According to the Legislative Council economists, Colorado’s economy will continue to “muddle along” and gradually improve over this fiscal year. After two years of job losses, “the state’s private sector started adding jobs in June and July,” though there is a lag between increases in employment and state revenue collections.
The table below shows the anticipated collections in Colorado’s primary GF revenue sources.
Legislative Council September General Fund Revenue Estimate by Source - dollars in millions
The General Fund revenues are very dependent on individual income tax and sales tax collections. Corporate income tax collections are a smaller – but more volatile – revenue source. Please note – the anticipated increases in individual income and sales taxes in FY 2010-11 are off of reduced bases from FY 2009-10.
Impact of Amendment 60/Proposition 101 on State Budget
The Legislative Council economists indicated that the passage of either Amendment 60 or Proposition 101 would impact the current year shortfall. From the Legislative Council “Bluebook”, if property taxes are cut and the state is required to backfill as per Amendment 60, “the state will have to decrease spending and services in other areas, increase fees for services, or some combination of both.” Also, the Bluebook anticipates a state revenue loss of $744 million in 2011 if Proposition 101 passes.
