March Budget Forecast Released
The recent revenue forecasts released by Legislative Council and the Office of State Planning and Budgeting earlier this week show about $300 million more in general fund revenue for the 2018-2019 fiscal year than previously anticipated in the December forecast. Both forecasts cite rising wages and consumer spending, anticipated benefits of the new federal tax law and rising gas prices and production as reasons for their new forecasts. However, economists note that there are risks the economy is facing that could negatively affect these forecasts including rising political instability, rising interest rates, unresolved trade negotiations and the potential for an economic downturn.
The governor has requested that the Joint Budget Committee allocate $500 million in one-time money in budget year 2018-2019 to the Colorado Department of Transportation, which currently has a roughly $9 billion project list that lacks funding. Gov. Hickenlooper also requested to set aside $200 million to education with another $90 million to be spent on other pressing issues as decided by the legislature. The challenge Colorado faces is the sheer number of competing priorities as we have significant needs in transportation, K-12 and higher education, corrections and health care. The Chamber continues to be focused on securing funds for transportation, as our state has critical needs that have gone unmet for years.
Concern for Lack of Retirement Savings
The Chamber recognizes that the lack of retirement savings is an economic issue for Colorado. The growth of our state depends in part on our aging population having sufficient income in retirement. Nearly half of all families in the U.S. have no retirement savings and this is likely to create additional burden on taxpayers as these employees reach retirement age.
And while we are joined with employers and lawmakers in our concern, House Bill 1298, a proposed retirement savings plan bill introduced last week, is not the solution. House Bill 1298 would create the Colorado Secure Savings Plan, a statewide retirement plan for the private sector. It would require companies that do not already offer a qualified retirement plan for their employees to participate in the Colorado Secure Savings Plan and would create a board of trustees to manage the fund.
A blanket mandate such as the one in this bill will create additional burden and significant costs on the smallest of businesses, which represent 90 percent of all Colorado employers. Furthermore, as we work to solve a $32 billion unfunded liability in Colorado’s pension plan, which threatens our state’s credit rating, creating yet another state retirement liability is not the right way forward.
Skills Gap Survey
Colorado Succeeds, a partner of the Chamber whose mission is to connect business leaders to the education system and legislative processes, is conducting a survey regarding the skills gaps companies may face in Colorado. Results will be shared with all 2018 gubernatorial candidates at an upcoming forum event with the purpose of explaining to all the candidates how employers view the skills gap and what strategies are needed to improve Colorado’s schools. The survey will be available through Friday, March 29. Email Kelly Caufield or call 571-235-1338 if you have questions.
New Policy Positions
The Chamber weighed in on eight bills this week.
The Chamber supports:
- Career Development Success Program Expansion (HB18-1266)
- Public Utilities Commission Evaluation of Energy Storage Systems (HB18-1270)
- Financing Rural Broadband Deployment (SB18-002)
- Freestanding Emergency Departments Required Consumer Notices (SB18-146)
The Chamber opposes:
- Apprentice Utilization in Public Projects (HB18-1278)
- Exempt Local Government School Districts Forced Pooling (HB18-1289)
- Colorado Secure Savings Plan (HB18-1298)
Repeal Late Vehicle Registration Fee (SB18-196)