In a late-night executive order, Colorado Gov. Jared Polis cut about $229 million from the state budget, saying the coronavirus pandemic is causing revenue losses that can’t keep up with expenditures.
The order was issued Thursday night.
The Office of State Planning and Budgeting anticipates that for the fiscal year ending June 30, more than half of the general fund reserve would be needed if appropriated spending continued.
Cuts are not being made broadly, but in a targeted way that meant to cause “the least possible impact” to programs and services, the budget office said.
Some of the cuts come from areas seeing reduced demand due to social distancing, such as travel and programs. Administrative and salary reductions have been achieved through filing only critical positions.
No furloughs or layoffs for state employees are planned for this fiscal year. The Colorado General Assembly will decide the 2020-21 budget when it reconvenes May 18.
The biggest cut bar far, $183 million, comes from the Department of Health Care Policy & Financing, for Medicaid services.
Rebecca Powell is a content coach at the Coloradoan. If you know of an impactful story you believe needs to be reported, send it to RebeccaPowell@coloradoan.com. We can’t do the important work of keeping our community informed without you. Support the Coloradoan with a digital subscription.
Read or Share this story: https://www.coloradoan.com/story/news/2020/05/01/coronavirus-economy-colorado-gov-jared-polis-cuts-state-budget/3065994001/