Steamboat Today, Aug. 13, 2009

Page 12

LOCAL

12 | Thursday, August 13, 2009

STEAMBOAT TODAY

Budget cuts likely to affect northwest state Senators continued from 3

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have a broader view than just our district,” Morse said. “The two of us are going to fight battles differently after this tour.” Shaffer said health care, economic development and education will be the Democratic majority’s top three priorities in the state Legislature this year. He said the statewide tour will help shape the legislation built under each of those categories. Shaffer and Morse also acknowledged that the state’s budgetary woes also will command a large amount of their attention. Morse said the state’s latest financial projections show that $900 million needs to be cut from the general fund budget.

Morse said that’s the equivalent to closing one out of five public schools in the state or eliminating the state prison system. “That’s the order of magnitude of what we’re talking about,” Morse said. The first round of cuts, totaling $400 million, will be made by Gov. Bill Ritter and will take effect in September. Shaffer said Ritter will present his suggested cuts to the Legislature’s Joint Budget Committee next week. The state Legislature will address the next $500 million in state cuts during the 2010 legislative session. The pain will be spread statewide and could include cuts to programs important to Northwest Colorado such as

the money the state spends marketing itself to tourists. That spending was cut from $20 million to $15 million during this year’s legislative session. There also could be more transfers from federal mineral lease and severance tax revenues that otherwise would have been allocated to local governments in areas where the oil and gas industries operate. “If we can somehow just get up this mountain and around the curve, we’ll be OK,” Morse said. “We know the top three things in the Senate are budget, budget, budget. But what are the next two? How do we use what little money we do have strategically on what’s really important?”

Dealerships nervous about compensation Cars continued from 3 and Jeep vehicles, and Steinke said they’d sold about seven cars through the program. Cook said his Steamboat and Craig dealerships had delivered six to eight through the program. “I think it’s done what they wanted it to do,” Cook said about the program. “I think the dealers at this point are still real nervous about trying to collect the money. We’ve got a lot of money hanging out.” The government is requiring

car dealers to prove that they disabled the vehicles. But dealers can wait until seven days after the sale to destroy the engine in case they don’t get approval for the discount, Cook said. If their sale is rejected, dealers could wind up having given a $4,500 price cut in return for a car worth a few hundred bucks, he said. Another side effect of the program is that dealers are having a tougher time buying cars from other dealerships. Where they once could buy a vehicle they wanted outright, dealerships

now want to trade a car, Steinke said. “There’s less dealers out there and higher demand,” Steinke said. “The whole thing’s changing right in front of our eyes.” Steinke said Cash for Clunkers has gotten people talking and thinking about buying cars. But the program took off quickly, and he predicted that interest would wane as people bought the cars they needed. “I think there’s going to be a saturation point in there, and it’ll be interesting to see where that hits,” Steinke said.

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