Colorado House approves easing spending limits
DENVER, Colorado ” The Colorado House has tentatively approved a proposal by Gov. Bill Ritter and Democratic lawmakers to remove a 6 percent limit on growth in general fund spending and replace it with limits based on personal income growth.
Supporters said Monday the budget fix is needed because current limits won’t allow the state to recover when the economy rebounds after the recession.
Republicans opposed the plan. They say the Legislature is just trying to find a loophole in the state’s tough limits on taxes and spending.
Current state law allows the total general fund budget ” which covers such big-ticket items as public schools, prisons and higher education ” to grow by 6 percent a year. If the law passes, that cap would be replaced with higher spending limits.
The bill faces a third reading before it goes back to the Senate for consideration of amendments.