If you are involved with the inner workings of the Colorado General Assembly, the middle of March doesn't just bring the first day of spring; it signals the debate and the wrangling over the upcoming fiscal year's budget - known as the Long Bill.

After a number of years with declining or flat revenue forecast projections, both the Governor's Office of State Planning and Budgeting and the Legislative Council, the economists for the General Assembly, project an increase in the tax revenue flowing into the state.  Henry Sobanet, the Governor's budget director, noted that Colorado will have $1.1 billion (13%) more to spend in FY 14-15 than in the previous year, which, after increases for growth and inflation, yields a $593.5 million (6.8%) increase above the amount required in the reserve.   

The sale of recreational marijuana, and the taxes paid by those who sell and purchase the product, is to be thanked for a portion of those increased revenue expectations.  In fact, there is concern for some that should those collections continue to rise the state would reach its TABOR (Taxpayers Bill of Rights) cap, requiring that any dollars over a set amount be refunded back to citizens instead of being utilized for the regulation, enforcement and youth education outlined as part of the taxing ballot measure passed by Colorado voters last November.  Some legislators are considering referring a measure to the voters that would remedy that issue by removing the language, which would trigger the refund in this instance.

More broadly, with more resources come more programs to fund.  Some are long-standing programs that were cut during the economic downturn and that are seeking a restoration that will bring them back to previous funding levels, such as K-12 education; others are expansions of existing efforts to reach larger markets or populations, most often in the human services sector; and some are new endeavors.  Dollars for capital construction are also in the mix, as the need to address the health and safety of the state's buildings is also necessary.  With regard to transportation infrastructure, it appears state funding for roadways will flow for the first time in recent memory in FY 2015-16.      

The challenge for the Joint Budget Committee, a bipartisan group of members from both legislative bodies - and then both chambers of the General Assembly - is to thread the budget needle carefully.  If all goes according to plan, the state's guiding financial document will be on its way to the Governor for his consideration by April.

If you have questions about the state budget, or any other issue of interest, please do not hesitate to contact me at Tamra@coloradoconcern.com.