Press Release - Fiscal 2008-09 Budget Signed into Law

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Press Release - Fiscal 2008-09 Budget Signed into Law

OFFICE OF GOV. BILL RITTER, JR.

FOR IMMEDIATE RELEASE

MONDAY, APRIL 28, 2008

CONTACT:

Evan Dreyer, 720.350.8370, evan.dreyer@state.co.us

GOV. RITTER SIGNS FISCAL 2008-09 BUDGET INTO LAW

Gov. Bill Ritter today signed the fiscal year 2008-09 budget into law, praising it for addressing today's critical and immediate needs while also making strategic and forward-looking investments for a better tomorrow.

"A budget is a moral document," Gov. Ritter said. "This budget represents our values and our priorities. It is balanced and it demonstrates steady progress in immediate strategic areas such as -- children's health and welfare, higher education, renewable energy, public safety and economic development. It also represents what we must do to keep Colorado moving forward for the long term.

"This is a budget we should celebrate," Gov. Ritter added. "This is a budget that is smart, fiscally responsible and effective. This is a budget that is good for our communities, our economy and our businesses."

The $18.4 billion operating and capital budget, as detailed in House Bill 1375 (Buescher/Keller), will take effect July 1. Known as the Long Bill, the budget includes a $7.6 billion general fund appropriation and is broken down:

Budget Graph

FY 08-09 Long Bill Highlights

Higher Education -- A General Fund increase of $65.8 million, or 9 percent, for higher education. This includes the largest General Fund increase for higher education ever and an effective tuition-rate cap of 5 percent for the nearly 70 percent of in-state resident undergraduates who are eligible for financial aid.
Crime Reduction and Anti-recidivism Package -- An increase of $5.7 million for 12 initiatives in three departments (Corrections, Public Safety and Human Services). The five-year projected gross savings from this Crime Reduction and Recidivism Package is more than $58 million in total savings/cost avoidance, with investments of approximately $40.8 million over this five-year time period.
Building Blocks to Health Care Reform -- This package expands CHP+ eligibility to 225 percent of the Federal Poverty Level and adds a CHP+ mental-health benefit equivalent to Medicaid (implemented through SB 08-160). It also increases by $4.6 million funds to provide a Medical Home to approximately 100,000 kids in Medicaid and CHP+ so that access to primary care is increased.
Developmental Disabilities -- An increase of $16.4 million total funds (including $7.6 million net General Fund) for additional service, care and community resources.
Transportation -- Nearly $180 million in FY 08-09 for strategic transportation projects throughout the state.
Library Grants -- Restoration of $1.0 million to partially reinstate funding for public Library Grant Programs throughout Colorado.
New Energy Economy -- The Colorado Solar Incentive Program will provide $2 million in rebates to encourage the use of solar energy technology. In addition, the Clean Energy Fund includes $7 million to advance energy efficiency and renewable energy projects statewide.
Child Welfare -- An increase of $445,526 million General Fund for 5.5 full-time equivalent employees to monitor county foster care programs, a five-fold increase in staffing for this critical area.
Employment Training -- A restoration of $4.5 million from the employment support fund to offset decreased federal funds and restore service levels at workforce centers throughout the nine workforce regions throughout Colorado.
Immunizations -- An increase of $654,000 General Fund to operate and expand the Colorado Immunization Information System. CIIS is a confidential, population-based, computerized information system that collects and disseminates critical immunization information for all Coloradans.
Capital Construction -- An increase of $188 million for higher education and state capital construction projects throughout Colorado at local colleges, universities and state buildings.

Gov. Ritter vetoed three Long Bill footnotes. Click here to read his veto message.

FY 08-09 LONG BILL SUMMARY (By Agency)

Agriculture

$62,914 and 1.0 FTE to fund an Animal Field Technician in the State Veterinarian's Office to assist with disease testing and disease control efforts within the agricultural industry, specifically on the western slope.
$140,000 for the purchase of trucks for the Brand Board to administer livestock brands, inspect livestock, investigate reports of lost or stolen livestock, and license livestock facilities.

