DENVER — Tuesday, June 20, 2017 — The Governor’s Office of State Planning and Budgeting (OSPB) today released its quarterly economic and revenue forecast.
General Fund revenue is increasing a modest 3.4 percent in FY 2016-17 and is forecast to increase at a stronger rate of 6.7 percent in FY 2017-18. Although sales taxes and individual income taxes are recovering from the oil and gas downturn and weaker economic growth during 2015 and 2016, General Fund revenue growth overall this fiscal year was weighed down by a few factors. Notably, it appears some taxpayers delayed income from investment gains in anticipation of federal tax changes. Also, the continued decline in corporate income tax revenue impacted General Fund revenue growth. However, these factors will not reduce growth in FY 2017-18, which will allow for the stronger rate of increase.
“Colorado reached two significant milestones this year - the number one economy in the country and the state’s lowest unemployment on record,” said Governor John Hickenlooper. “Our challenge now is maintaining this success and that requires addressing tight labor and affordable housing conditions.”
Economic activity in Colorado overall remains positive. Colorado’s technology-related sectors remain robust, and continue to fuel much of the state’s growth. Less populated areas continue to experience lower job and income growth than along the Front Range. Furthermore, regions of the state that are dependent on agriculture continue to struggle with subdued farm income and continued low commodity prices.