Tax increase in the wings in Ritter’s budget

Chris Barge, Rocky Mountain News

Friday, November 9, 2007

Gov. Bill Ritter said Thursday he may ask voters to approve a tax increase next year to pay for either health care, transportation or higher education.

But he emphasized that while all three priorities need extra funding, only one of them should wind up on the ballot. Colorado voters are too fiscally conservative to approve more than one tax increase at a time, he said.

"That is certainly one of the most important conversations we'll have in the Capitol complex in the coming months," Ritter told the legislature's Joint Budget Committee. "I don't think we can go for all three. That would be unfair to voters and would demonstrate a lack of leadership on my part and on the part of the legislature."

Ritter appeared before the committee to present his first proposed budget, which was received warmly, signaling it has a good chance of being adopted mostly intact.

Ritter told the committee that his "moral document" would boost funding for higher education and children's health care while investing in programs that would drive down the number of people who return to prison.

He defended his recent executive order giving unions a stronger voice in state government, saying it won't cost the state anything. Ultimately, Ritter said, he and the legislature retain the power to set the budget and employee salaries and benefits.

Rep. Steve Johnson, R-Fort Collins, told Ritter the state already gives its employees one of the most generous compensation packages in the country.

Todd Saliman, Ritter's budget director, said Ritter refrained from increasing the state's share of health, life and dental insurance for state workers from 85 percent to 100 percent of market levels. That way, he could reserve more money for achievement pay for all state employees.

Democrats and Republicans on the committee suggested possible minor budget revisions, including finding more money to reduce the waiting list for the developmentally disabled and funding prison construction.

Ritter said despite proposing to grow the budget $900 million next year — from $17.1 billion to $18 billion — ultimately it comes down to making hard choices about how to divide a limited amount of money.

His plan, which would take effect July 1, calls for a $7.5 billion general fund appropriation, a 6 percent increase from this year's $7.1 billion and the maximum spending hike allowed by the state Constitution.

"There are legends around the JBC and the governor's office," said JBC chairman Rep. Bernie Buescher, D-Grand Junction. "Long ago, it's said that the chair of the JBC took the governor's budget and dropped it in the trash can."

"Thank you for not doing that," Ritter said.