City Council Agenda and Packet 1997 01 14

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gressman Dan Schaefer, R- Lakewood, who chairs a key House committee on the subject. Sen. Dave Wattenberg, R- Walden, and Rep. Schwarz will sponsor legislation establishing a study of the issue. Municipal interests will watch closely such items as how deregulation will affect the 29 municipally owned and operated electric and gas systems; how deregulation may reduce revenues accruing from franchise fees and sales and use tax revenues; and what effect deregulation will have on residential rates, because Colorado has some of the lowest electric energy costs. A CML committee chaired by John Kappa, West Slope municipal attorney, is examining all of this right now. Prisons The state's prison population is expanding again, forcing the state Department of Corrections (DOC) to move 500 inmates to out -of -state facili- ties. DOC is asking the Legislature for a $167 million funding increase next year. The state's current prison capacity of 8,509 beds falls 'short of the more than 12,000 convicted felons awaiting cus- tody. DOC has contracts with several privately run prisons in the state. There are more than 4,500 beds on line, like the Sterling maximum facility with nearly 1,400 beds scheduled to open in 1998. How this funding pressure will affect the state's general fund during the 1997 session will bear monitoring. On top of this, there are pressures mounting with the detention of youthful offenders and the need for more facili- ties to house them, especially in Denver. There is a pending Executive Branch budget request of nearly $7.3 million to support the staffing and operation of such new facilities. Facility location decisions remain a point of contention among and between Adams County, Denver, and Aurora. The juvenile cor- rections population is expected to increase by 37 percent over the next four years. Budget surplus The state's general fund is in excellent health. Solid revenue growth during FY 95 -96 caused the year -end reserve to reach nearly $370 million. The FY 96- 97 reserve is anticipated to be around $317 million. Revenues are likely to exceed TABOR limits in FY 97 -98 by about $8 million. State expenditures are expected to remain below TABOR limitations, according to a September analysis done by the Legislative Council. At a minimum, expect to see a debate in the Legislature over whether to refer a measure to "de- Bruce" certain state rev- enues (and either earmark the revenue or put the revenues directly into the general fund) or issue a taxpayer refund. Prognosis The General Assembly has a continuing conservative disposition going into 1997. Will Romer exercise his veto power as often in 1997 as he did last session, especially on behalf of local government interests? How will the General Assembly and the Executive Branch get along in the two years remaining of Romer's final term? Will Romer even finish out his term or opt to join President Clinton's adminis- tration? What will be the impact on the Legisla- ture with the departure of 27 lawmakers by 1998 due to the first wave of term limits kicking in at the state level? Will the type of decision making be different on the eve of term limits? Will there be a continuing ideological slant against local control or a willing- ness to cooperate? The land use area will be a test of wills in this regard. Compromise may well be the watch- word here. How will the ongoing debate in Wash- ington between and President December 6, 1996 CML Statehouse Report Get connected! For the latest information on legislative matters, check out the timely updates on CML Connection. For info on how to get connected, contact Steve Smithers at CML, (303) 831 -6411. For more general infor- mation on the League check out the CML homepage at www.capcon.com /cml