Education Funding

Colo. Plan Would Cut School Aid by $156M, Replace With Edujobs Money

By Todd Engdahl, Education News Colorado — October 25, 2010 3 min read
  • Save to favorites
  • Print

Colorado Gov. Bill Ritter is proposing to cut current state support of schools by $156.3 million, money he said would be replaced by the $159 million in federal Edujobs funding recently awarded to the state.

The governor announced his latest budget balancing plans to reporters Friday afternoon. He’s trying to cover a $262 million shortfall indicated by revenue forecasts last month and also wants to transfer money from a couple of severance tax funds (including one intended to fund higher ed. construction projects) to the general fund and delay some Medicaid payments.

He didn’t propose any higher education cuts, but his plan involves swapping various state and federal funds between K-12 and higher education. The net effect, according to his budget office, is no reduction for either.

The plan also includes $35 million in cost savings that will be used to maintain the state reserve at 2.5 percent.

Administration officials had quietly warned school districts not to use Edujobs cash to hire new staff or rehire people who’d been let go because of earlier state budget cuts. However, federal rules don’t allow the state to dictate specific uses of the money to school districts, although those rules do require district use the money for personnel costs.

The governor said taking state funds from K-12 won’t violate federal rules about “maintenance of effort” in supporting education. “It’s absolutely in our ability to do that.”

Ritter wouldn’t show his hand when asked about his proposed levels of K-12 and higher ed. spending for 2011-12, due to the legislative Joint Budget Committee in a little more than a week. He did say, “Higher education funding will be cut again in 2011-12 in our budget.” He also said the latest K-12 reduction won’t necessarily reduce the base he will propose for next year.

He acknowledged there will be “A significant shortfall, in the hundreds of millions,” and that whoever is elected governor is “going to have to look at cuts.”

The governor took some subtle shots at critics (Republicans) of his budget balancing efforts. “We hear a lot of rhetoric, especially these days,” Ritter said, calling such criticism “completely disingenuous.”

Every time Ritter announces a budget-balancing plan, Republican legislators ritualistically criticize it for not cutting enough, relying too heavily on transfers from various state cash funds and/or for depending on federal stimulus money. Republicans also have criticized the 2010 legislature’s decision to raise revenue by ending some tax exemptions.

Ritter was not at all defensive Friday, saying GOP tactics would have resulted in even higher cuts to education and that use of stimulus money was vital.

Noting that the state’s received $300 million from Washington this year in Edujobs funds and higher-than-standard Medicaid reimbursements, Ritter said, “If we didn’t have that money in 2010-11 those cuts would have come from K-12.” The governor’s budget office estimates that would have meant a loss of 5,000 teaching jobs and additional higher ed cuts totaling $89 million.

Overall, the state has received $1.66 billion in stimulus funds over the last three years for use in the state budget, not counting earmarked money for things such as highway construction.

Ritter did inject a bit of optimism into his meeting with reporters, saying, “The economy is stabilizing and recovering” and that “Colorado remains in better shape than many other states. … I don’t think it’s going to get worse [beyond next year] because the economy is recovering.”

State law requires the governor to propose budget balancing measures if certain levels of revenue decline are forecast. Some of the measures, though, will require legislative approval next year.

From EdNews Colorado

Ritter and the legislature have had to cover $4.5 billion in shortfalls over the last three budget years, including the current 2010-11 year. That’s been done through cuts, some revenue increases, federal aid, shifts from cash funds and other tactics.

Related Tags:

Republished with permission from Education News Colorado. Copyright © 2010 Public Education & Business Coalition. For more information, visit www.ednewscolorado.org.
A version of this article appeared in the November 03, 2010 edition of Education Week

Events

Early Childhood Webinar Selling Into Early Learning: New Survey Data and Strategies for Marketers
Selling into PreK? Get fresh EdWeek Research Center data and strategies to position your products and reach the right early learning buyers.
Artificial Intelligence Webinar AI and 'Techlash' Are on a Collision Course. How Should Schools Respond?
Learn what strategies and tactics schools can develop to encourage smart and responsible AI use, while also enforcing tech guardrails.
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Special Education Webinar
Special Education Disputes & Rising Costs: Protecting Your District
Special education costs and risks are rising. Learn how stronger IEP and Medicaid processes help districts protect funding and compliance.
Content provided by Relay

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Education Funding Opinion An Expert Explains How the Federal Scholarship Tax Credit Will Work
A former Ed. Dept. official predicts the program will generate $3 billion for scholarships in 2027.
•
9 min read
The United States Capitol building as a bookcase filled with red, white, and blue policy books in a Washington DC landscape.
Luca D'Urbino for Education Week
Education Funding Ed. Dept. Meets Research Spending Deadline—But Bigger Funding Challenges Loom
The Institute of Education Sciences finished spending more than $170 million set to expire Sept. 30.
3 min read
Director of the United States Office of Management and Budget Russell Vought walks down a staircase on Capitol Hill in Washington, Thursday, July 16, 2026.
Russell Vought, director of the White House Office of Management and Budget, walks down a staircase on Capitol Hill in Washington on July 16, 2026. The OMB withheld millions of dollars from the U.S. Department of Education's research arm for months, raising the possibility it wouldn't spend the money on education research and data collection in time for its Sept. 30, 2026, expiration.
Allison Robbert/AP
Education Funding Trump's Ed. Dept. Is Still Disrupting Grants—Just More Quietly Than Before
The agency is deploying subtler procedures that result in fewer new grants and less stability for recipients.
11 min read
Senate Minority Leader Chuck Schumer, D-N.Y., center, confers with Sen. Brian Schatz, D-Hawaii, talk following a Senate Democratic Caucus meeting, at the Capitol in Washington, Tuesday, Feb. 3, 2026.
Sen. Brian Schatz, D-Hawaii, (right, speaking with Senate Democratic Leader Chuck Schumer) secured a commitment from Education Secretary Linda McMahon to supply additional funding for Native Hawaiian Education Program grantees when the U.S. Department of Education hadn't launched a competition for new grants. The Trump administration practice of abruptly canceling existing competitive education grants has slowed, but the Education Department is using procedures that result in fewer new grants and less stability for funding recipients.
J. Scott Applewhite/AP
Education Funding Trump, Bucking Congress Yet Again, Cancels $100 Million for Education
A "pocket rescission" hits programs for migratory farmworkers and college-level language instruction.
7 min read
Russell Vought, acting director, Office of Management and Budget, right, and Homeland Security Secretary Markwayne Mullin listen during a cabinet meeting, Friday, July 31, 2026, at Camp David, the presidential retreat, near Thurmont, Md., Friday, July 31, 2026.
Russell Vought, director of the White House Office of Management, listens during a Cabinet meeting on July 31, 2026, at Camp David, the presidential retreat, near Thurmont, Md. The White House has announced an $810 million package of "pocket rescissions," saying it won't spend the congressionally appropriated funds before the end of the 2026 federal fiscal year, which ends Wednesday. The rescissions include nearly $100 million for U.S. Department of Education program.
Jacquelyn Martin/AP