The Great Recession played havoc with the budgets of state governments. Colorado was no exception. In late December, the Colorado Legislative Council released its quarterly economic update that shows the impact the Great Recession has had on the revenue streams for the state government.
Sales Tax Revenue accounts for about one-fourth of the Gross General Fund. Sales Tax Revenue for the Fiscal Year (FY) 2013 is projected to exceed revenue for FY 2008 (not adjusted for inflation). [Note: The State Fiscal Year is July 1st through June 30th.]
It is projected that Net Individual Income Tax for the FY 2012 will exceed FY 2008 (not adjusted for inflation). This tax accounts for about two-thirds of Gross General Fund Revenue.
It is projected that General Fund Revenue for FY 2012 will be similar to FY 2008 (not adjusted for inflation). Total revenue was $7.743 billion in 2008. In 2012 it was 7.737 billion. In 2013 it is currently projected to be $8.026 billion. On an inflation adjusted basis, 2013 remains well below the 2008 total.
The Colorado State budget is much like the pocketbook of many Colorado residents. Over the past five years they have had to deal with wages that either declined or remained flat while experiencing expenses that escalated every year.
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