Inflation / Denver-Boulder-Greeley Consumer Price Index

Program Contacts:

Cynthia Thayer
303.866.5601
cynthia.thayer@state.co.us

Jarrod Biggs
303.866.4493
jarrod.biggs@state.co.us

Division of Local Government
1313 Sherman Street, Room 521
Denver, Colorado 80203
Fax: 303.866.4819

Overview:

Inflation (also known as the Consumer Price Index or CPI) is a component for the calculation of two constitutional limits on local government budgets. Article X, Section 20 (otherwise known as TABOR), defines inflation to mean the percentage change in the United States Bureau of Labor Statistics Consumer Price Index (CPI) for Denver-Boulder (now Denver-Boulder-Greeley).

The actual Denver-Boulder-Greeley CPI figure for each year is not released until near the end of February. Since this is too late for budgetary purposes, current year forecasts are made available quarterly. Both the Governor's Office of State Planning and Budgeting (OSPB) and the Legislative Council prepare forecasts that are released in late March, June, September, and December.

Before the release of the CPI, many local officials use the forecasts to calculate the limitations on "fiscal year spending" and property tax revenue in Article X, Section 20 (7)(b) and (7)(c) respectively.After its release, the actual CPI should be used to re-calculate the limits, which can then be compared to the amounts approved in the budget document. The CPI release in late February is the first opportunity for local governments to determine whether their budgeted amounts in property tax revenues and "fiscal year spending" may exceed the limitations.

For questions regarding the use of the CPI (inflation) figure for revenue limit calculations please call DOLA at 303-866-2156.