Colorado lawmakers learned Tuesday that the state’s economy is stronger than expected. That means they’ll have more money to spend in the 2015 budget.
Previously, the grumblings around the state capitol were that the revenue forecast would be lower than anticipated. Instead, it’s $61 million higher.
“Right now you have a lot of flexibility in the budget because revenues are growing,” said Natalie Mullis, the state’s non-partisan chief economist.
She says the recovery has been slow, but it’s picking up.
“2015 is our year; in 2015 we’re going to have a full mature economic expansion.”
March Revenue Forecast: good news! OSPB revises FY 14-15 GF forecast upwards, $61 M over Dec forecast. We'll balance to that amt. #coleg
— Pat Steadman (@PatSteadman) March 18, 2014
The improved forecast will leave lawmakers with $75 million extra in the general fund budget that pays for roads, schools and prisons. It won't make a big impact though says Representative Cheri Gerou (R-Evergreen), who sits on the joint budget committee.
“We’re essentially flat, and normally in a regular legislative year that wouldn’t be an issue,” said Gerou.
The dynamics are different because dozens of Democratic measures are waiting to be funded.
“We’re going into an election year, and the Democrats in the majority, about half of the bills they have out there waiting will be killed because we just don’t have the money," said Gerou.
Joint budget committee vice-chair Senator Pat Steadman (D-Denver) echoed the sentiment.
“People went kind of hog wild on introducing bills with big fiscal notes this year and we’ll have to figure out how to prioritize once we get the budget set,” said Steadman.
Democrats will debate whether to put the extra money into K-12 schools or disaster recovery among other areas. Lawmakers were hoping for an even higher forecast.
“We’ve not been able to spend for a long time and suddenly it looked like the opportunity was there to do some things you’d been wanting to do,” said senate budget committee member Mary Hodge (D-Brighton).
The Governor’s Office of State Planning and Budgeting says Colorado’s economy is one of the best in the nation, but growth around the state remains uneven. The house will soon take up the budget.
