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Your New JBC Chair

By on November 15, 2012 in Home, JBC

 

On November 8, 2012, just two days after the general election, I was elected by my colleagues in the Senate to serve another two years on the legislature’s Joint Budget Committee.  The JBC began it’s annual budget process the next week and the first order of business was electing a new chair.  This position rotates each year between the House and Senate, and in the year following a general election a senator chairs the committee.  In the year preceding the election the House of Representatives gets their turn.

I am happy to report that I was unanimously elected Chair of the Joint Budget Committee on November 14, 2012.  Rep. Claire Levy of Boulder is the new Vice-Chair, and next year at this time we’ll switch titles.  It is an incredible honor to be entrusted with the responsibility to lead our budget process.  The role of JBC Chair has been called the most powerful position in the legislature, and while I consider this assertion to be somewhat debatable, it isn’t that far from the truth.  My good friend Rep. Mark Ferrandino may better resemble that remark… Congratulations Mr. Speaker!

The JBC is already hard at work, and I’m looking forward to the tasks at hand.  Five of the six JBC members from the previous legislature remain on the committee, so our working relationships are strong.  Rep. Crisanta Duran of Denver is the only new member this year and she seems eager to learn and contribute.  And of course, with an improving economy we won’t be facing as many painful decisions as was the case the past two years.  That is, unless Congress drives us over the fiscal cliff… but that’s another blog post.

For those of you following me on Twitter (find me @PatSteadman), I’ll probably be tweeting a little less during JBC hearings.  I’ve never been that prolific at tweeting, but last year I would often report significant decisions or the subject matter of various hearings.  Now that I’m chairing the committee I doubt I’ll be able to reliably tweet quite as much.  But you can always keep up with us by following Sen. Kent Lambert (find him @KentLambert), as he’s been very good at tweeting links to our JBC staff documents and where we are on our agenda.  You’ll get a different spin on the action, but you’ll still know what we’re up to. 

Throughout November and December the JBC receives briefings from staff on the departmental budget requests, and then holds hearing with state agency officials to discuss their funding and programs.  In January our focus shifts to mid-year “supplemental” appropriations that adjust spending in the current fiscal year and keep our budget in balance.  Then we spend most of February and March ”figure setting” to determine the amount of funding for each line item in the Long Bill.  If we’re on schedule, I’ll introduce the Long Bill in the Senate on Monday, March 25, 2013.  I’m going to be pretty busy for the next five months or so… wish us luck!

 

 

Governor Hickenlooper signs the FY 2012-13 Long Bill into law.

Fiscal Year 2012-13 Budget: Balanced & Popular

By on May 21, 2012 in JBC, Legislative Update

This year’s state budget enjoys the notoriety of being one of the most popular in decades, that is if you consider votes in favor of the Long Bill as signs of popularity.  The Joint Budget Committee did a remarkable job this year.  Not only did we work well as a team and bridge partisan and ideological divides, but we also did some heavy lifting.  We balanced the budget, we avoided partisan gridlock, and we sponsored a remarkable array of legislation that solved problems and responded to budgetary and programmatic needs of state government.

The Long Bill is required to be passed each year by the Colorado Constitution.  HB 12-1335 contains the appropriation of state funds from taxes and fees, and it notes the allocation of federal funds received by the state for various programs.  All told, the state budget for FY 2012-13 tops $19 billion, with approximately $7.5 billion of that amount coming from the general fund, which consists primarily of income tax and state sales tax revenues.  It’s called the Long Bill because it is hundreds of pages long, filled with line items and fund sources for programs in every department of state government.  It takes about five months to prepare the Long Bill, a process that begins in November and culminates in March and April.

Governor Hickenlooper signs the FY 2012-13 Long Bill into law.
Members of the Joint Budget Committee and legislative leadership watch as Governor Hickenlooper signs the FY 2012-13 Long Bill into law.

