1. Facing our Fiscal Future Mark Neuman-Lee Policy Analyst Colorado Fiscal Policy Institute

2. www.cclponline.org Budget Squeeze Colorado doesn’t have the resources to fund the services we expect to receive. Stagnant revenue combined with increasing demand for services is squeezing all services – public education, health care, human services.

3. www.cclponline.org Stagnant Revenue, Rising Demand Between 2001 and 2010, General Fund revenue fell slightly, but Colorado had about: – Over 700,00 more Coloradans – 100,000 new K-12 pupils – 40,000 new students in higher education – 5,800 more prisoners – 225,000 more residents on Medicaid

4. www.cclponline.org However, resources do not meet need

5. www.cclponline.org Muddling through To balance the budget, the legislature has Taken money from cash funds Used Federal stimulus funds Cut services However, Cash fund balances are running low Stimulus money is over We will rely more on services cuts – K-12, Higher Education, Health Care, Human Services

6. www.cclponline.org FY11-12 General Fund Spending Data from FY11-12 Appropriation Report

7. www.cclponline.org Total K-12 Spending Data from JBC Appropriations Report

8. www.cclponline.org K-12 Per pupil spending Data from JBC Appropriation Reports

9. www.cclponline.org Colorado K-12 spending falling vs. national average FY07-08 Rankings (most recent) Per pupil 39 th ($1,700 below national average Total spending per $1000 of income – 48th

10. www.cclponline.org Funding burden shifting to state State share 2011-12 - 64% State share 1987-1988 – 43%

11. www.cclponline.org Higher Education Cuts Not protected constitutionally FY11-12 Proposal – State will invest less than FY97-98 Higher Education cuts cushioned by backfill from ARRA, but federal stimulus dollars ended last year 25,000 more students but $187 million less in state funding FY 2011 compared to FY 2009. $1553 less per student

12. www.cclponline.org Cutting State Support for Higher Education Graph from JBC Appropriation Report FY11-12

13. www.cclponline.org Falling spending per college student Data from JBC, analysis by COFPI

14. www.cclponline.org Financial Aid is helping less From JBC Appropriation Report FY10-11

15. We have low taxes State Combined State and Local Taxes Total State Taxes AZ3040 KS1827 CO4449 NE1433 OK WY UT 41 2 21 20 3 24 All rankings per $1000 of income, from FY 08-09

16. www.cclponline.org Taxes Have Fallen Colorado TaxFY 1998-99FY 2008-09Change Individual Income$23.69$20.74-12.50% Sales/Use$14.73$10.89-24.20% Corporate Income$2.54$1.55-39.00% Gas$4.35$2.90-33.30% Liquor$0.22$0.17-22.70% Tobacco$0.57$1.0278.90% Legislative Council August 2010 Per $1000 of Income

17. Starting the conversation about revenue

18. www.cclponline.org Initiative 25 Senator Rollie Heath’s proposal – Raises $536 million which will go to preschool, K- 12, and public higher education Average about $550 for each Colorado student – Raises state tax rates back to 1999 levels Income tax 4.63% to 5% Sales tax 2.9% to 3% – Temporary, expires after five years

19. www.cclponline.org Less than a Dollar a Day A taxpayer with a median income of $55,700 in Colorado will pay about $150 more each year, primarily in income tax. www.brightcolorado.com

20. What kind of Colorado do we want? Mark Neuman-Lee Policy Analyst Colorado Fiscal Policy Institute mneumanlee@cclponline.org