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Education, Medicaid Cut In Budget Proposal

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Education, Medicaid Cut In Budget Proposal

DENVER (CBS4/AP) ― Education, worker compensation and Medicaid will be hit hard by Gov. Bill Ritter's budget proposal for 2010-2011. Ritter announced his plan to close a $1 billion budget shortfall for next year Friday afternoon.

He is proposing a $260 million, or 4.6 percent cut in K-12 education spending, Medicaid would be cut by $28 million, and state workers would have to pick up the state's share of their pension contribution for one year. That would save $20.1 million.

"We're asking everyone to share in this sacrifice. From schools to businesses to state workers. Everyone needs to do their part," said Ritter. "This is a fair and balanced budget. In this new economic reality, the budget continues the cost-cutting and streamlining thats been underway for over a year. It does so in a way that minimizes pain, protects public safety, maintains essential services and preserves programs that promote job-creation and economic growth. "

State colleges and universities would receive $56 million less next year but could increase tuition up to 9 percent.

The governor is also calling for a six percent increase in transportation spending.

Senate Majority Leader and Republican candidate for governor, Josh Penry, criticized the plan. He said additional taxes and fees will hurt Colorado families and businesses.

 

(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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