The Joint Budget Committee received the December economic forecast this morning. Although the near-term outlook for Colorado’s economy is positive, the increased economic growth will continue but at a more moderate pace.
According to the Legislative Council, this surplus means that the JBC will enter into discussions about the upcoming 19/20 budget, with 1.12 billion to spend or save in the General Fund than what was budgeted for FY18-19. The Office of State Planning and Budgeting (OSPB) forecast projected a slightly lower growth rate.
As with the September forecast, there are still a number of uncertainties that could impact Colorado’s revenue outlook such as the changes to federal tax law and the out-of-state sales tax collections.
The Wayfair decision is projected to add $20 million in additional general fund revenue for the current year and $90 million the following year when the implementation is fully phased and all out of state retailers are in compliance.
Both revenue forecasts project increases in the TABOR surpluses compared to their September forecast for FY18-19 and FY19-20.
The next revenue forecasts will come out in March and those are important forecasts as they will determine the amount of the various budget triggers.
The full budget documents can be found at: