Colorado Budget Looking at Over $3 Billion Shortfall Due to Pandemic
A few months ago it looked like Colorado would have over $800 million more to spend in the upcoming budget; now, things have obviously changed.
Though we've seen some good news, the bad news keeps coming when it comes to the COVID-19 pandemic.
The Denver Post reports that state legislators are looking at a $3.3 billion shortfall when putting together Colorado's next budget.
Just like many businesses and families across the state, cuts will have to be made. According to the Denver Post, the state's overall budget will see a 10% reduction, and the state's general fund will see a 25% reduction.
The general fund handles core services for Colorado, including education and transportation, but nearly all departments will see their budgets effected.
The Denver Post reports that on top of that shortfall, there's another problem: The state's unemployment insurance trust fund. With 16% of Coloradans filing for unemployment insurance, that fund (which has had $1 billion in it over the last two years) is projected to be emptied (insolvent) for 2020-2021 and $1 billion in debt for 2021-2022.
From the Denver Post article, Joint Budget Committee Chair, Rep. Daneya Esgar:
Colorado is facing what may be the most dire budget situation in our state’s history, but I know that we will join together and meet this challenge
Get more on Colorado's budget challenges from the Denver Post HERE.