Speaker of the House Frank McNulty, R-Highlands Ranch, today offered a new approach to the state budget. The new strategy will include a responsible budgeting process that will account for the margin of error made in previous economic forecasts. State revenues were sizably lower than predicted the past few years by the nonpartisan Office of Legislative Council.

“Making the decision now to spend less will allow us to craft a responsible state budget in a more thoughtful and elegant way,” Speaker McNulty said. “This type of proper planning is not just necessary, it also allows the Governor and the Legislature to avoid the harmful last minute cuts experienced over the last several years because of a lack of planning.”

McNulty’s plan will reduce the budget target by 2.75%, or approximately $195 million from December’s economic projections, with the goal of preventing irresponsible budgeting and last minute budget cuts. The Joint Budget Committee will also address the merits of each spending program throughout the legislative session to build a state budget.

“The time has come to set our budget around a responsible estimate that more accurately reflects the realities of our economy,” McNulty said. “We are going to meet the challenge of balancing our budget together, in collaboration with the Senate and the Governor, over the coming 100 days.”

Note: Please see the following remarks delivered by Speaker McNulty at a press conference earlier this afternoon

Two weeks ago, Governor Hickenlooper invited all Coloradans to partner with him to move Colorado's economy forward; to focus on job creation; and to get our fiscal house in order. The Governor's invitation was one made in a spirit of good faith and bipartisanship.

We accept the Governor's invitation to work together to help Colorado's economy get back on track and bring honesty and responsibility to our state budget process.

The first step in this process begins tomorrow morning when the House Finance Committee considers the annual revenue resolution which will give direction and guidance to our Joint Budget Committee as they develop the FY 2011-2012 budget.

It's imperative that we take this first step in the process with all prudence and with our eyes wide open knowing that sacrifice today will make for a better tomorrow.

For the last several years, this figure has been set by adopting the revenue projection made by the nonpartisan Office of Legislative Council. And while we all know that these projections are complicated and difficult, by any measure, the fact is that they are overly optimistic during times of recession. The Legislature has budgeted to a figure that has been consistently, and sometimes dramatically, higher than the revenues that have subsequently materialized.

It's time to be honest about this problem within our budgeting process. For several years now, the Legislature has planned and budgeted based on overly optimistic tax revenue projections, only to force the Governor to go back and make rushed cuts to the budget when state coffers take in less money than anticipated.

The time has come to set our budget around a responsible estimate that more accurately reflects the realities of our economy. Doing so is not only prudent, it is necessary in order to craft a budget that allows us, as the Governor said in his State of the State address, to "engage in very direct, very pragmatic conversations about what we can and cannot afford to do as a state government." In my opening day speech, I commented that the bill for kicking the can down the road has come due. Today is the first step to paying that bill.

I have proposed to my colleagues a budget figure that, based on recent history, I believe more accurately reflects what we as a state can expect to see in tax revenues. Instead of simply adopting the figure based on the last projection, I believe we must look at the margin of error in recent years and responsibly reduce that amount from our figure.

In 2008-2009, actual revenues were 17% lower than projected the previous December; in 2009-2010, actual revenues were 11% lower than projected the previous December. Even this year, we find ourselves in a similar predicament because of overspending from the year before.

Making the decision now to spend less will allow us to craft a responsible state budget in a more thoughtful and elegant way. This type of proper planning is not just necessary, but it also allows the Governor and the Legislature to avoid the harmful last minute cuts experienced over the last several years because of a lack of planning.

If we make a commitment now and have the courage to spend less today, Colorado will be better positioned to avoid these harmful last minute cuts. Any working family or small business will tell you that it is easier and far more responsible to reduce spending over 12 months than to budget the way it has been done over the last 3 years which forced a year’s worth of harmful cuts into the last 4 months of the State's fiscal year.

Waiting until the last minute, as has been done the last several years, lacks compassion and is just not responsible to those Coloradans who are deeply affected by the harmful cuts forced by irresponsible budgeting practices.

We will be bold by setting course on a more responsible and reasonable approach to setting Colorado’s budget.

