JBC makes tough choices to balance state budget This past week was the most difficult I've ever experienced as a legislator. The six member Joint Budget Committee, including myself, started reconstructing the state budget to address a predicted $3.5 billion drop in state revenue due to the Coronavirus. This represents a 12% reduction in our overall total state budget and 36% of our General Fund.
JBC practicing social distancing during hearings
On Monday, we tackled cuts to the Legislative Branch, the departments of Labor and Employment,Military and Veterans Affairs, Public Health and Environment, the Treasury, and PERA (Public Employees Retirement Association). The General Fund portion of the first three departments are relatively small, so the cuts are minor netting approximately $30 million. We deferred some of the big ticket items, such as the senior property tax exemption and PERA, until we know how much of a gap we are facing.
Tuesday, we addressed cuts to statewide compensation and community provider rates. Instead of the 3% increase we planned back in February, we decided to hold steady and provide no increases this year. We also made cuts to the Office of the Governor, the departments of State, Corrections, Public Safety, Personnel, Revenue, and Law. These reductions generated just over $160 million, with the majority, $72.3 million, from eliminating the 3% salary increase proposed for state employees. We also deferred a number of items related to the Tourism Office.
The remainder of the cuts were to HCPF, where we discussed over $600 million in reductions. We rejected a 25% reduction to services for people with intellectual and developmental disabilities, and we decided to keep the CH+P program, which provides medical services to low-income children. While we did accept many of the recommended cuts, we believe federal stimulus funds will help offset some reductions to Medicaid.
JBC balancing decision items this week
Thursday was the most difficult day for me personally, as we discussed cuts to Education and Higher education. The analyst's goal was to identify $73 million in reductions because that was the amount needed to keep the budget stabilization factor flat and to not decrease program funding for schools. However, by Thursday the goal amount was already outdated and we needed to find an additional $74 million.
We chopped away at various grant programs and pilot programs and deferred decisions on dropping kindergarten funding or increasing the BS Factor until after the forecast. We made $105 million in cuts to higher ed, but again deferred further action until after the forecast.
On Friday, we knocked out a fair number of reductions to the Departments of Natural Resources, Agriculture, Local Affairs, Regulatory Agencies, the Judicial Department and Independent Agencies. In prior recessions, the JBC decided to tap the state's severance tax funds, but this time there is no money available due to U.S. crude oil futures plummeting to the lowest price in history. We made just over $38 million in reductions, mostly from the judicial department.
Finally, we met on Saturday to discuss our last department, Human Services, where we reduced over $90 million in cuts to the Division of Youth Services, Child Welfare, and Behavioral Health, to name a few. This department is largely funded through the General Fund, and while there are a fair number of corresponding federal match programs, any cuts to this department has a deep affect on services. And cuts to foster care and mental health agencies is not really a viable option for us.
As painful as these cuts were this week, we are still far short of what will be needed to balance the state budget. If you start to do the math... we haven't quite reached a billion dollars and we're gonna need another $2 or $3 billion. But, before we make any more big decisions on the remaining items, we want to learn more about the state of the economy. We are slated to hear from the state's economists this coming Tuesday where they will help us figure out how much deeper we will need to go.
Originally we were slated to have the budget ready to go for introduction on Monday, May 18. Our budget work was built around that deadline. However, while we were listening to the reduction ideas for Human Services, I learned via Twitter that the House doesn't intend to return until May 26. After we wrapped up at 5 pm I confirmed with Senate leadership that we have no alternative but to delay. Nevertheless, despite the difficulty of the task that lies before us, I am confident that the JBC will have the budget ready.
Heroes among us in SD19 This week, we are following up on a story from last week where local duo Lisa Smith and her partner Eli Feret, who are making hand sanitizer for the community, ran out of printed labels for the bottles. Enter local business and hometown hero Ed Rothschild and AlphaGraphics to the rescue!
AlphaGraphics printer creating labels
for bottles of hand sanitizer
Ed and his team at AlphaGraphics printed up thousands of labels for free and donated them to Lisa and Eli for their bottles of hand sanitizer. We are grateful to Ed for his donation as it helps Lisa and her folks with their production costs so that they can, in turn, donate the hand sanitizer to the community. What a great partnership!
Labels for the CLEAN 1 Initiative to manufacture and distribute sanitation spray and gels
Rachel Zenzinger
Rachel Zenzinger won election to the Colorado State Senate, representing District 19, in November 2016. She also served as Senator for SD19 in 2014. Sen. Zenzinger is a member of the Joint Budget Committee, the Chair of the Senate Appropriations Committee, and Vice Chair of the Statutory Revision Committee.
Virtual town hall meeting on Saturday
Last week of working from home
Please join Reps. Kraft-Tharp, Titone and myself for our regularly scheduled monthly town hall meeting on Saturday, May 16 from 10:30 - 11:30 am. Same as last month, we will be conducting the town hall virtually. We will be joined by guests from the Jefferson County School Board to discuss the budgeting process in light of the recession.
To join, click on the link via your computer or smartphone:
Along with other counties in the Denver Metro region, Jefferson County Public Health (JCPH) let the Stay-at-Home order expire at midnight on May 8. This means that as of today, critical businesses can remain open, and many non-critical businesses can begin to open with some restrictions according to the state's Safer-at-Home order.
Over the past week, JCPH--in collaboration with CDPHE, county and city leadership, the Jefferson County Business and Workforce Center and local Chambers of Commerce--has worked to develop public health guidance for businesses, including requirements for all businesses as well as specific guidance for a variety of industry sectors. The complete guidance and resource hub for businesses is available at www.jeffco.us/safer-at-home.
Individuals are strongly advised to continue staying at home to the greatest extent possible, only interacting with household contacts and only leaving for essential activities. People at greater risk of severe illness from COVID-19, such as people 65 and older, should continue to stay at home unless leaving is absolutely necessary.
If you have questions or need resources that are not covered by the links above, send me an email and we will track down what you need.
Donations to
Rachel For Colorado
I am pleased to announce that I am the Democratic
2020 nominee for election to the Colorado Senate District 19 seat in November. I am honored to receive the nomination and it would be honor to have your support once more. Would you consider making a contribution to my campaign?