Increasing tax revenues are the reason for the popularity of this year’s Long Bill.  As the economy continues to show signs of slow but steady recovery, projections of tax revenue collections have been revised upwards for the past two quarters.  With revenues returning, budget decisions became easier.  We avoided a partisan battle over the senior homestead property tax exemption just as we avoided many other unpleasant choices because we didn’t have to avail ourselves of extreme budget balancing maneuvers.  For this reason, the Long Bill passed the House of Representatives by a vote of 64 to 1, and in the Senate the vote was 30 to 5.  The final tally came in a little lower because as the bill passes each chamber it gets amended and is then referred to a conference committee (the JBC) to iron out the differences.  The final conference report saw a few of the bill’s previous supporters peeled off as three House members voted against it.  Governor Hickenlooper signed the bill into law on Monday, May 7, 2012.

HB 1335 was popular because it avoided many of the budget balancing moves of recent years.  The senior homestead exemption was restored and cuts to K-12 per pupil funding ceased, but several other difficult maneuvers were avoided.  We did not declare a “fiscal emergency” under the terms of the Amendment 35 tobacco tax provisions in the state constitution.  This allowed tobacco tax revenues to again flow to the intended recipients in health and prevention programs.  We did not transfer severance tax revenues to the general fund, leaving these monies available for grants to local communities and water infrastructure projects.  We did not reduce the level of statutorily required reserves and are instead well-positioned for future increases in the amount held in reserve.
Lots of little bright spots also appeared in the FY 2012-13 budget.  Many of these I personally championed, and all them were carefully balanced by the JBC.  Here’s a list of highlights (in no particular order):
      • K-12 school funding increased by $57 million, the first increase in three years.  This pays for growth in enrollment, allowing per pupil revenues to be held constant rather than decline.
      • State employees no longer are paying a portion of the state’s employer contribution to their PERA pension accounts as the 2.5% “PERA Swap” was allowed to sunset.
      • State employees were not required to dig deeper into their own pockets to pay increases in health care premiums – the first time in 3 years that rising health premiums didn’t result in a net reduction in take-home pay for state workers.
      • State employees paid biweekly will be happier in June 2013 because we’ve taken the first step toward reversing the so-called payday shift enacted in 2003.  This budget balancing move pushed the June 2003 payday to July 1, and out of that fiscal year.  Ever since then the June payday has been July 1.  For salaried employees paid monthly at the end of the month, this wasn’t a big deal.  But for temporary and hourly workers paid biweekly this shift caused a major delay and cash flow problems.  Next June they’ll thank us!
      • A $45,000 cut to the Court Appointed Special Advocates (“CASA“) program was reversed.
      • Tourism promotion funding was increased by $3.7 million above the formula amount from limited gaming tax revenues, a move necessitated by declines in gaming tax revenues.  Two other programs funded through gaming revenues, the Council on the Arts and Local Community Gaming Impact Grants, were also funded above the formula amount.
      • Services for people with developmental disabilities were funded at an increased level, allowing a few more people to be taken off of waiting lists.
      • Higher education funding was cut by $5.8 million.  No cut was made to financial aid or work study programs.  In the governor’s original budget request filed in November, the proposed total cut had been $60 million.
      • The economic development commission received a $5 million increase for incentives for luring companies to Colorado, expanding businesses and job creation.  The existing budget had been just over $1 million, so this is a respectable increase.
      • Film production incentives were increased by $3 million.  The existing budget had been less than $1 million, so this also makes a big difference.
      • Funding for the Colorado Energy Office was restored to $3 million.  This helps expand Colorado’s renewable energy industries and create jobs in energy efficiency and weatherization.
      • Veterans will have greater access to mental health services and programs to assist with homelessness prevention and job training.  Specialty courts that assist veterans in the criminal justice system also received expanded funding.
      • The grant program to assist in the development of affordable housing had all budget cuts from previous years restored and was then increased by $200,000 by floor amendments to the Long Bill.  These dollars are highly leveraged and create lots of construction jobs.
      • Another state prison was closed, the second in two years.  Known as CSP II, this facility consisted entirely of solitary confinement “administrative segregation” cells.  A lawsuit and a recent study are leading us away from keeping so many prisoners, especially those with mental illness, in this type facility.  Existing staff at CSP II will be transferred to other facilities in the Canon City/Pueblo area and no layoffs are projected.
      • A three-year commitment was made to finally repair and make functional the Colorado Benefits Management System (“CBMS“), with a significant appropriation of approximately $12 million in FY 2012-13.  County social service agencies across the state have been demanding a solution for this troubled computer system, and everyone seems to think HB 1339 will get us there.
      • County social service agencies also rejoiced in the plan to mitigate reductions in federal funding for the Temporary Assistance for Needy Families (“TANF“) program.  JBC staff gets much of the credit for finding creative solutions, but I was a vocal proponent of not creating unfunded mandates for county programs that serve the needy.
      • Community-based drug treatment programs for offenders in the criminal justice system will receive additional funds.  Sentencing reforms from 2010 were supposed to generate savings in the corrections budget that were to be reinvested in addiction treatment.  I made sure this happened with supplemental increases to FY 2011-12, additional money in the Long Bill for FY 2012-13 and a scheduled increase in statute for FY 2013-14 in SB 104/HB 1310.
      • Restoration of the senior homestead property tax exemption required $98.5 million in new funding to reimburse local governments for reduced property tax collections.
      • Low-income seniors receiving Old Age Pension from the state will receive a cost of living increase, and dental care services for this population will be restored.  HB 1326 increases funding for these purposes by $9.7 million.  Seniors did well in this budget.
There are probably some other highlights that I’ve already forgotten, but as you can see, the FY 2012-13 budget is made up of not only thousands of line items, but also a thousand points of light, a thousand rays of hope.  It gets better.  Hopefully it keeps getting better…!

