Colorado's Ritter Signs $17.8B Budget; $774M for Capital Projects
BYLINE: Richard Williamson
DATELINE: DALLAS
A $17.8 billion budget passed by Colorado's newly Democratic General Assembly and signed last week by a new governor of the same party contains $774.2 million in spending authority for capital projects and increases transportation spending by 2.6%.
Despite the Democrats' control of the statehouse and the governor's mansion, the budget was essentially the same one introduced by former Gov. Bill Owens, a Republican whose eight-year tenure ended in January.
However, Democratic Gov. Bill Ritter was able to make some changes, including more funds to combat prison recidivism and an $8.1 million increase in funding for mental health and substance abuse programs. Education spending got an 8.5% increase from the previous year under Ritter's budget.
"The people of Colorado elected us to solve problems," Ritter said. "This is a bipartisan, bicameral budget that attempts to do just that -- solve problems and spend taxpayer dollars wisely while living within our means."
Funding for capital construction represents a 61% increase over the previous year and includes $36.9 million to build a state prison and $13.1 million for certificates of participation for the former Fitzimons Army Hospital site that is now being used by the University of Colorado Health Sciences Center.
While most of the construction projects authorized under the budget are being funded by the agencies and universities' own resources, $238.5 million will be spent from the state's Capital Construction Fund, according to Ritter.
The CCF funding will go to 10 college campuses and three prison projects.
Also covered are a new Colorado State Veterans Center and a new High Security Forensics Institute to be built in Pueblo.
Transportation spending rises from $1.03 billion in the current fiscal year to $1.06 billion in the upcoming year starting July 1.
The Highway Users Tax Fund, which is the major source of funding for the Colorado Department of Transportation, is expected to total $782.4 million in the coming fiscal year, according to budget projections.
The HUTF includes $532.9 million from the state's motor fuel tax and $249.6 million from motor vehicle registrations and other fees.
CDOT has issued all bonds allowable under current limits, according to its budget request. The department's tax revenue anticipation notes have financed $1.5 billion worth of projects. Debt service payments for the coming fiscal 2008 total $167.9 million.
Revenue from CDOT's Colorado Tolling Enterprise created by legislation in 2002 is expected to increase 22% to $5.12 million. Designed to finance and operate toll highways in Colorado, the CTE last year opened its first toll lane on Interstate 25 between downtown Denver and US 36.
After Ritter signed the budget bill, lawmakers shifted some funding sources. Under SB 222, about $30 million was transferred into capital construction from a fund that had been shared between construction and transportation. The funding shift was designed to make money available for repairs and maintenance at college and university campuses that officials said were in danger of serious deterioration.
The Ritter budget also seeks to provide relief for college students faced with soaring tuitions.
"We have much ground to make up when it comes to higher education, but we can't do it on the backs of young people in the form of sky-high tuition increases," Ritter said. "This budget caps tuition increases for low- and middle-income Coloradans at no more than 5%. It also provides an 8.5%, or $7.4 million, increase in financial aid."