Lawmakers received good news about the state's economy on Monday as economists from the legislature and the governor's office presented positive forecasts to the Joint Budget Committee (JBC).
Colorado's economy continues to outperform the national economy as we experience a growth in jobs, an improving housing market and increasing retail sales, especially automobiles. It is "among the most vibrant in the nation," according to the Legislative Council Staff.
Economists gave state lawmakers good news about Colorado's economy and state revenues in their quarterly forecasts to the Joint Budget Committee today.
Colorado's economy is growing at a steady pace and is outperforming the U.S. economy. In fact, it was growing faster during the summer months than previously thought. The data used for the September forecast has been revised upward, showing stronger growth in jobs and income, according to Natalie Mullis, the Legislative Council Staff's chief economist.
State revenues will fall about $250 million short of appropriations for the fiscal year that ends next week, according testimony today by state economists before the Joint Budget Committee. Estimates from the economists are worse than their projections in March and show that the state's economy was weaker than anticipated in the second quarter.
The most recent quarterly revenue estimates by state economists were released on Dec. 12. While there are considerable differences between the two sets of numbers, both estimates project a drop in state revenues since the beginning of the fiscal year.
State economists released quarterly estimates for state revenues on Wednesday. The Legislative Council staff and the governor????????s Office of State Planning and Budgeting see continued growth in Colorado????????s economy. Both agencies project the state will retain more revenue in the current fiscal year than they estimated in March.
This memorandum outlines the potential cuts submitted to the OSPB in preparation for the FY 2006-07 budget. Over the last few months the OSPB and the executive departments have collaborated on a program prioritization exercise in preparation for the possible failure of Referendum C. The current revenue projection shows that we must find $365 million in reductions to balance the FY 2006-07 budget.