Best & Brightest of 2012: Highlights from the Session

By on May 21, 2012 in Home, JBC, Legislative Update

The Second Regular Session of the 68th General Assembly will mostly be remembered for how badly it ended.  The debacle on the House floor on Tuesday, May 8, 2012 was one of the most disgusting spectacles I’ve witnessed in my many years at the Capitol.  The three-day special session that followed was anticlimactic at best, modestly passing three bills that had perished on May 8.  But dwelling on the final weeks of the 2012 session overlooks what otherwise was a productive endeavor.

The work of the Joint Budget Committee in 2012 tells the story of the session.  This bipartisan committee of three from the House and three from the Senate, three Republicans and three Democrats, three men and three women illustrated how it is supposed to work.  The JBC initiated 59 bills in 2012, including the FY 2012-13 budget package and supplemental appropriation bills.  The work product of the JBC was impressive as we addressed a number of technical issues and set about solving some serious challenges.

The FY 2012-13 budget was one of the most popular in decades, and eyebrows were raised when the Long Bill, HB 1335, passed the House on a vote of 64 to 1.  Indeed, conservative groups howled so much about Republicans voting for government spending that several members switched their votes when the final conference committee report was adopted.  Improving revenue collections helped make the budget so popular, as we turned a corner and stopped making cuts to most departments.  School funding actually increased, as enrollment growth was funded for the first time in three years.  Per pupil revenues to school districts remained flat, but funding for growth in student enrollment was cheered.

Perhaps the most popular aspect of the FY 2012-13 budget was what it didn’t do: it didn’t cut public schools, and it avoided a lot of other unpleasant budgetary maneuvers that had been necessary in prior years.  We did not declare a “fiscal emergency” to take advantage of tobacco tax revenues, allowing those dollars to reach their intended health and prevention programs.  We did not transfer severance tax revenue to the general fund, allowing those dollars to remain with local government and infrastructure grants.  We did not lower the amount of funds held in reserve.  We did not have to continue the suspension of the senior homestead property tax exemption.  And on top of all of this, we actually increased spending for seniors and people with developmental disabilities.

Two JBC-sponsored bills that deserve special mention are SB 145 and SB 168, both of which I sponsored.  SB 145 capped the amount of revenue from state trust lands used for school finance in FY 2011-12, thereby allowing a projected $18.5 million to be deposited in the permanent fund.  SB 168 modified the timing of transfers and increased reserve requirements in SB 09-228.  Both of these bills deal with complex subject matter that most legislators would never tackle, but with a JBC that sponsored 59 successful bills, our committee took on the heavy lifting.  You can read more about these bills in my previous post on bills I passed this year.

