2010 SENATE JOINT RESOLUTION 10-010 BY SENATOR(S) White, Keller, Tapia; also REPRESENTATIVE(S) Ferrandino, Pommer, Lambert, Labuda. CONCERNING THE DECLARATION OF A STATE FISCAL EMERGENCY PURSUANT TO SECTION 21 (7) OF ARTICLE X OF THE STATE CONSTITUTION. WHEREAS, The members of the Sixty-seventh General Assembly and the Governor declared Colorado to be in a state fiscal emergency for fiscal year 2009-10; and WHEREAS, While there are indications that the recession has subsided and a slow recovery has begun, the recession appears to be even deeper than forecasted in the first half of 2009; and WHEREAS, In addition, the national economy remains in a weakened state with restrained consumer spending, high unemployment, and continued instability in the financial and real estate sectors that continue to dampen economic recovery; and WHEREAS, Colorado is suffering significant losses in revenues from decreased sales taxes and corporate income taxes while providing basic services to an increased number of Coloradans; and WHEREAS, According to the Colorado Legislative Council Staff "Economic and Revenue Forecast" dated December 18, 2009, the significant loss of general fund revenues will result in a general fund revenue projection that is more than $1.2 billion, or 16.1 percent, less in FY 2009-10 than two years earlier in the pre-recession FY 2007-08; and WHEREAS, In FY 2010-11, general fund revenue is expected to increase only $284 million, or 4.4 percent, and still remain close to $1 billion lower than in FY 2007-08; and WHEREAS, The significant reduction in expected general fund revenue for FY 2009-10 and FY 2010-11 has resulted in a state budget crisis; and WHEREAS, The state has had to address a budget shortfall of close to $1.2 billion for FY 2008-09 and is addressing a budget shortfall for FY 2009-10 totaling $1.7 billion, of which more than $600 million has yet to be addressed; and WHEREAS, The state is expected to have $1.5 billion less available for spending in the general fund in FY 2010-11 than is currently budgeted to be spent in FY 2009-10; and WHEREAS, General fund revenues are not expected to return to FY 2007-08 levels until some time after FY 2011-12, the end of the Colorado Legislative Council Staff forecast period; and WHEREAS, Section 21 of article X of the state constitution provides for the imposition of additional state cigarette and tobacco taxes and allows the resulting tax revenues to be used to expand health care for children and low-income populations, tobacco education programs, and the prevention and treatment of cancer and heart and lung disease; and WHEREAS, Section 21 of article X of the state constitution expressly recognizes that there might come a time when the state would experience a fiscal emergency and sets forth the allocation of the tobacco tax revenues; and WHEREAS, Section 21 (7) of article X of the state constitution allows the General Assembly to declare a state fiscal emergency for a single fiscal year by a joint resolution approved by a two-thirds majority vote of the members of both houses of the General Assembly and by the Governor; and WHEREAS, The adoption of a joint resolution declaring a state fiscal emergency allows the General Assembly to use revenue generated under section 21 of article X of the state constitution for any health-related purpose and to serve populations enrolled in the children's basic health plan and the Colorado medical assistance program at their respective levels of enrollment on January 1, 2005; now, therefore, Be It Resolved by the Senate of the Sixty-seventh General Assembly of the State of Colorado, the House of Representatives concurring herein: (1) That we, the members of the Sixty-seventh General Assembly, do hereby declare Colorado to be in a state fiscal emergency for FY 2010-11; and (2) That, upon the signature of the Governor and pursuant to the provisions of section 21 (7) of article X of the state constitution, the General Assembly intends to use revenue generated under section 21 of article X of the state constitution for any health-related purpose and to serve populations enrolled in the children's basic health plan and the Colorado medical assistance program at their respective levels of enrollment on January 1, 2005. Be It Further Resolved, That copies of this Joint Resolution be sent to Cary Kennedy, Colorado State Treasurer, and David J. McDermott, Colorado State Controller. ____________________________ ____________________________ Brandon C. Shaffer Terrance D. Carroll PRESIDENT OF SPEAKER OF THE HOUSE THE SENATE OF REPRESENTATIVES ____________________________ ____________________________ Karen Goldman Marilyn Eddins SECRETARY OF CHIEF CLERK OF THE HOUSE THE SENATE OF REPRESENTATIVES APPROVED________________________________________ _________________________________________ Bill Ritter, Jr. GOVERNOR OF THE STATE OF COLORADO