Colorado may foretell Calif. budget woes
Two fiscally conservative governors, miles away from each other, are forecasting budgetary disaster unless voters pass new state spending rules.
This situation might seem common enough, but this time there is a catch: Their goals are opposite.
While Gov. Arnold Schwarzenegger pushes California voters to put a cap on yearly state spending, his Colorado counterpart Gov. Bill Owens is working to suspend similar controls established in his home state years ago.
Though Colorado’s longtime budget restraint has been lauded by fiscal conservatives nationwide, budget capping has left state services in a slump.
Critics of the Golden State measure – Proposition 76 on the Nov. 8 special election ballot – say California could be the next Colorado.
“There are a number of indicators where Colorado has fallen significantly over time, in large part because of the way (the spending cap) has strangled state government,” said David Bradley, a policy analyst for the Center on Budget Policy and Priorities, a left-leaning think tank that has criticized Colorado’s spending policies.
Opponents of Proposition 76 also say the measure’s passage could take a toll on California universities.
In Colorado, higher-education funding – on par with the national average before the state’s budget cap was implemented – has lagged considerably, causing tuition to increase 21 percent since 1992.
Spending cuts spell poor quality, higher tuition and subpar facility maintenance, Bradley said.
Some say speculating which state services will be cut is premature.
“Anyone who says it’s going to cut this or that is just guessing,” said USC business and law Professor John Matsusaka.
Other state services that could be cut include K-12 spending, social services and road maintenance.
In Colorado, 50 road projects are on hold, teacher pay is well below the national average, and the state has a poor record of providing health insurance for low-income residents.
However, some fiscal conservatives say these problems stem from poor allocation, not a lack of funds.
“Enforcing budgetary restraints makes people make tough decisions, and making tough decisions is called governing,” said Christopher Butler, director of communications at Americans for Tax Reform.
Butler said a balanced state budget, the proposition’s principal priority, would serve as an “economic engine” that would revitalize the state.
If the proposition passes, the state would be have to limit spending, based on average revenue over the course of the most recent three years.
Unlike Colorado, where taxpayers get a refund check, California surpluses would go into a rainy-day fund.

