Rags to Riches

It's rare, especially these days, that a Negative Supplemental turns positive. But it just happened.

"Negative Supplemental" isn't just the name of this blog, it's the JBC's oxymoronic term for a change to the state budget that takes money away from a department.

When we passed the Long Bill last year (2008), we noted $445.5 million in Federal Funds for the Dept. of Transportation's (CDOT) Construction, Maintenance and Operations line. (The total amount in the line, including $814 million from the HUTF, was $1.3 billion).

This year, CDOT sent over a negative supplemental to cut $88.6 million from the line. It wanted to make clear that the federal government was stiffing us for that much money. The federal highway fund was going broke and U.S. DOT was taking back earlier promises of money.

The department was just making a point. The legislature doesn't have any control how CDOT spends the money, so the line in the budget is just for information purposes. Changing it would, therefore, be just for informational purposes.

And the information got interesting. Between the time CDOT submitted the supplemental and when we got to it, Congress changed from being tight-fisted to downright profligate. The feds sent CDOT a surprise gift of just over $400 million.

Our staff changed the negative number to a plus $315 million. (the new money minus the earlier cut).

Food Stamp Penalty

The JBC just approved a $2.8 million penalty payment to the U.S. Dept. of Agriculture. It's hurts, but it's also a relief.

When the state suddenly switched to a new, and unfinished, computer system in 2004, a lot of people lost benefits to which they were entitled. It led to outrage, a lawsuit, and an overcorrection.

The computer system was the infamous CBMS -- the Colorado Benefits Management System. Years in the making, years in the fixing, and years in the mopping up after all of the trouble.

Back in ought-4, Stung by the criticism, the state erred on the side of generosity and, when in doubt, handed out food stamps. That led to people getting benefits who weren't entitled to them.

When the U.S. Dept. of Agriculture later audited us, it stuck to the rules and imposed sanctions. To date, we've handed over nearly $10.5 million in repayments for overpayments and interest. The JBC today OKed another $2.8 million in repayments. It should mark the end of our penance to the USDA.