Corrections

The prison population is expected to grow by 4.3 percent in FY 2008-09. The funding increase associated with this rate of growth is approximately $10.1 million above the FY 2007-08 funded level.
The budget includes $2.0 million above the FY 2007-08 funded level for 25.1 additional parole officer FTE in FY 2008-09 to maintain the officer to parolee ratio of 1 to 68. This increase is based on a projected rate of growth in the parole population of 9.7 percent. The budget also includes $607,520 for 9.2 Re-Entry Specialist FTE to improve the transition process between prison and the community.
The budget includes $54,369 to enable the Parole Board to convert its paper-intensive decision process to electronic documents which can be securely signed and transmitted. This was a GEM initiative, and is anticipated to create both a time and cost savings.
In order to ensure sufficient private prison bed space in Colorado, the FY 2008-09 budget includes $4.8 million for a 4.25 percent provider rate for private prisons.
The Colorado State Penitentiary II will open in 2010, and the FY 2009-10 budget includes $394,673 to fund an activation team to oversee the construction and timely opening of the state's second maximum security correctional institution.

Crime Reduction and Recidivism Package

The budget includes an increase of $5.7 million total funds for the Governor's FY 2008-09 Recidivism Reduction Package.
This package includes 12 different initiatives in three departments (Corrections, Public Safety, and Human Services). The package contains a savings to the Department of Corrections of $3.2 million in the first year.
The five-year projected gross savings from Crime Reduction and Recidivism Package is over $58 million General Fund in total savings/cost avoidance in DOC (with investments of approximately $40.8 million over this five-year time period). This long-term savings does not include the $9.7 million in life-time savings from the S.B. 91-94 increases to the Division of Youth Corrections.

Education

An increase of $151.9 million General Fund for the Department of Education. The State Share of Total Program Funding is $191.8 million (including $146.5 million General Fund) which funds a 5.2 percent General Fund maintenance of effort.
An increase of $6.7 million is added for Categorical Programs, pursuant to the Colorado Constitution.
An increase of $1.8 million General Fund to close the achievement gap in elementary and secondary education.
A restoration of $1.0 million to partially reinstate funding for public Library Grant Programs throughout Colorado.
An increase of $433,000 General Fund to hire five content specialists to support school districts.

Governor

The Colorado Solar Incentive Program in the Governor's Energy Office will provide rebates to encourage the use of solar energy technology. The $2.0 million of State funds will be matched with rebates from local utilities. This incentive will be available to the 45 percent of Colorado citizens who do not currently have rebates available.
Statewide Cyber Security Implementation requests $349,353 General Fund to acquire components and software to mitigate the critical network security risks through centrally managed firewalls, intrusion detection systems, and antivirus protection.
The Office of Homeland Security was established in the Office of the Governor. This Office organization has been adopted to provide more focus on state-wide planning, reduce duplicate and fragmented initiatives, and provide adequate staffing and management of the $19.8 million in homeland security grants. This Office transfers 3.0 FTE from the Department of Local Affairs and creates 7.0 FTE for current contracted positions.
The Clean Energy Fund includes $7.0 million to advance energy efficiency and renewable energy projects throughout the state. These funds will be used to attract renewable energy industry investment, assist researchers in transferring technology to the marketplace, and provide incentives for the use of energy efficient and renewable energy products.

Health Care Policy and Financing

Building Blocks to Health Care Reform

An increase of $11.6 million total funds ($3.3 million General Fund) to expand CHP+ eligibility to 225% of the Federal Poverty Level and to an a CHP+ mental health benefit that is equivalent to Medicaid (implemented and funded through SB 08-160).
An increase of $28.1 million total funds ($13.2 million General Fund) for provider rate increases that will increase reimbursement for Medicaid services so that the financial viability of providers can be sustained allowing children to receive continued access to health care.
An increase of $4.6 million total funds ($2.0 million General Fund) to provide a Medical Home to approximately 100,000 kids in Medicaid and CHP+ so that access to primary care is increased.
An increase of $5.5 million total funds ($2.6 million General Fund) to begin the process of centralized eligibility determinations that will streamline the Medicaid and CHP+ application process.
An increase of $1.3 million total funds ($0 General Fund) to serve nearly 700 additional eligible but not enrolled children in CHP+.