Aside from the budget, several other significant accomplishments in 2012 must be noted:

HB 1238 reformed the Colorado Basic Literacy Act and placed renewed emphasis on early literacy in grades K through 3.  The Read to Achieve grant program was redirected to early learning, and $16 million annually was allocated to interventions for students with reading deficiencies in the early grades.  By ensuring that students can read before they encounter important subject matter we ease their path to academic achievement.  Sponsored by Reps. Massey & Hamner and Sens. Johnston & Spence

HB 1271 makes major reforms to “direct file” procedures where criminal charges are filed against a juvenile in adult court.  The bill makes charges against youth 14 and 15 years old start in juvenile court, and allows the prosecutor to request transfer to adult court in more serious cases. For those 16 and 17 years old, a case directly filed in adult court requires the judge to hold a hearing and determine the proper court for the case.  Juvenile crime is a serious problem, but adult felony convictions and young lives also deserve serious consideration.  This bipartisan bill was the most significant criminal justice reform measure passed in 2012.  Sponsored by Reps. Nikkel & McCann and Sens. Giron & Neville

HB 1286 revamps Colorado’s film production incentive program.  It updates the scope of the program and offers a loan guarantee for productions in Colorado.  An additional $3 million is invested in this economic development program that not only creates jobs in creative industries but also promotes Colorado as a tourist destination, thereby stimulating another important sector of our economy.  Sponsored by Reps. Massey & Ferrandino and Sens. Newell & White

HB 1070 and SB 146 both addressed government ethics.  HB 1070 made existing laws requiring disclosure by elected officials align with “Amendment 41,” the voter-initiated ethics law.  SB 146 made clear that gifts, benefits and employment opportunities should not be accepted by a public official from someone seeking any consideration or action by that official.  Although this sounds like something everyone should know is unethical, recent headlines prove otherwise.  I co-sponsored both these bills.  Sponsored by Rep. Peniston and Sen. Hodge

HB 1281 and HB 1315 are also bills frequently cited as important accomplishments in 2012.  HB 1281 concerns methods for paying providers of health care services to Medicaid clients, and HB 1315 restructures the Colorado Energy Office.  Both are bills that originated in the House that I sponsored in the Senate, and they’re detailed in my previous post about bills I successfully sponsored this year.

HB 1241 calls for an examination of the state’s enterprise zones.  Used as incentives for businesses to locate and expand in certain parts of our state, this system has become bloated and inefficient.  Because so much territory is included within enterprise zones it has proven politically difficult to reform.  The task force created by this bill will spend the next year evaluating the successes and shortcomings of the enterprise zone program and recommend legislative changes.  Sponsored by Rep. Ferrandino and Sen. Heath

SB 133 is going to put an end to landfill disposal of consumer electronic devices.  Colorado recyclers are increasing their capacity to recover precious metals, rare earths and toxic materials that are found in nearly every household electronic device.  SB 133 phases-in a ban on landfill disposal, helping the environment and helping to create jobs that make our state more sustainable.  Sponsored by Sen. Schwartz and Rep. Coram

READ MORE ABOUT IT:

Editorial: Highs & Lows Under the Colorado Capitol Dome

Article: Hickenlooper Signs Budget, Praises Bipartisan Support

Article:  Sine Die, for real

Colorado Senate Budget Debate

By on May 5, 2012 in JBC, Press

Colorado Senate’s budget debate includes circumcisions, ATMs at strip clubs

Posted:   04/18/2012 07:16:20 PM

By Tim Hoover, The Denver Post
 
The Colorado Senate gave initial approval Wednesday night to a $19 billion state budget after a debate that touched on funding infant circumcisions for the poor and whether state welfare ATM cards can be used at strip clubs.

The debate was largely conflict-free, compared with prior years. The House passed the bill last week, 64-1.

The bipartisan, bicameral goodwill comes as a result of an improved revenue picture, which allowed lawmakers to avoid a fight on whether to again suspend a $98.5 million property-tax break for seniors. With the higher revenues, everyone agreed there was money to fund the tax break this year.

The budget keeps per-pupil funding for K-12 education at the current level and keeps funding for higher education almost equal with the current fiscal year, which ends in June.

“There’s a lot of good in this budget,” said Sen. Pat Steadman, D-Denver, a member of the Joint Budget Committee, which crafted the budget.

JBC Updates

By on January 2, 2012 in JBC

As we have JBC meetings in 2012 I will be updating this page with what goes on in those meetings. Happy New Year!