The Governor's Office of State Planning and Budgeting (OSPB) announced last week state general fund revenue is projected to be $159.6 million higher in the current fiscal year than was forecast in September.
Under current law, the excess funds in the new revenue forecast will carry over into next year's budget and will be transferred to the State Education Fund.
This fund supports per-pupil funding in Colorado school districts.
Based on Gov. John Hickenlooper's budget request, the new available money for fiscal year 2013-14 is $142.7 million. The governor has indicated he would ask that the increased funds go to education, economic development, public health, safety and infrastructure.
"The housing market is finally showing a sustained rebound and consumers are continuing to spend," the budget office reports. "However, some activities are slowing, most notably business spending, manufacturing, and international trade. Colorado is among the top states in economic performance due to its favorable mix of industries and skilled and entrepreneurial population. Though unemployment remains a challenge, the state's economy appears to be further along in rebuilding from the Great Recession."
OSPB reports in the forecast that federal officials continue discussions regarding across-the-board tax increases and spending cuts that will occur under current federal law in 2013.
"This forecast assumes that there will be an eventual agreement that includes smaller tax increases and spending reductions than currently scheduled," according to the forecast. "A similar assumption has been incorporated into past forecasts as well. However, the lack of a satisfactory agreement presents a downside risk to the forecast."blog comments powered by Disqus