Children's Basic Health Plan

An increase of $26.9 million for base increases to CHP+ caseload and service costs for an additional 11,155 children (an increase of 19.2 percent) and 137 pregnant women (an increase of 8.8 percent). This includes average per capita costs of $1,626 for children's medical services, $161 for children's dental services, and $11,158 for women's prenatal and delivery services.
An increase of $1.4 million to double the current CHP+ outreach budget as part of the commitment to providing health care to a greater percentage of eligible children.
- An increase of $9.6 million total funds to provide health care for the estimated 5,358 eligible but not enrolled children that will be identified with the outreach funding.

Medicaid

The total funding increase to the Medical Services Premiums in the Medicaid program is $118.0 million ($53.4 million General Fund) to provide health care to more than 381,000 (0.8% decrease from FY 2007-08) low-income or disabled clients.

Higher Education

An increase of $65.8 million General Fund for Higher Education, an increase of 8.8 percent. This includes:
- An increase of $10.1 million General Fund in additional financial aid, or 10.4 percent. This includes an increase in need based aid, work study aid and special purpose grants including pre-collegiate program scholarships.
- Tuition rate caps for resident undergraduates of 9.5% for research institutions, 7.5% for four year institutions, and 5.5% for community colleges. Needy students (i.e. Level 1, 2, & 3) will not see more than a 5% rate increase.
- Enrollment increases of 1,885 or 1.5 percent of College Opportunity Fund stipend eligible students. Increase of $90 for the COF stipend from FY 2007-08 up to $2,760 per year.
- $118.5 million state funded capital construction for higher education. $107.7 million for new or ongoing projects and $10.8 million for controlled maintenance, which accounted for approximately 65.6% of total state capital construction funding in the Long Bill (FY 2008-09).

Human Services

An overall increase to the Department of Human Services of $7.7 million General Fund for a 1.5 percent provider rate increase.

Developmental Disabilities

An increase of $3.0 million total funds (including $1.4 million net General Fund) for the Wheat Ridge Regional Center for 68.7 additional FTE to convert the Regional Center to an Institutional Care Facility for the Mentally Retarded.
An increase of $16.1 million total funds (including $7.3 million net General Fund) for 650 additional community resources (Comprehensive and Supported Living Services), which represents a 537 percent increase in resource allocation over the increase provided in FY 2007-08. (In FY 2007-08, a total of 102 Comprehensive and Supported Living Services resources were added).

Mental Health

An increase of $3.0 million General Fund for community mental health services to serve around 960 indigent people, more than double the General Fund increase added in FY 2007-08.
An increase of $1,361,824 General Fund and 11.6 FTE to open the new Forensics Institute in Pueblo.
An increase of $986,386 General Fund for nurse compression pay at the mental health institutes to help with nurse retention and recruitment.

Child Welfare

An increase of $445,526 million General Fund, and 5.5 FTE to monitor county foster care programs, a five-fold increase in staffing for this critical area.
An increase of $13.6 million total funds (including $7.1 million General Fund/net General Fund) for Child Welfare caseload increases.

Judicial

Probation Services will receive 48.8 FTE and $2.8 million for increasing the oversight provided by probation officers and reduce the staffing ratios in regular probation.
Court-appointed counsel hourly rates increased from $60 to $65 per hour. This resulted in a $3.3 million increase for Judicial, Alternate Defense Counsel, and Office of the Child's Representative.
The Judicial Branch will receive an increase of $7.1 million and 105.6 FTE for judges and staff related to the second year of HB 07-1054.

Labor and Employment

A restoration of 9.0 State FTE, 65.5 County FTE and $2.5 million from the employment support fund to offset decreased Wagner-Peyser and Workforce Investment Act federal funds and restore service levels at One Stop workforce centers throughout the nine workforce regions throughout Colorado.
The Division of Oil and Public Safety received an appropriation of $440,000 to replace octane test engines used to conduct quality tests of petroleum products sold.

Law

Includes funding for an initiative to pay bar registration fees for the Department's attorneys as well as some continuing legal education expenses.
An increase of $422,637 reappropriated funds and 4.5 FTE to provide for increased legal services to other departments.

Legislature

A reduction of $250,000 reappropriated funds due to FY 2008-09 being the odd-year in an every-other-year cost of living analysis done by Legislative Council staff for each school district.

