Recent statement by the Colorado Speaker of the House K.C. Becker and a presentation developed by the Colorado Governor’s Office of State Planning and Budget paint a stark picture for the outlook of state finances. They suggest that between $2B to $3.2 billion will have to be cut from the currently outlined FY 21 budget.
The state reserve currently stands at roughly $1B. While the state will be receiving direct federal stimulus, it remains unclear exactly how much discretion legislators will have over where the funds go, given many are earmarked for specific programs or can only be spent on new expenses related to the crisis and not for backfilling revenue declines. The next state forecast is expected my May 12th.
JBC staff estimates total funding to be received by Colorado from the CARES Act is around $487.6 million. Expected funding from the CARES Act for Colorado is outlined below:
- $120 million for K-12 Education
- $140.8 million for Higher Education (50% of this funding is required to be spent on direct grants to students.
- $41.4 million for the Child Care and Development Block Grant
- $11 million for Older American Act programs and services for the elderly
- $10.8 million for the Low-Income Energy Assistance Program
- $23 million for the Community Development Block Grant
- $24.8 million in Emergency Solutions Grants to address COVID-19 among those experiencing homelessness
- $30 million for Economic Development Assistance Grants
- $8.1 million for Community Services Block Grants
- $127,000 for Housing Opportunities for Persons with AIDS
- $6.7 million for Election Security Grants
- Funding for CDOT, Department of Public Safety, CDPHE, Department of Military and Veterans Affairs, HCPF, and for Section 8 housing vouchers is still unknown and JBC staff continues to work with state executive departments. JBC staff states funding received for transit systems would be disbursed through existing formulas including the Urbanized Area Formula Grant, Formula Grants for Rural Areas, State and Good Repair Formula Grants, and Growing and High Density States Formula Grants.
JBC Budget Documents can be found here.
OSPB Slides can be found here. https://www.colorado.gov/governor/economics