We will propose that we subtract a reasonable margin (2.75%), which equates to $195.1 million, from the December forecast, placing the proposed general fund figure at $6.9 billion for the coming fiscal year. Given that our economists anticipate a long, slow recovery, I believe it is more prudent to base next year’s budget on a more conservative estimate.

This step, necessary and prudent as it is, will make the challenge we face in balancing the budget all the more difficult. We all know this to be true. And to think that this challenge will somehow be less difficult if we budget to a figure that is, once again, overly optimistic simply ignores the realities of balancing our budget.

Now, to those who will no doubt begin demanding to know how we will balance our budget under this proposal, my answer is simple.

We are going to meet the challenge of balancing our budget together, in collaboration with the Senate and the Governor, over the coming 100 days.

We will let the Joint Budget Committee do its work and address the substance of each program and each agency on its own merit. In short, we will do the work we must do; a process that will no doubt be marked by words of the Denver Post on Sunday: "For now, however, frugality should carry the day."

In the coming weeks and months, we will have to carefully consider all of the needs seeking funding from Colorado's general fund. It is my sincere hope that we do so thoughtfully, with a vision toward economic recovery and protecting those neediest among us.

We look forward to continuing to work closely with our colleagues on both sides of the aisle, and in both chambers, as well as Governor Hickenlooper, to accomplish this.

House Speaker Praises State Auditor Sally Symanski

House Speaker Frank McNulty, R-Highlands Ranch, today praised retiring Colorado State Auditor Sally Symanski for her service and dedication to Colorado. McNulty spoke highly of Symanski’s dedication to performing fair and detailed audits and wished her well in her future endeavors.

“A key role of the State Auditor is to work closely with the Legislative Audit Committee, which serves as the taxpayer’s watchdog to find waste and abuse and keep state government running efficiently,” McNulty said. “One only has to take a quick look at her work as Auditor to know that she worked exceptionally well with the committee members in performing these duties.”

McNulty pointed to several recent audits that resulted in a savings of taxpayer dollars including a June of 2010 audit that uncovered a state subsidized home phone program that was being abused by nearly 10,000 people who were not qualified to participate in the program.

“The work of Ms. Symanski and her staff has saved Colorado taxpayers money and in turn helped to ease the budget shortfall we are currently facing,” said Rep. Jim Kerr, R-Littleton. “As the longest serving member of the Legislative Audit Committee, I can speak with some authority when I say that Ms. Symanski will be missed.”

Kerr pointed out that the Legislative Audit Committee works closely with the State Auditor’s Office as the only true oversight committee over all of Colorado state government. “Our job is to work with the Auditor’s Office to find waste, fraud, and abuse in state government and make sure that appropriate action is taken to correct these problems.”

Another March 2010 audit of RTD uncovered an excessive salary paid to the RTD General Manager including a $1.3 million one-time payout.

“Sally Symanski is a consummate professional whose tenure as State Auditor resulted in substantial savings of taxpayer dollars,” McNulty said. “Her attention to detail and professionalism resulted in audits that have been fair and concise. She will be missed and I thank her for her service to the state of Colorado.”

Symanski announced her retirement yesterday.

House Speaker Frank McNulty Opening Day Remarks

Speaker of the House Frank McNulty, R-Highlands Ranch, today delivered the following remarks to the members of the Colorado State House of Representatives at the opening of the First Session of the 68th General Assembly:

Good Morning. Thank you all for joining us today as we begin the First Session of the 68th General Assembly. I’d like to take a moment to recognize our new members, Representatives Mark Barker, Jon Becker, Don Beezley, J. Paul Brown, Kathleen Conti, Don Coram, Crisanta Duran, Rhonda Fields, Deb Gardner, Millie Hamner, Chris Holbert, Matt Jones, Janak Joshi, Pete Lee, Dan Pabon, Robert Ramirez, Ray Scott, Keith Swerdfeger, Libby Szabo, Angela Williams, and alphabetically last, but not least, Roger Wilson.

It is also appropriate to recognize those who, due to term-limits, will be serving in this Chamber for their last General Assembly.

Please help me congratulate and thank Representatives Balmer, Kerr, Liston, Massey, McKinley, Riesberg, Solano, Soper and Todd. Thank you for your service to the people of Colorado.

