The Office of State Planning & Budgeting and the Colorado Legislative Council Staff released their budget revenue forecasts today. Both forecasts indicate that Colorado’s economy is recovering slowly and neither report indicate much change from the September forecast. Revenues are forecast to increase slightly, providing enough General Fund revenue to fully fund budgeted appropriations in FY 2010-11, but revenue will be $137.0 million short of the amount needed to fully fund the 4.0 percent reserve required by law. The loss of one-time federal stimulus funds, particularly $67.2 million in Medicaid funds, may increase this amount to $204.2 million. FY2011-2012 continues to present significant fiscal challenges, with estimates up to a $1 billion shortfall due to increased enrollment in state programs and reduced federal stimulus funds. Read the OSPB and CLCS reports.
