DENVER -- Big decisions must be made -- raise taxes or cut state services. State lawmakers are weighing the options after seeing a budget that is estimated to be $300 million short this year.

The Joint Budget Committee (JBC) is meeting Monday to discuss its options. Joint Budget Committee Vice Chairman Jack Pommer said a special session will not be needed as this amount falls under the Gov. Bill Ritter’s budget-adjusting purview.

Don Marostica of Larimer County said there are six main items Colorado’s budget is spent on. -Health -Human Services -Transportation -Higher Educations -K-12 -Corrections

The budget shortfall is a result of the recession as state sales tax revenue is down.

“The economy is certainly making our budget worse,” said Pommer.

Pommer said most likely no additional cuts will occur this year as the end of the fiscal year is almost upon us and most of the money has already been spent.

“We prepared in the budget in a way that we have a reserve we can spend down,” said Pommer. “But of course the reserve has to be paid down the following year anyway.”

The treasurer also has the option to borrow money from next year’s budget to pay for this years. If that is done though, the problem just gets pushed back.

“Eventually we have to solve this problem, we have to cut one to $1 1/2 billion out of the budget permanently or we have to raise taxes $1 1/2 billion a year,” said Pommer.

Marostica said this is where the difficulty begins. He said the cuts should come from higher education and corrections.

No matter what decision is made, someone will be unhappy.

“At some point we have to make a decision; cutting everything until we are doing a poor job at everything doesn't really makes sense,” said Pommer. “In the long term we either have to keep the services and pay for them or cut the services -- some of them and do the rest better.”

Ritter said he would share his plan on the budget Monday, after the Joint Budget Committee hearing.