To all Members, congratulations on serving in the 68th General Assembly and a special thank you to your family and friends whose sacrifices far too often go unrecognized.

Congratulations to our new Governor, John Hickenlooper and new Lieutenant Governor, Joe Garcia.

I am blessed to come from a big family and they are here today. My Mom Denise, my Dad Frank, my brothers and sisters and their families; Troy and Dani – Greg, Loralei & Cole; Kourtney and Lloyd - Shaylynne, Shane and Nicole – Rylie & Brianna, Chadd and Kimi; and Lyndsay and Nick - Cameron. Thank you for all of your support and for making time to join us today.

Finally, I would like to recognize a man who is intimately familiar with the Chamber, and a man for whom I have the most sincere and utmost respect, former Speaker of the House Russell George.

Madame Majority Leader, Mr. Minority Leader, Colleagues; Coloradans are struggling. Over the past few years, all of us have tightened our belts and done more with less. Our State’s unemployment rate is the highest it’s been in decades. Colorado’s small businesses continue to fight for survival, and many working families are struggling to put food on the table and to pay their bills. And, while there is no exact formula for what is needed to create an environment that fosters job creation and economic recovery, there are a few simple truths that voters have asked us to reestablish. An education program that is funded, flexible and accountable; a transportation system that moves people, goods, and services, safely and efficiently throughout Colorado; tax rates that are low and fair; and a regulatory system that is stable and sensible with an eye toward compliance and consumer protection, not punishment. For us all, job creation and economic recovery must be our focus with all proposed legislation.

Undoubtedly, we will have our differences from time to time. We are elected leaders after all. But these philosophical disagreements should not distract us from the important challenges at hand. There is far too much at stake. Now is the time for new solutions to combat our economic recession. This body needs innovative ideas to help Coloradans get back to work.

The good news is, the Centennial State has confronted many challenges in its 135 year history. We have overcome them all. From the 19th century settlers and frontiersmen who endured harsh winters and difficult terrain to head west in search of a better life for themselves, to the countless servicemen and women who served, and continue to serve, in the defense of freedom. For those in the Chamber and the gallery who have served, or who are serving, in our nation’s armed forces, please stand and allow us to thank you for your service.

Colorado was founded with the pioneer spirit that drives everyone who calls our state home. And as the Dust Bowl ravaged the Eastern Plains of Colorado, our Governor at the time, Edwin “Big Ed” Johnson, a Democrat, struggled with the challenges we face today. He seized the opportunity to lead. Big Ed was critical of Washington, D.C.’s New Deal plan, which he saw as a one-size fits all approach. Rather than keep this one-sized approach, he focused on working with the federal government and state leaders to create Colorado’s own reorganization and reform program. Governor Johnson pushed for a balanced state budget, instituted tax reforms, and even managed to draft a robust highway construction program. All during the depths of the Great Depression.

With this same spirit of commitment and optimism, we will prevail over the difficult economic challenges of today. Perseverance pays off and I’m confident this House will pass the common- sense legislation our state desperately needs to put Coloradans back to work. Our collaborative efforts must recognize the distinct, but important differences in background, philosophy and outlook of Colorado’s diverse communities from rural to urban to suburban.

Last November, Coloradans sent us a message; they want us to work together earnestly to find solutions to our economic ills and to set this state on the right track again. Coloradans want a state government that knows its role – a government that lives within its means and facilitates economic growth.

We are listening to the voters. They want us to provide for services they care about - that guarantee Colorado will go smartly into the future. Today I am pledging to work with the new administration to begin a serious conversation about reinventing government, reforming procurement, and utilizing technology to effectively and efficiently deliver serves wherever possible. There is no better time - no greater need, for us to come together than right now.

Our state faces an historic budget gap of more than $1 billion. On this, let me be clear. The days of balancing the state budget on the backs of working families and small businesses are over. We cannot treat the state budget differently than families across Colorado treat their own budgets. We have the next 120 days to learn how to do it.