Local Affairs

An increase of $262,711 reappropriated funds and 5.0 FTE to address grant administration deficiencies identified by the State Auditor's Office. These additional FTE will help ensure that grants made from the severance tax and mineral lease revenues to local communities are properly tracked and appropriately spent.
An increase of approximately $1,000,000 General Fund for affordable housing funding within the Division of Housing.
Reflects the transfer of federal homeland security grants and 3.0 FTE from the Division of Emergency Management to the Office of Homeland Security in the Governor's Office.

Military and Veterans Affairs

An increase of $124,354 for County Veteran Service Officers, more than doubling the State support for this program.

Natural Resources

An increase of $394,292 in federal funds and 6.0 FTE to coordinate a estimated $30 million increase in federal funding for inactive mine reclamation throughout Colorado. Funds will come from the reauthorization of the federal Abandoned Mine Land program.
An increase of $1,723,665 cash funds and 21.0 FTE within the Oil and Gas Conservation Commission for oil and gas oversight. The new staff will help regulate oil and gas development with a focus on permitting, inspections, and enforcement.
An increase of $69,035 cash funds and 1.0 FTE in the Colorado Geological Survey for geothermal energy research throughout the State.
An increase of $85,645 cash funds and 1.5 FTE to the Colorado Water Conservation Board to coordinate statewide drought planning activities and process Water Efficiency Grant program applications.

Personnel and Administration

Includes funding for 5.5 additional FTE in the Colorado State Employee Assistance Program (C-SEAP). This will slightly more than double existing resources for this counseling and management program and will benefit both employees and the State alike.

Public Health and Environment

An increase of $654,000 General Fund to operate and expand the Colorado Immunization Information System. CIIS is a confidential, population-based, computerized information system that collects and disseminates critical immunization information for all Coloradans.
A restoration of $1 million for the Tony Grampsas Youth Services Program. The Program was created to provide State support for local programs to reduce youth crime, violence, child abuse, and other high-risk behaviors. General Fund support for the program was eliminated during the fiscal crisis.
An increase of $292,000 General Fund for Tuberculosis Control and Treatment to address increased tuberculosis activity and increased cost to manage tuberculosis.
Restoration of $58,240 General Fund and 3.0 FTE to sustain the Office of Health Disparities. The Office of Health Disparities coordinates minority health initiatives internally and externally. Grant funding that had offset General Fund support in the past is expiring.

Public Safety

The budget includes an increase of $95,272 and 0.9 FTE for the Safe2Tell Program. This increase will provide a state-funded Executive Director for the Safe2Tell program, which has been previously grant funded. Since September of 2004, Safe2Tell has received and responded to 451 tips regarding threats to community safety, including but not limited to incidents of school violence, gun possession, and bullying.
An increase of $255,208 and 2.8 FTE for Colorado Bureau of Investigation (CBI) Lab Analysts. This will provide additional staff to assist with the demand for criminal fingerprint and tire-tread submission processing and analysis.
An increase of $672,093 and 9.0 FTE for the Colorado State Patrol (CSP). This request for will provide an additional 6.0 state troopers in the field and an additional 3.0 communications officers at the Denver command center, so that the CSP can effectively respond to calls for service.
The budget includes $243,190 cash funds exempt funding and 3.5 FTE to the Department of Public Safety to improve its portion of the public schools inspection program (this program is jointly administered by the Departments of Public Safety and Labor and Employment).
The Joint Budget Committee added an additional $400,000 for an increased number of therapeutic community beds in Southern Colorado.

Regulatory Agencies

An increase of $72,760 cash funds and 0.9 FTE for the Board of Medical Examiners Complaint Management to expedite high priority and complex complaints received by the Board.
A reduction of $30,000 and 0.7 FTE to reflect economies of scale from the passage of several 2007 bills related to the regulation of mortgage brokers.

Revenue

An increase of $180,234 General Fund for the travel expenses of senior audit staff for auditing out-of-state companies that do business in Colorado.
An additional $179,314 General Fund is also included to expand the internal audit team from one to six staff members.
An increase of $4.0 million cash funds for the creation of a lottery distribution and inventory management system to assist in efficient distribution of Scratch tickets. This is projected to increase sales by approximately $54.3 million and proceeds by approximately $9.0 million and increase staff efficiency by automatically distributing scratch tickets rather than relying on hand delivery.
An increase of $3.0 million cash funds to grow the current marketing budget from $8.6 million to $11.6 million. The Lottery has experienced a 6.5% marketing increase since 1988-89 while the costs of advertising have increased over 80%. This is projected to increase sales by approximately $24.2 million and proceeds by approximately $4.3 million.

