It generally is better news than we've seen for nearly two years, but still with a few concerns.  The key points of the March revenue forecast:

·         The FY 2009-10 (current fiscal year) budget is in balance.  This is important because it means that the legislature is not likely to look for additional revenue enhancements or appropriations reductions for this fiscal year.  (Note - Rep. Pommer, the sponsor of HB 10-1263 which would limit tax-deductibility of executive compensation, has indicated that he will likely drop the bill - this is added good news for business.) The forecast for FY 2009-10 general fund revenue increased $229.9 million over the December, 2009 forecast.  Expected revenue is projected to be about $35.1 million above the amount budgeted for expenditure in FY 2009-10.  This comes after a general fund revenue drop of $1.0 billion in FY 2008-09.  FY 2009-10 revenues will be nearly flat (about a $13.0 million decrease) in FY 2009-10.

·         Individual and corporate income taxes and sales taxes are coming in higher than expected.

·         Unemployment is expected to be 8.6% in 2010, 9.2% in 2011 and 8.8% in 2012.  The Unemployment Insurance Trust Fund is in deficit and the state is borrowing money from the Federal Trust Fund to meet benefit payments.

·         Revenue available for appropriation will be $110.1 million higher in FY 2010-11 than in FY 2009-10.  If HB 10-1320, HB 10-1327 and HB 10-1339 are enacted, this amount will increase to $262.2 million.

·          However, a general fund shortfall will exist in FY 2010-11 because many of the FY 2009-10 budget-balancing measures are one-time in nature.  This shortfall will be $320.6 million if all FY 2009-10 (negative) supplemental appropriations are one-time in nature (current law) and $212.2 million if the full budget balancing package is enacted.

·         There will also be a general  fund shortfall in FY 2011-12.  This shortfall will be exacerbated by increased caseloads in the Departments of Human Services and Corrections, increased enrollment in higher education institutions and expected reductions in federal stimulus (ARRA) funds.

·         Severance tax revenues will improve in FY 2010-11 from the FY 2009-10 level of $96.6 million.

·         Copies of the Legislative Council forecast and the forecast of the Governor's Office of State Planning & Budgeting are available online.  The Joint Budget Committee will be using the Legislative Council to craft the FY 2010-11 budget, which is scheduled to be introduced late next week.

 

 

Good evening! 

  

Today is the 68th day of the constitutionally limited 120 day session.  We have seen 371 House bills and 188 Senate bills (559 total) introduced to date. You can access full information on the legislature by going to the Colorado General Assembly Home Page.  This site will have links to bills that have been introduced, contact information for the members of the legislature, records of proceedings (House and Senate Journals), and links to live audio feeds of all committee hearings.  As well, video links to the House and Senate are available.  We encourage you to utilize the many resources available on this website to be informed about the legislative session.

 

 

As the Joint Budget Committee struggles with the budget, it may be helpful for the reader to understand some of the contributing factors to the dilemma we find ourselves in.  Since FY 2000-01:

 

In other words, the state is serving many more citizens with less general fund revenue than 10 years ago!  Not a stable fiscal model!

 

 

River Rafting

 HB 10-1188, by Representative Curry and Senator Hodge has generated a tremendous amount of interest and conflict.  The bill was originally introduced to address a situation that had arisen between a rafting company and a large landowner on the Taylor River near Gunnison.  Ranchers and farmers and other riparian landowners view the bill as a "right to trespass" and have adamantly opposed it.  Rafting companies view it as necessary to continue to allow their access to the state's rivers.  On Friday, the bill was amended to call for a study to be done by the Colorado Water Congress.  The study will include "...legal, economic, environmental, and law enforcement issues related to boating through private property".

 

Workers' Compensation

 

This coming Wednesday, March 24 the Senate Judiciary Committee will take up four bills that came out of the work done last summer and fall by the Interim Committee to Study Issues Related to Pinnacol Assurance.  Pinnacol is a quasi-governmental agency and is the largest writer of workers' comp insurance in the state, with nearly a 60% market share.  Pinnacol is also the "insurer of last resort" for employers unable to obtain statutorily required workers' comp insurance from any other insurer.  The business community, as well as public sector employers are concerned about the potential increased liability and costs associated with these bills.  They include:

• HB 1012 - concerning surveillance in workers' comp cases;
• SB 11 - concerning potential conflict of interest;
• SB 12 - increased penalties; and
• SB 13 - workers' comp accountability

At the same time, another of the Pinnacol Committee bills will be heard in the House Business Affairs Committee.  This bill is:

 

We will continue to make you aware of three potentially devastating ballot initiatives that have been certified for the November, 2010 ballot.  These are Prop 101, Amendment 60 and Amendment 61.  The Bell Policy Center has done an excellent analysis of these initiatives.  We talked with the folks at the Bell on this past Friday and the county-by-county analyses of Prop 101 are coming soon, as well as the detailed analysis of Amendment 60.

 

Proposition 101 - dealing with income tax and vehicle registration fees.  The Bell has also begun analysis on a county-by-county basis.  Take a look - this is SCARY!

 

Amendment 60 - dealing with property taxes.

 

Amendment 61 - dealing with long-term debt and financing options available to local and state government.

State Treasurer Cary Kennedy has recently set up the "Tax Tracks" website. 

 

When you click on the link, it will take you to a screen that asks you to enter your Annual Adjusted Money Income (AMI).  The next screen will show you an approximation of the state taxes you paid and where the state spent those tax dollars.  It will also offer you an opportunity to show your preference for revenue and expenditure categories.  Pretty neat way to see where the money comes from and where it goes!

Many of you readers know Reeves Brown, the Executive Director of Club 20. For the past year or more, and working with a number of community leaders around the state, Reeves has facilitated meetings of leaders in order to help address some of the problems facing the state of Colorado.

 

The mission of Colorado's Future - Our mission is to build public trust and improve the processes of public policy decision-making in a way that will build a better Colorado.

 

 

EDCC will be actively tracking and lobbying on a number of bills this year.  As in past years, you will be able to click on EDCC Legislative Report to view a real-time update on those bills.  You can bookmark this link and go back to it anytime.