The bill for kicking the can down the road has come due. We will not spend what we don't have, and yes, I recognize that this will require the State of Colorado to further tighten its belt. But that same belt tightening has gone on throughout Colorado by working families and small businesses for the past four years. If we refuse to make the tough choices now, these same choices will become more difficult for Colorado to bear down the road. These tough choices will require working in good faith.

Governor Hickenlooper; and my friends in the Senate: We stand ready to work with you and make the tough choices. But we must—and we will—adhere to our core principles and to the will of the people of Colorado.

Along with tax relief and regulation reform, we are committed to reinstituting a spending limit to protect future generations from government spending excesses. If we have learned anything from the past few years, it’s that excessive government spending prolongs economic recessions. It does not shorten them. Changing the culture of spending will not be an easy task. But it is imperative to the long-term fiscal stability and solvency of our state. Our spending limitation must be accompanied by a long-term commitment to fiscal responsibility. The time has come for us to do our part now to avoid in the future the kind of catastrophic budget cliff that Colorado faces today. We must pass a substantive state savings account, protected by the requirement of a super majority vote.

On your desk is a copy of our state and nation’s Constitutions, along with your oath of office. This is not a simple symbolic action. Rather, I ask each of you to consider all three documents as you take to your work here. With a challenging session ahead of us, recognizing and respecting our founding documents will be key foundations for our decision making. It is the Declaration of Independence that serves as the soul of our Constitution and our nation in the recognition that, “Governments are instituted among Men-deriving their just powers from the consent of the governed…”

With that admonition in mind, House leadership is also committed to open and transparent government. Coloradans deserve a Legislature that is honest and forthright. Seeing as everyone in this chamber is tasked with spending taxpayer dollars appropriately, we owe it to our constituents to keep them informed of how their money is being spent. We look forward to working with the Senate, the Governor, and our state agencies across our system of government.

We are committed to quality and efficiency in the delivery of health care by utilizing free markets that allow Coloradans to make their own healthcare decisions.

We are committed to our colleges and universities that will prepare graduates to compete in a 21st century economy.

We are committed to working with our colleagues across the aisle to better serve the entire state of Colorado. Bipartisanship gets lots of talk time, but is always more difficult in practice. I’m reminded of the humor by P. J. O’Rourke in his comments that, “The Democrats are the party that says government will make you smarter, taller, richer, and remove the crabgrass on your lawn. The Republicans are the party that says government doesn’t work and then they get elected and prove it.” Our work together will be difficult, but it can be done with good humor, and it must be done with good faith.

Colleagues, we must challenge ourselves to do what we can to spur innovation and entrepreneurship in our state. We must recognize that Colorado’s private sector can, and should, play a remarkable role during the next decade in aerospace, technology, tourism, agriculture, natural resources and perhaps most exciting, bioscience, which is one of the fastest growing industries in Colorado, growing at a rate faster than the national average. Let’s recognize that economic development is as important in Craig or Lamar as it is in Denver or Grand Junction.

There is no question that Colorado is a great place to live. The beautiful scenery from all four corners of our state is second to none. Colorado’s economy can thrive off of tourism. The more skiers, hikers, rafters, bikers, and sightseers we can attract to Colorado, the better our economy will perform.

We must enter into this session knowing that we can truly and sincerely legislate with not just an eye toward the next election, but with a real vision for the future. We have an opportunity to do things differently; understanding that sacrifice now will lead to a better future for generations of Coloradans.

There are no easy answers, the tough decisions remain, but together, we will meet these challenges head-on. Let’s embrace our role, limit what we do, and send a message to the citizens and businesses of this state that we are ready to make the same tough choices as they are being forced to make.

As the 68th General Assembly begins, each of us shares in the responsibility to govern wisely. We have been called by our friends and neighbors to serve them during these challenging and remarkable times. We are blessed that they have trusted us to guide our great State through these raging waters. Colleagues, we are up to the task. We will govern with consistency and compassion. And when we look back on this General Assembly, an assembly of citizen legislators, we will be proud of what we have accomplished together.

Thank you all for your willingness to serve these four corners we call home. The real work starts now. May God bless you, may He bless our great state of Colorado, and may He continue to bless the United States of America.

###