State

An increase of $749,846 cash funds and 2.1 FTE to fund Department activities related to the State's information security act.
An increase of $900,000 cash funds and 9.0 FTE to help administer the voting systems certification program.
Appropriates $520,000 cash funds to replace the Department's outdated accounting system to better process the thousands of online applications received daily.

Transportation

A decrease of $4.2 million in Gaming Impacts cash funds for highway construction and maintenance on gaming related roads.
An increase of $451,000 reappropriated funds for multiple agency fleet vehicle maintenance.

Treasury

An increase of $30.4 million cash funds from anticipated transfers from the Unclaimed Property Trust Fund to CoverColorado.
An increase of $7.6 million General Fund for payments to local governments to offset the local property tax revenues foregone due to the senior citizen and disabled property tax exemption.

Capital Construction

An increase of $188 million for capital construction projects throughout the State, not including transportation. This assumes a FY 08-09 statutory transfer of $65.9 million for capital construction. The Long Bill-funded projects follow, along with the amounts taken from the Capital Construction Fund (dollars do not include federal or cash funds):

University of Colorado -- Denver: various projects at the Anschutz Medical Campus (Certificates of Participation project) for $13,142,688.
Department of Revenue Colorado Integrated Tax Architecture (CITA) for $7,817,037. This project will replace the current tax system with a single, integrated system modified to ensure that the department can continue to collect and process tax revenue.
Controlled Maintenance, Level 1 (32 projects) for $21,735,893. This funding will address the most critical needs in State buildings such as life safety.
University of Colorado - Colorado Springs: Science and Engineering Buildings, Phase I of III for $7,000,000. This project will help accommodate the University's engineering and science departments and several other departments by adding a building of 155,000 square feet.
Colorado State University's Diagnostic Medicine Center for $19,156,307. This three phase project constructs a 90,000 square foot Center next to the Veterinary Teaching Hospital. The new center will provide animal diagnostic and processing labs, research labs, and office and support space.
University of Colorado -- Boulder: Visual Arts Complex in the center of the campus for $7,070,000. The complex will house the Department of Fine Arts and the University Art Museum and will add open classrooms, labs, studios, and other education facilities.
Fort Lewis College Berndt Hall Reconstruction for $15,699,453. This funding will help to demolish the current building and replace it with 29,000 square feet of new space for the biology and agriculture departments. The current space is unusable and the new building will remedy several mechanical and structural problems.
The Department of Personnel and Administration's Digital Trunked Radio System for $7,945,000. Counties on the Western Slope will be able to obtain needed software and system upgrades. This system uses standard based digital technology to improve coordination of first responders at the local, state, and federal level.
Colorado State University's Clark Building Revitalization for $2,000,000. This project will correct code issues for a heavily used classroom and office building that requires major maintenance to extend its life and usability.
University of Colorado -- Boulder: Ekeley Sciences Middle Wing Renovation for $11,559,536. This renovation of over 21,000 square feet of space will address mechanical and ventilation systems that limit the departments of Chemistry and Biochemistry ability to provide state-of-the-art laboratory instruction to over 3,000 students per semester.
University of Colorado -- Boulder: Ketchum Arts and Sciences Building for $8,435,946. This structurally sound facility, which is used 6 days a week throughout the year, requires system repair and upgrades for code compliance.
The Colorado School of Mines Hall of Justice Demolition and Related Classroom Improvements for $3,516,697. This funding will help demolish the Hall of Justice which is a safety hazard with asbestos and code compliance issues. The project also renovates existing space on campus in various buildings to make the buildings safer and more visitor-friendly.
The Department of Public Safety's new Alamosa Troop Office, Regional Communications Center for $1,217,719. The project will remedy the existing facility's inefficient and crowded work environment, lack of storage, and security deficiencies. The funding also relocates and updates the existing radio infrastructure which is maintained by the Department of Personnel and Administration.
The Colorado Historical Society's Montrose Ute Indian Museum for $2,098,598. The museum interprets the lifeways, leaders, and events of the Ute Indians during the 19th Century. Because visitation has grown, the museum is congested and has space deficiencies that will be corrected.
