Lower-than-anticipated payments from the federal government for Medicaid has the state backpedaling a bit on some spending while dipping into cash funds again and also tapping into a new source of dough: projected revenues from the budding industry of medical marijuana.

Gov. Bill Ritter announced this week that in order to fill the $60 million hole in the state budget created by the lower payments from the feds, he will reduce spending by $6.2 million, with the remaining $53.4 million coming out of various cash funds–funds collected and intended for specific uses—as well as the anticipated revenue from fees on medical marijuana licenses.

Ritter said the revised budget will maintain the status quo while keeping Colorado on track for economic recovery.

“We are preserving essential services, protecting the safety net, minimizing pain and requiring shared sacrifices and shared solutions from everyone,” Ritter said. “This is a responsible plan that continues to position Colorado for a healthy and sustainable recovery.”

However, Senate Republicans issued a statement chiding the governor’s latest budget plan and calling for “new priorities in state spending and less reliance on federal dollars” in addressing the state’s budget shortfall.  Senate Republican Minority Leader Mike Kopp, of Littleton, said relying on money from the feds is not good financial planning and sets the state up for a fall when the federal funding falls short or runs dry, as it did this time.

“The Democrats’ partnership with Washington is not working for Colorado taxpayers,” said Kopp. “Colorado businesses and families cannot afford any more financial burdens because Democrats in the state legislature and Gov. Ritter speculated on federal funding and guessed wrong.”

Kopp said reliance on cash funds and anticipated revenue is not sustainable into the future.

“It is time we created real priorities in the state budget and stopped the budgeting gimmicks that have plagued the budget setting of the majority party,” said Kopp.