Health care takes a hit in Ritter’s budget cuts
By Paula Noonan 
| August 20, 2009 | 9:01 AM
Gov. Bill Ritter announced this week an additional $320 million in savings and cuts to balance Colorado’s budget.
“The plan I’m presenting reflects the same values, the same culture of cost-cutting and the same smart investing we’ve been doing since January 2007,” Gov. Ritter said. “I approached this thoughtfully, surgically and compassionately.”
The state has already trimmed $1.5 billion since 2008, and it expects further cuts after a Sept. 20 budget review.
It was depressing news for people in the mental health field, as 59 beds at Fort Logan Mental Health Institute will be closed, along with a 32-bed nursing facility in Grand Junction. Nearly 270 state employees will lose their jobs, and other employees will see their pay frozen for another year.
Parolees in the state corrections system will catch a break. Those on the back end of their parole time who have followed the rules will be released. Some prisoners will be eligible for early parole and will receive the “front-loaded” services that reduce recidivism, according to Ritter.
Corrections will lose 34 employees and will not open any new prisons. These changes will produce nearly $20 million in savings.
Health care providers and health services will take a $115 million hit as the state reduces provider rates by 1.5 percent and makes other cuts. The governor’s office has worked with providers to ensure adequate coverage for individuals on Medicare and Medicaid.
K-12 and higher education will hold their own because of Amendment 23 and the federal stimulus act.
Overall, the state may lose as many as 84,600 jobs this year, with another 8,600 expected in 2010. This rate exceeds the 74,000 jobs lost in 2002-2003, and this is the reason Colorado’s revenues are so low.
The grim budget situation should begin to turn around in 2011, when the state expects to gain 22,000 jobs and the overall economic situation will improve. While home values have declined over four years, prices have leveled off and are stabilizing. Income growth will hit a new low at 0.3 percent as compared to 5.9 percent in previous years.
The governor’s office will trim nine positions as he does his part to balance the budget.
Paula Noonan is with Colorado Capitol Watch
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bill ritter, budget cuts, colorado, economy, health care