The Department of Human Services: McCandless Phase IV Renovations, Colorado State Veterans Nursing Home at Florence for $2,163,000. This home requires a roof replacement, new elevator, and kitchen renovations to serve clients in a safe manner. This funding also allows the State to keep federal funds that have also been used for this home.
The Pueblo Community College Academic Building and Learning Center for $2,971,482. This area currently being used for storage will be renovated to provide a one-stop learning center with access to academic support services for a large number of students. There has been a 52% increase in the demand for services over the last five years. The center will accommodate more students, offer walk-in tutoring, increase the testing hours, and add access to computers.
Mesa State College Saunders Fieldhouse Renovation and Expansion (phase II of III) for $18,400,687. The funding will address the fieldhouse's academic, recreation, and mixed-use space that is undersized, programmatically inadequate, and under-equipped to meet the needs of the four programs it serves. The project will provide classrooms, labs, offices, and a new fitness center.
The Department of Military and Veterans Affairs Grand Junction Readiness Center Construction for $3,994,432. The Grand Junction armory construction will accommodate 131 soldiers assigned to the Colorado National Guard who respond to state emergencies and conduct search and rescue operations. This State funding is also a match to allow the receipt of critical federal funds.
The Department of Human Services F Cottage Air Conditioning, Colorado Mental Health Institute at Fort Logan for $1,806,035. The funding will correct the extreme heat conditions which have exacerbated existing patient conditions.
The Department of Human Services Kipling Village Remodel for $400,340. Five group residential homes will be renovated to better address the highest needs clients in the developmental disabilities system. The project will improve paint, carpet, kitchens, and bathrooms.
The Department of Corrections Colorado State Penitentiary II, Equipment and Furnishings for $2,000,000. This is the final stage for adding a 948 high custody facility to the Corrections system that was authorized in HB 03-1256.
University of Northern Colorado Butler Hancock Interior Renovation for $3,000,000. The Athletic Department and School of Sports and Exercise will resolve code compliance issues, life safety issues, and space limitations with this appropriation. The project includes 34 new staff and faculty office, 4 new seminar rooms, 30 computer lab stations, a library, new locker rooms, and more.
Colorado State University -- Pueblo Academic Resources Center Remodel for $2,797,436. This building is currently functionally obsolete and the funding will address deferred maintenance, add a multi-story entry way, and enclose a walkway to make the building the central information facility on campus.
The Colorado School of Mines Brown Hall Addition for $2,000,000. This four-story addition will address life safety issues where the Engineering Division is located and help relieve overcrowded conditions.
The Department of Human Services Suicide Risk Mitigation for $3,284,215. These renovations will improve the physical environment of inpatient residential units to reduce the risk of patient suicide at both State-operated mental health institutions.
Colorado Northwestern Community College Academic Building for $1,990,056. This funding will accomplish the planning for a new academic building and career and technical center on the Craig Campus. Current classroom space is so inadequate that students cannot select classes and needed times or access certain programs.
The Department of Corrections Fort Lyon Acquisition and Renovation for $10,449,694. This project expands capacity by 250 beds, bringing the total to 750 Level III security beds. This expansion is critical for managing offenders with serious mental illness.
Controlled Maintenance, Level 2 for seven projects for $4,351,905. These projects address disruption issues at various state facilities and higher education institutions.

Other General Government Items

An increase of approximately $21.5 million total funds (including $12.4 million General Fund) for employee health, life, and dental benefits. A portion of this funding also allowed for the State increase its health premium contribution from 85% of market in FY 2007-08 to 90% in FY 2008-09.
An increase of $76.8 million total funds (including $44.6 million General Fund) for salary survey and performance-based pay for State employees. The average market-based salary increase averaged 3.28% and performance-based pay was calculated at 1.4% of base salaries.
A net reduction to the State of $1.8 million for the net replacement of 900 vehicles (including approximately 200 hybrids and 450 flex-fuel vehicles) and 71 new vehicles.