Thursday, September 3, 2009

Ritter Reverses Course on LEAF Raid

Gov. Bill Ritter said Wednesday that he would not, after all, seek to transfer more than $1 million from the fund to pay law enforcement officers overtime in order to enforce DUI laws on holiday weekends this year.

The governor had said on Tuesday that he would seek to shift the money to drug and alcohol treatment programs. The money in the so-called "LEAF" (for Law Enforcement Assistance Fund) was frozen in an executive order issued by Ritter on Saturday.

Ritter's spokesperson, Evan Dreyer, said the governor has not ruled out asking the legislature to shift LEAF money to drug and alcohol treatment programs in future years.

LEAF was created by the General Assembly in 1983 and is funded by an automatic fine assessed on every person convicted of DUI in the state.

Wednesday, September 2, 2009

O'Brien Announces $80 Million in Grants to Cities, Counties, Schools

The Ritter administration announced Wednesday that more than 500 cities, counties and school districts across Colorado will receive about $80 million in grants funded by severance taxes generated from oil and gas extraction.

The purpose of the grants, which were calculated under a more generous allocation formula created by a 2008 law, is to "offset impacts from energy development, strengthen local economies and improve the livability of Colorado communities," according to a press release from Gov. Bill Ritter's office.

“These funds come at a critical time and will help local agencies and schools maintain quality services,” Lt. Gov. Barbara O’Brien said. “These direct distribution awards will allow local officials to decide how best to invest these funds and make the biggest difference in their communities.”

The amount of the grants is a state record. Prior to the enactment into law of SB 08-218 and HB 08-1083, grants from energy severance taxes and the federal government's mineral lease fund were based on the number of employees an energy company had in a particular community. The 2008 statutes require consideration of the number of drilling permits, amount of production, employee residences, population in the community, and the amount of highway user miles in a community.

The total of the grants last year was about $24 million.

Colorado's severance tax on oil and gas drilling accounted for $44.5 million of this year's grant fund, while the federal mineral lease fund is the source of the remaining $35.9 million.

The largest recipients of grant money from the state's severance tax were Mesa county (about $4.7 million), Garfield county (about $4.6 million), Weld county (about $2.7 million) and the city of Grand Junction (about $2.1 million).

Grants to school districts, and additional grant money for municipalities and counties, come from revenues generated by the federal government's mineral lease fund.

About $2.8 million is being provided to school districts from the federal revenues, with the largest recipients being Garfield School District RE-2 (about $454,000), Roaring Fork School District RE-1 (about $377,000) and Mesa County Valley School District 51 (about $306,000).

A complete list of recipients, and the amounts they received, can be found here.

Tuesday, August 25, 2009

Ritter Will Cut 331 Jobs to Balance Budget

Gov. Bill Ritter has increased the number of state jobs he will cut in order to balance the budget.

The governor's office disclosed the higher number when it released documents relating to its financial plan Monday.

The Ritter administration had announced last week that the job losses would total 266.

Not all of the job reductions involve layoffs, since the governor's office is counting vacant positions that would be left unfilled.

The budget cuts announced by Ritter in order to close a budget deficit in excess of $200 million this fiscal year include:

• $25 million less for state prisons, including about $19 million saved by speeding up parole for eligible inmates and shortening parole supervision periods;

• a 1.5 percent reduction in the reimbursements paid to health care providers, which will save Colorado $8.6 million;

• elimination of 59 beds for mental health patients at a facility in Fort Logan and closure of a 32-bed facility for developmentally disabled patients in Grand Junction, which would save about $2.3 million; and

• reduction of $4.5 million from a program that gives $200 monthly stipends to disabled people awaiting federal Social Security benefits.

The governor's office also announced Monday that it would delay an effort to cut more than $475,000 from a program that allows some state employees to use publicly-owned vehicles as a means of transportation to and from work.

Suthers Obtains Guilty Pleas in Medicaid Fraud Cases

Attorney general John Suthers announced today that his office has obtained guilty pleas in two Medicaid fraud cases.

Cortney Ileane Miller, 55, pleaded guilty Aug. 14 to forgery. She was sentenced to five years of probation, with conditions to include 100 hours of useful public service and restitution of more than $23,000.

The state alleged that Miller, who worked in an Adams County wheelchair supply company owned in part by her husband, acquired an invoice from a supplier for an expensive power wheelchair and then modified the invoice and included it in support of several bills that she submitted to the Colorado Medicaid program for other clients. Most of the bills were for much less expensive equipment, but Miller claimed the high price supported by the false invoice, plus profit.

