Blogs:

Recently, legislators were told by Henry Sobanet, state budget chief that schools will this year receive an additional $22 million due to a brighter revenue outlook. This fund will be used for increasing enrollments and doing away with the need for $89 million cut this financial year. This cut was previously proposed in the original budget for 2012-13 by Colorado Gov. John Hickenlooper.

Hickenlooper talked to reporters and said that as the economy is showing positive signs of improvement, we can talk about the budget today. He said that first and foremost, the proposed K-12 cuts were rolled back with the help f the additional revenue.

He pointed out that even though there will be a steady fund flow of $5.2 billion, there will be a cut due to the rising enrollment rate in the state. Per pupil average funding in the state will reduce by $70. This is way better than the original plan of the governor that had average per pupil cut at $179. Under the school finance system in the state, there is a wide variation in actual funding per-student.

This forecast was greeted as good news by many who thought these were welcome developments. Joint Budget Committee chairman Rep. Cheri Gerou welcomed the good news after the presentation

According to R-Poncha Spring’s Rep. Tom Massey, the forecast will spur them to push towards reducing K-12 cuts. Colorado Association of School Boards deputy executive director Jane Urschel said that willingness of the governor to eliminate $89 million is great news.

Colorado Education Association president Beverly Ingle said that this good news comes at a time when our schools and students so desperately need to be cheered. It was encouraging to listen to what Sobanet had to tell legislators at the hearing. He said that as compared to previous
September, the current year’s state revenues are projected to be higher with an extra $231 million.

Sobanet, who is also the Office of State Planning and Budgeting director, said that this is indeed a welcome change. There is definitely stabilization in the economy. There is also skepticism on how US economic prospects could be clouded by economic instability in Europe.

As compared to what was previously expected, forecasts show that a larger amount of money will be available for spending in 2012-13 for lawmakers. A few steps will be recommended to the administration in this regard, said Sobanet.

Current year budget should be allocated an additional $22 million to cover enhanced enrollment costs. To supplement school spending, state education fund that is chronically underfunded should be transferred with an additional $110 million.

Total amount of funds including local and state money used to fund school operations to a level of $5.2 billion as opposed to the proposed $89 million by Hickenlooper. With higher revenues, a $30 million cut from the total of $100 million financial aid program can be avoided said Sobanet. The governor’s plan however includes another $30 million cut in direct support of universities and colleges. The final say on the 2012-13 budget however rests with the legislature.