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State revenue forecast improves by $227.9 million for FY 2012-13

DENVER — Monday, March 18, 2013 — The Governor’s Office of State Planning and Budgeting (OSPB) announced today state general fund revenue is projected to be $227.9 million higher in the current fiscal year than was forecast in December.
 

 

For FY 2013-14, the forecast is $256.1 million higher than the prior projection. The increase in the revenue forecast is due to continued better-than-expected growth in individual and corporate income tax revenue.

 

Under current law, the excess funds in the new revenue forecast for the current fiscal year will be transferred to the State Education Fund. This fund supports per-pupil funding in Colorado school districts.

 

Under current law, the excess funds in the new revenue forecast for the current fiscal year will be transferred to the State Education Fund. This fund supports per-pupil funding in Colorado school districts.

 

OSPB reports in the forecast that growth may slow next year.

 

“While economic activity at the national level continues to be modest and uneven, Colorado has many attributes necessary for success in the post-Great Recession economy, fostering its position among the top states in economic performance,” according to the forecast. “Economic growth is expected to moderate in 2013 due to recent federal tax rate increases and budget reductions, the heightened uncertainty surrounding the federal debt level, and headwinds from the European economic and financial crisis.”

 

Click here for the full forecast report from the Governor’s Office of State Planning and Budgeting.

 

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About the State Education Fund
Article IX, Section 17, of the Colorado Constitution, enacted by the voters at the November 2000 election as Amendment 23, creates the State Education Fund. It diverts an amount equal to one-third of 1 percent of Colorado taxable income to the fund. It also required the General Assembly to increase the statewide base per pupil funding amount under the school finance act and total state funding for categorical programs by at least the rate of inflation plus one percentage point through FY 2010-11, and by at least the rate of inflation thereafter in the current budget year and beyond. Money in the State Education Fund may be used to meet these minimum education funding requirements. In addition, the General Assembly may appropriate money from the State Education Fund for a variety of other education-related purposes as specified in the state Constitution. However, Amendment 23 no longer imposes a “maintenance of effort” spending requirement from the General Fund, under which appropriations have to grow by at least 5 percent if certain conditions are met. This requirement expired after FY 2010-11.