Press Release - Sept 19, 2007
OFFICE OF GOV. BILL RITTER, JR.
FOR IMMEDIATE RELEASE
WEDNESDAY, SEPT. 19, 2007
CONTACT
Evan Dreyer, 720.350.8370
GOV. RITTER'S BUDGET OFFICE RELEASES ECONOMIC AND REVENUE FORECAST
Gov. Bill Ritter's Office of State Planning and Budgeting released its September 2007 economic and revenue forecast today, the third forecast since the Ritter administration took office in January.
The five-year forecast period covers the current fiscal year (2007-08) through fiscal year
2011-12.
"Though the local economy continues to be strong, there are growing concerns that a national economic slowdown could creep into Colorado," said Todd Saliman, director of Gov. Ritter's Office of State Planning and Budgeting. "Despite these concerns, Colorado's economy remains healthy. Our unemployment rate is well below the national average and some local economies are booming, particularly on the Western Slope."
Highlights from the Revenue Forecast:
- Individual income tax revenues continued to boom in 2006-07, rising 11.3 percent. These revenues have likely been bolstered by a healthy investment market that has yielded significant capital gains, but are expected to slow considerably over the next two years.
- Total general fund revenues for 2006-07 increased 8.6 percent, but are expected to grow at slower rates over the forecast period.
- The forecast shows transportation funding through SB 97-1 and HB 1310 transfers totaling more than $1.3 billion for the five-year forecast period, after receiving $410.4 million in FY 2006-07.
- Revenue for capital construction for fiscal 2006-07 was $235.8 million, with an additional $183.6 million expected over the five-year forecast period.
- Under the provisions of Referendum C, the state is projected to retain $5.99 billion from fiscal 2005-06 through 2009-10. The $360 million increase in this figure over June forecast figures is almost entirely due to increases in the forecasts for severance taxes and unemployment insurance. Expected slower growth in cash fund revenue will mean that there will not be a TABOR refund in FY 2010-11 or FY 2011-12.
Highlights from the Economic Forecast:
- The forecast for Colorado employment was reduced slightly, as expectations of growth in both the national and local economies were reduced.
- The Denver-Boulder-Greeley consumer price index increased 2.5 percent during the first half of 2007. This lower-than-expected figure pushed the forecast for 2007 down to 2.8 percent from 3.2 percent in June.