This week the Chamber’s Legislative Policy Committee heard directly from Henry Sobanet, the director of the Governor’s Office of State Planning and Budgeting on the most recent economic outlook for the state.
Published last Friday, the report shows scaled-back growth of the economy. It is estimated state revenue will grow just 1.5 percent this fiscal year, compared to about 9 percent last year. If the figures hold true, Coloradans will not receive tax refunds as a result of the Taxpayer’s Bill of Rights (TABOR). Created in 1992, TABOR limits government spending of revenues that exceed a growth cap determined by inflation and population growth. Any revenues above that cap are refunded to taxpayers. But, to complicate matters, another law requires that when the state issues a TABOR refund, general fund dollars for transportation projects are cut in half or eliminated completely.
With no refund anticipated for 2015-16, $200 million will be put toward transportation. But, if revenues rebound next year, transportation could receive half that sum in 2016-17. Yesterday, the Denver Business Journal reported that the Joint Budget Committee has allocated at $150 million for transportation in the 2016-17 fiscal year. It’s anticipated the budget will be introduced at the legislature on Monday.
Low oil prices and the contraction of the oil and gas industry, as well as a “tepid” stock market and global economic pressures are impacting the state revenue growth. However, the fact that the economy is still growing, even as one industry faces challenges, is a testament to the importance of a diversified economy, said Chamber President and CEO Kelly Brough.
As conversations at the Capitol continue to center on the hospital provider fee and its impact on the state general fund, we feel that now is the best time to reauthorize the provider fee as an enterprise fund because there are no TABOR refunds at stake.
If we don’t act now, we will face this issue again when the economy, and general fund revenue, begin to grow. For the 2016-17 fiscal year, a rebound and growth of 6.4 percent is anticipated. We are continuing to urge action at the Capitol. To learn more or get involved, click here.
Chamber Testifies in Support of High Education Standards
Chamber Public Affairs Director Jennifer Jones provided testimony on behalf of the Chamber and Colorado Succeeds at the Senate Education Committee Thursday, urging the committee to vote in opposition to Senate Bill 5, which would eliminate English language arts and math assessments.
The Chamber has supported reducing the amount of time students spend taking tests, but the foundation of a homegrown, strong workforce in Colorado must include statewide learning benchmarks and testing that focuses on measurable outcomes. Studies show that success in ninth grade is highly predictive of high school graduation rates. The Chamber stands by preserving ninth grade tests because it allows us to assess how our kids are doing as they enter high school, establish a baseline for growth and provide valuable comparative information.
The Chamber is focused on education issues because to succeed economically, Colorado must be able to produce enough highly skilled workers to meet the demands of our businesses. We know that in just four years, 74 percent of our jobs will require some post-secondary education. We must ensure our kids get to and through education beyond high school and are ready for Colorado’s jobs of today and our future. Without these measures through assessments, we’re challenged to do so.
The Chamber is taking positions on bills weekly during the legislative session. Click here to see all the bills the Chamber has taken positions on this session.