State economists were in an optimistic mood Thursday. It鈥檚 a mood the even non-economists can share; Colorado鈥檚 economy is performing better than the rest of the nation.
The immediate result is lawmakers will have more money to spend in next year鈥檚 budget than originally anticipated. The Governor鈥檚 office is coming up with proposals on how to spend the roughly $150 million additional dollars.
鈥淲e鈥檒l probably add to our K-12 and higher education request, public health and safety issues in addition to mental health, other infrastructure things and economic development,鈥� said Governor Hickenlooper鈥檚 budget director Henry Sobanet.
Those ideas will be the starting point of budget talks. It鈥檚 ultimately up to state lawmakers to craft and approve the final budget.
鈥淓veryone always thinks if you have more money it鈥檚 actually easier, but I argue it鈥檚 harder because we don鈥檛 have enough money to restore all the cuts that have been made over the last couple of years,鈥� said Democratic Speaker of the House .
鈥淎nd everyone sees that money and they want that money for what they see as the most important thing,鈥�
This is the first time in years that lawmakers are able to begin restoring programs that were cut during the .
鈥淚t鈥檚 not a surplus, it鈥檚 the money you have available to increase spending. It鈥檚 not a surplus because it hasn鈥檛 been adjusted for inflation or other legislative priorities,鈥� said Natalie Mullis, the legislature鈥檚 non-partisan Chief Economist.
Mullis says the state鈥檚 economy is poised for a strong recovery next year. That means people will have more cash to spend, the housing market should improve, and jobs and wages will be higher. She also says rural Colorado is performing well.
Colorado is not out of the financial woods yet. Both Mullis and budget director Henry Sobanet note that that the is slowing overall recovery and going over the would plunge the state into recession.
Sobanet says the March revenue forecast will paint a clearer picture. It鈥檒l be the last economic snapshot before lawmakers write and approve next year鈥檚 budget.