In an unrelated case, Michelle Riley, 41, a former co-worker of Miller, pleaded guilty July 24 to theft, a class-four felony, and forgery, a class-five felony. Her convictions arise from charges that she submitted several false Medicaid bills to the state. Riley received five years probation and was ordered to reimburse teh state more than $63,000.

The state alleged that Riley, who is the owner of a Denver-based wheelchair supply company, submitted bills to Medicaid for three wheelchairs which were never supplied to the recipients, and over-billed three other wheelchairs and one power scooter. Riley also allegedly falsified wheelchair repair records to collect for repairs that did not happen.

Riley and Miller had worked together in the past, but their crimes appeared unrelated.

Thursday, August 20, 2009

Sen. Johnston Named to Education Commission

Newly-appointed Sen. Michael Johnston, D-Denver, has been named to a prestigious bipartisan panel charged with recommending improvements to the country's most significant public education law.

Johnston, the former principal at Thornton's Mapleton Expeditionary School of the Arts, will join the Aspen Institute's Commission on No Child Left Behind.

The commission will study how to improve low-performing schools, teacher effectiveness, standards and assessments, and graduation rates.

The panel meets for the first time Sept. 2 at Howard University in Washington, DC.

Other members of the commission include former Health and Human Services secretary Tommy Thompson and former Georgia Gov. Roy Barnes.

Ground Broken for New Colorado History Museum

The Centennial state will soon have a new history museum.

About a hundred people gathered at 12th Avenue and Broadway in Denver Wednesday for the groundbreaking ceremony for the new Colorado History Museum.

The new museum replaces the facility located adjacent to the state's Judicial Building west of the Capitol.

Construction of the $111 million replacement facility is being financed by certificates of participation. Build America Bonds issued by the federal government will reimburse Colorado for 35 percent of the interest paid by the state on the project.

The result of that federal assistance, made possible by the American Recovery and Reinvestment Act enacted into law in February, will be that investors in the certificates of participation receive full return on their investment while the state's taxpayers pay an effective interest rate of only 4.24 percent.

State treasurer Cary Kennedy says that the federal help will save Colorado $77 million on the project.

The new museum, which will be about 190,000 square feet in size, is scheduled to open in 2011.

The new judicial complex, which is expected to cost about $250 million, is to open in 2013.

Wednesday, August 19, 2009

Ritter Announces More Budget Cuts for FY 2010

Gov. Bill Ritter said Tuesday he will cut $320 million in state spending this fiscal year by releasing some prisoners and eliminating almost 270 government jobs, among other actions, and that he will seek to raise fees for background checks on those who seek to buy guns.

The announcement came as the governor works to close an expected $318 million shortfall this fiscal year.

The current budget gap follows earlier expected deficits of $1.4 billion, which were eliminated by other spending reductions and transfers from cash funds.

Ritter also plans to attack the current shortfall by relying on federal dollars provided by the American Recovery and Reinvestment Act signed by President Barack Obama in February. $52.5 million will be provided this year by Washington to pay for Medicaid programs. Ritter is also counting on $80.9 million to replace money Colorado cut from its higher education institutions.

So-called "stimulus" money from the federal government will be reduced next year and then be eliminated in fiscal year 2012.

The governor will also rely on additional transfers from cash funds.

Next year's shortfall could be larger than the one Ritter is currently dealing with under the authority granted him by state law to prevent budget deficits. Some estimates indicate that the state government could be facing an obligation to pay at least $350 million more for prisons, health care and social programs.

The spending reductions from corrections will come, according to Ritter, by releasing some prisoners six months early and by terminating post-release supervision of some convicts on parole.

Ritter also wants to eliminate 59 beds at a Fort Logan mental health facility and close a 32-bed nursing home in Grand Junction.

The plan also eliminates $200 monthly stipends given people who have applied for Social Security Supplemental benefits from the federal government but have not yet started receiving them.

The spending cuts amount to about 3.5 percent of the state's general fund.

The suggested fee increases include a new $10.50 charge for background checks assessed on those who attempt to purchase a firearm and an increase in the current $17.95 fee assessed on new government employees for a criminal background check.

The General Assembly would have to approve the fee increases for them to take effect.

The governor has the authority to execute the spending cuts without legislative approval. Most of them will take effect Sept. 1.