Weak real estate markets, high debt levels, bank failures and tight credit in Colorado will limit economic growth over the next few years, but the state will see more revenue as the economy slowly begins to pick up, says a report issued by state budget forecasters Friday.
Economists said that revenues for the current (2009-2010) fiscal year increased by nearly $230 Million relative to the last forecast in December, reflecting an increase in corporate income, personal income and sale-tax collections. This means that legislators will no longer have to focus on finding more ways to cut the budget for the current fiscal year.
Following the release of the report, for example, Democratic Senator Jack Pommer of Boulder told the Denver Business Journal he would likely scrap a budget-balancing bill he introduced to tax corporate salaries.
The state's chief economist warned, however, that the state will have to continue making budget cuts in future fiscal years as funding from the stimulus act dries out.
The report squared with a Brookings Institute report earlier this week, which predicted Rocky Mountain states' economic recoveries lagging behind the rest of the country.
READ THE REPORT BELOW: