Although Colorado’s economy continues to recover from recession, growth is lagging the nation and is expected to decelerate in the second half of 2010, state economists said in a forecast today.
“Growth will continue at modest rates over the next few years,” Chief Economist Natalie Mullis writes. “Once the expansion gains solid footing and banking and real estate problems are resolved, Colorado’s economy is expected to again outperform the nation.”
The FY 2009-10 General Fund budget is in balance. However, only $80.9 million, or 1.2 percent of General Fund appropriations, will be left in the reserve at the close of the year. In FY 2010-11, General Fund revenue will be suficient to fund the amount budgeted to be spent and about one third of the reserve required by law. Revenue will fall short of the required reserve by $175.7 million.
Read Mullis’ report below: