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Colorado Economic and Fiscal Outlook
Lauren Larson - Director Luke Teater - Deputy Director
December 20, 2019
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The forecast was revised down slightly from September
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Colorado Economic and Fiscal Outlook December 20, 2019 Lauren - - PowerPoint PPT Presentation
Colorado Economic and Fiscal Outlook December 20, 2019 Lauren - - PowerPoint PPT Presentation
Colorado Economic and Fiscal Outlook December 20, 2019 Lauren Larson - Director Luke Teater - Deputy Director 1 The forecast was revised down slightly from September 2 General Fund Revenue Forecast +2.9% 3 Economic indicators suggest
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General Fund Revenue Forecast
+2.9%
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Economic indicators suggest continued economic growth
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Consumer Expectations Remain Strong
Source: University of Michigan - Surveys of Consumers
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Manufacturing Remains Weak
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Source: Institute for Supply Management
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Colorado Wage Growth Continues to Exceed Inflation
Sources: U.S. Bureau of Labor Statistics, Organization for Economic Co-operation and Development
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The forecast is conservative and comparable to independent benchmarks
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OSPB Forecast Is Conservative
GDP - National
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OSPB Forecast Is Comparable
Personal Income - Colorado
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Budget growth is limited by the TABOR Cap
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General Fund Capped at Half of Last Year’s Growth
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Operating Pressures Crowd out Investment
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Important to Find Base Savings
Fiscal Responsibility Package
- ($238) million Total Fund
- ($73) million General Fund
- 3 categories:
a. Reduce under-utilized resources and reversions b. Consolidate or streamline for budget efficiency and impact c. Reallocate spending to a more appropriate funding source
$238 Million Saved
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Budget Sensitive to Changes in Cash Funds
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Budget Sensitive to TABOR Surplus Level
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Questions?
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