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Press Release- June 20, 2007

OFFICE OF GOV. BILL RITTER, JR.
FOR IMMEDIATE RELEASE:
WEDNESDAY, JUNE 20, 2007

Contact:
Wil Alston, 303.866.6323

GOV. RITTER'S BUDGET OFFICE RELEASES ECONOMIC AND REVENUE FORECAST

Gov. Bill Ritter's Office of State Planning and Budgeting released its June 2007 economic and revenue forecast today, the second forecast since the Ritter administration took office in January.

The five-year forecast period covers the current fiscal year (2006-07) through fiscal year 2010-11.

"The economy continues to be strong," said Todd Saliman, director of Gov. Ritter's Office of State Planning and Budgeting. "While the national economy has slowed, Colorado's remains healthy. Our unemployment rate is well below the national average and employment is expanding across nearly all sectors."

Highlights from the Revenue Forecast:

  • The forecast shows a moderate increase in individual income tax growth for 2006-07 from the March forecast (6.6 percent in March; 8.9 percent in June).

  • Total general fund revenues for 2006-07 are forecast to be $7.5 billion, up $62.9 million from the March forecast.

  • The forecast shows transportation funding through SB 97-1 and HB 1310 transfers totaling more than $1.3 billion for five-year forecast period, up $19 million from the March forecast.

  • The forecast shows revenue for capital construction for fiscal 2006-07 at $189.4 million, a $49.6 million increase from the December forecast.

  • Under the provisions of Referendum C, the state is projected to retain $5.63 billion from fiscal 2005-06 through 2009-10. TABOR refunds will resume in 2010-11, with a projected refund of $56.4 million.

Highlights from the Economic Forecast:

  • Colorado's unemployment rate for April 2006 was 3.5 percent, the lowest since June 2001.

  • The 2006 consumer price index for the Denver-Boulder-Greeley area increased 3.6 percent after posting a 2.1 percent increase in 2005. The inflation forecast for 2007 is a 3.2 percent increase and for 2008 a 2.8 percent increase.

  • Colorado wage and salary income rose 7.4 percent in 2006 and is forecast to increase 6.8 percent in 2007.