bipartisan basis for the FY 2016-17 budget, the request reduces the maximum allowed collections of the Hospital Provider Fee by $195 million, thereby preventing state revenue from exceeding the TABOR limit;
2) Not fully funding enrollment and inflation in K-12 education by $45.4 million. The "negative factor" in the new budget grows by this amount to $876.1 million;
3) During this year and next, reducing expected transportation transfers by $109 million;
4) Transferring $31.7 million in restricted severance tax dollars to the General Fund. To date, under Senate Bill 16-218 the General Fund has accommodated $100.5 million in support of declining severance taxes;
5) Transferring $46.9 million of unspent salary dollars that were set aside in recent years for employee compensation. This action supports the proposed total compensation request.
The funding plan restores the full 6.5 percent budget reserve in the General Fund. In the current year, revenue expectations have dampened since the adoption of the current budget and the State is using part of its reserve to fund the budget. However, Hickenlooper is proposing restoring the reserve so the state can be better prepared in the event of actual recession, not just slower growth.
d families. The request is comprised of $16.0 million for Governing Boards, $631,397 for other public institutions such as Area Technical Colleges, and $3.8 million for Financial Aid.
With this modest General Fund increase, it is anticipated that tuition increases will average around 6.0 percent statewide, with variation among the institutions ranging from 5.0 percent to 7.7 percent.
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