Economic and Revenue Forecast Impacts State Budget
Kate Watkins, chief economist for the Colorado Legislative Council, presented the Council’s economic and revenue forecast to the Chamber’s Legislative Policy Committee this week following the release of their March Revenue Forecast. Both the Legislative Council and the Governor’s Office of State Planning and Budgeting, who also released a March forecast, lowered projections by about $200 million from their respective December forecasts because of indicators of slower economic growth than previously expected.
While both consumers and investors are cautiously optimistic and wages are rising, consumer activity and investing has slowed. Global economic activity is also experiencing a slowdown for many reasons, including tariffs and trade tensions.
What this means for Colorado, and the current legislative session, is that there is less money than previously expected for the myriad of proposals being considered. Gov. Polis’ full-day kindergarten plan has been allocated $185 million, down from the $250 million initially requested. Each chamber has been allocated about $20 million for special projects, which doesn’t go far when proposals such as the Family and Medical Leave Insurance Program (FAMLI), which needs $50 million just to begin ramping up, are being considered. Senate Bill 188, which would create FAMLI, was heard in Senate Finance on March 19, but was laid over in committee due to too many concerns about the bill by committee members. It likely won’t be heard until the long bill makes it through both the House and the Senate and legislators have a better understanding of how they plan to allocate their limited extra funds. You can read our testimony here.
Oil and Gas: Don’t Stop Production
On Monday, Chamber President and CEO Kelly Brough testified against Senate Bill 181 in the House Finance Committee. This is the second time the Chamber has submitted testimony on this bill, which imposes new regulations on the oil and gas industry, including increased local governmental control, changing the composition and mission of the Colorado Oil and Gas Conservation Commission (COGCC) and directing the Colorado Air Quality Control Commission (AQCC) to adopt stricter emissions rules.
Although there are numerous amendments the Chamber would like to see to ensure the industry continues to thrive in Colorado, Brough focused on two main issues. First, that the industry be allowed to continue to operate while regulations are put in place. Adams County issued a six-month moratorium on new permits because they were concerned about “a potential flood of new permit applications,” going against the will of voters who unequivocally expressed their support of the industry when they rejected Proposition 112 in November. These temporary bans only create further uncertainty and should not be allowed to be put in place while regulations are being worked out.
Second, Brough asked that the standard for local regulations be “reasonable and necessary.” Currently, only some of the regulations proposed have this standard and it should be extended to all to encourage collaboration. The bill passed House Appropriations on Wednesday and was referred to the Committee of the Whole but has not been scheduled for a vote. Read our testimony.
Census on the Horizon
The Chamber supported House Bill 1239, which would allocated $12 million for grants aimed at ensuring an accurate count of the state population in the 2020 Census. An accurate count is critical for ensuring Colorado receives adequate federal funding and appropriate congressional representation in Washington.
Follow the Session
As always, Chamber staff will continue working on your behalf, analyzing and weighing in on legislation that can impact your business. We list all our bill positions online. Stay in touch with us by checking our website and sharing with us your concerns as the session progresses.
