More Cuts

These are the cuts Gov. Ritter is planning to make in order to rebalance the FY 2009-10 budget to the latest revenue forecast. There are a few notes after the spreadsheet that are important to understanding the HCPF numbers.

Department	FY 2009-10 GF (Long Bill)	Gov. Cuts (Balance to June Forecast)	Cuts as a Percent	Layoffs (Annualized)
Agriculture	$6,860,955	-$694,765	-10.1%	0.0
Corrections	$677,839,527	-$25,809,462	-3.8%	-29.3
Education	$3,239,416,000	-$33,022	0.0%	0.0
Governor and Energy Office	$14,283,355	-$1,105,650	-7.7%	-9.0
Health Care Policy & Financing	$1,587,903,164	-$457,136,848	-28.8%	-0.5
Higher Education	$660,575,732	-$80,935,058	-12.3%	0.0
Human Services	$670,638,807	-$19,913,782	-3.0%	-186.2
Judicial	$336,357,516	-$10,090,725	-3.0%	0.0
Labor and Employment	$0	$0	0.0%	0.0
Law	$10,008,042	-$300,241	-3.0%	0.0
Legislature	$35,162,475	-$1,054,874	-3.0%	0.0
Local Affairs	$11,889,613	-$778,013	-6.5%	0.0
Military and Veterans Affairs	$5,862,332	-$422,754	-7.2%	0.0
Natural Resources	$29,680,331	-$2,729,440	-9.2%	-6.3
Personnel and Administration	$6,291,404	-$271,294	-4.3%	-8.0
Public Health and Environment	$28,232,074	-$1,520,308	-5.4%	0.0
Public Safety	$83,212,852	-$2,159,794	-2.6%	-6.6
Regulatory Agencies	$1,666,729	-$189,549	-11.4%	-1.0
Revenue	$75,719,920	-$1,803,535	-2.4%	-19.7
State	$0	$0	0.0%	0.0
Transportation	$0	$0	0.0%	0.0
Treasury	$1,933,721	-$28,900	-1.5%	0.0
Total:	$7,483,534,549	-$606,978,014	-8.1%	-266.6

That $457 million cut for Health Care Policy and Financing isn't as big as it seems. Part of the federal ARRA program is giving states a higher match for the money we spend on Medicaid.

We put that money into hte budget as a GF cut. It is a cut in GF, but it's replaced with the federal money. (We could put the higher Medicaid match in the budget as revenue, but that would mask the fact that we'll have to replace it with GF when ARRA ends).

The ARRA part of the HCPF cut is $345.8 million. That means the actual cut to Medicaid is $111.3 million or 7%.

Steps to Balancing the Budget (2009-10)

The June revenue forecast from Leg Council showed that we would have to cut more spending to balance the FY2009-10 budget. In response, Governor Ritter started the process of reducing spending. Here are the general steps:

• June 22 - direct agencies to cut travel and some operational expenses
• June 25 - direct state agencies to develop plans to cut 10% from their budgets (due to OSPB by Julu 20)
  
• July 7 - OSPB sent specific cost reduction goals to agencies
• July 20 - OSPB reviews agency cost cutting plans
• Aug 18 - present cuts to JBC
• Aug 24 - deliver actual supplementals and other information to JBC
• Sept 1 - most cuts take effect