Gov. Jared Polis limits evictions, cuts immediate state spending by $228.7 million

Colorado Gov. Jared Polis slashed immediate government spending by $228.7 million in response to precipitous shortfalls in the state’s budget, banned evictions statewide and extended closures at ski resorts through several executive orders late Thursday night.

On Friday, the governor expanded on his orders, saying belt-tightening from the global pandemic is happening to families and businesses across the state — and the government is no exception.

“I declare that there are not sufficient revenues available for expenditure during the FY 2019-2020 to carry on the functions of the State government and to support its agencies and institutions such that the suspension of portions of programs and services set forth in this Executive Order are necessary,” Polis wrote.

State revenue forecasts have been thrown out the window, and the governor’s actions underscore the serious economic consequences for state and local governments as a result of the new coronavirus. State budget writers are tasked with determining which vital programs will make the cut when the fiscal year ends June 30.

The dim budgetary forecast comes as at least 820 people in Colorado have died from complications related to COVID-19, with more than 15,700 confirmed cases across the state — even as officials note that far more people have likely had the virus.

Colorado is hoping to tap federal funding to help with its budget crisis, Polis said Friday on a conference call with reporters, adding that he has not heard about efforts to increase revenue from state taxpayers.

“This would be the wrong time to raise taxes in a recession,” the governor said on the conference call.

More financial reductions and restrictions are likely in the following year, he wrote in his executive order.

The budget cuts only affect the current fiscal year ending June 30 and impact nearly every sector of statewide spending, including energy, corrections, education and Medicaid. The spending cuts will not cause any layoffs or furloughs of state employees and “will not jeopardize the state’s response to the COVID-19 public health emergency,” the governor’s budget director Lauren Larson wrote in a letter to state lawmakers.

“The economic disruption associated with coronavirus disease 2019 (COVID-19) is causing precipitous and significant revenue shortfalls for the State,” Polis told state lawmakers in a letter. “These are challenging times that force difficult financial decisions to maintain a balanced budget.”

The other executive orders issued Thursday night did the following:

Evictions

The move to ban evictions comes after weeks of prodding from housing advocates, and after the governor previously said he would encourage law enforcement agencies not to carry them out, but declined to issue a statewide order. Last week, a scorecard on eviction policies from Princeton University’s Eviction Lab and Columbia Law School put Colorado 46th out of 50. With the new executive order, the state jumped to sixth in the nation.

Without a statewide mandate, local jurisdictions were forced act on their own — which some had done, including Denver, Mesa, Weld and Boulder counties.

The governor’s executive order includes protections banning landlords from assessing fees to renters for nonpayment; directing landlords to notify tenants in writing of their federal eviction and foreclosure protections; and directing state agencies to work with property owners and landlords on creating new agreements to allow tenants additional time to repay rent.

“Nothing in this Executive Order shall be construed as relieving an individual from their obligation to make mortgage payments or rent payments,” Polis wrote.

The protections exclude tenants who pose “an imminent and serious threat to another individual or causes significant damage to property.” An individual who tests positive for COVID-19, or has been exposed to someone with the virus, is not considered to pose a threat.

Polis on Friday said the courts need to focus on pressing criminal matters and cannot process eviction claims. Renters’ protections, he said, will last through May, but indicated courts may be able to resume them in June.

But some housing advocates say the governor’s actions do not address the root problem: that is, people still won’t be able to pay rent if they don’t have sufficient income.

“Austerity is not the answer,” said Desiree Kane, an Estes Park resident who helped organize a rent strike and eviction defense Facebook group which has grown to more than 4,200 members. “We need Polis to demand federal stimulus dollars, not implement austerity measures that harm the poor in exchange for half-measures on housing. We still demand rent and mortgage cancellation so people don’t continue to spiral into debt even more.”

Spending cuts

The cuts in spending affect line items in the state’s budget such as minimizing travel for conferences, delaying projects and not immediately filling some open positions.

But 80% of the savings — $183 million — will come from Medicaid services, the government health program for low-income individuals and those with disabilities, as well as seniors needing nursing home care.

The budget reduction is possible because Medicaid expenses have been reduced sharply with the elimination of elective procedures and a steep decline in people seeing their doctors, Jeff Bontrager, director of research and evaluation at the Colorado Health Institute, said.

In addition, the federal government has upped its share of Medicaid payments. Colorado previously split Medicaid payments roughly 50-50, but now the federal government has increased its portion to 56.2%, so the state is responsible for less, Bontrager said.

“For right now, my understanding is these cuts are not going to be impactful for people,” he said.

But as people resume elective procedures and more people lose their jobs and sign up for Medicaid, the health care system could see a surge in demand.  The coming fiscal year budget is where people might see some painful cuts, Bontrager said.

“It’ll be a really difficult exercise to, on the one hand, be making cuts, while on other hand prepare for a surge in demand,” he said.

Some of the other spending freezes in Polis’s executive order include:

  • $600,000 to reimburse private prisons for housing offenders
  • $500,000 to help teachers pay off their student loans
  • $200,000 in college scholarships for youth who been part of the criminal justice system
  • $500,000 for senior services
  • $26,250 for foster care and adoptive parent recruitment

Everything from child welfare services, mental health programs and Colorado Parks and Wildlife were impacted in some form.

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