DENVER -- Lawmakers are considering a plan to eliminate a cap on spending as they seek ways to cut $625 million from this year's state budget.

Increases in state revenue usually require voter approval. But Republican Don Marostica, who sits on the Joint Budget Committee, said lawmakers believe they have the authority to change the law.

The spending limit is known as the Arveschoug-Bird limit from its 1991 sponsors. It set a 6 percent cap on increases in general fund spending. Marostica disclosed the idea Monday after lawmakers were briefed on a plan to balance the current budget ending July 1.

The money has to be cut because tax collections are dropping because of the recession.

Budget Proposal Hits K-12, Higher Education

Public schools would face a $65 million cut and higher education would lose $30 million under a proposal to close a $625 million shortfall in this year's state budget.

The plan presented to state lawmakers Monday would also hike fees for new water wells and delay payments to a police and firefighter pension fund.

Members of the Joint Budget Committee, who developed the plan, warned that worse cuts could be in store next year as tax revenues drop because of the recession.

This year's balancing proposal would avoid deeper cuts to state services largely by dipping into the state's reserve fund and transferring $244 million out of funds set up to fund specific programs, such as a fund to help treat women with breast and cervical cancer. The budget committee said there would still be enough money to fund those programs.

The cuts are needed because fiscal analysts are expecting tax collections to drop by about $600 million this year. Nearly half of that is because of an anticipated drop in capital gains taxes.