Press Release - Colorado Economic Perspective
OFFICE OF GOV. BILL RITTER, JR.
FOR IMMEDIATE RELEASE
THURSDAY, MARCH 20, 2008
CONTACT
Evan Dreyer, 720.350.8370, evan.dreyer@state.co.us
GOV. RITTER'S BUDGET OFFICE RELEASES QUARTERLY ECONOMIC AND REVENUE FORECAST
Gov. Bill Ritter's Office of State Planning and Budgeting released its March 2008 economic and revenue forecast today for the five-year forecast period covering the current fiscal year (2007-08) through FY 2011-12. The complete forecast is available by clicking here.
"Colorado's economy is still doing better than most of the country, but the national economic downturn is expected to creep into our state later this year," said Todd Saliman, director of Gov. Ritter's Office of State Planning and Budgeting. "However, we believe that the state's position with respect to the energy sector in particular, will allow for Colorado to weather any impending storm much better than most states. Stabilization of the housing market, as well as the continued support and development of emerging industries such as renewable energy and biosciences, will be critical to Colorado's ability to adapt to the changing economic landscape."
Highlights from the Revenue Forecast:
- A combination of slowing economic growth and the near-term negative revenue impacts from the federal stimulus package resulted in a decrease in the outlook for General Fund revenue, as the forecast was decreased by approximately $127 million (1.6%) for FY 2007-08, signaling a slight weakening of the Colorado economy.
- The consensus forecast for severance taxes conducted with Legislative Council Staff was essentially unchanged for FY 2007-08, but was increased in the out years of the forecast to match higher expectations of future gas prices.
- Total general fund revenues for 2006-07 increased 8.3 percent, and are expected to continue growing, but at slower rates over the forecast period as moderate slowing in the national economy influences the Colorado economy, particularly through tourism.
- The forecast shows transportation funding through SB 97-1 and HB 1310 transfers totaling over $1 billion for five-year forecast period, after receiving $394.7 million in FY 2006-07.
- Under the provisions of Referendum C, the state is projected to retain $6.24 billion from fiscal 2005-06 through 2009-10. The $30 million increase in this figure over December forecast figures occurs due to lower-than-expected inflation offsetting the decreases in expected revenue. A TABOR refund of $40.1 million is expected in FY 2011-12.
Highlights from the Economic Forecast:
- The forecasts for most Colorado economic indicators were largely decreased slightly for the near-term, as expectations of growth in both the national and local economies declined.