On March 19th the Legislative Council (nonpartisan research staff of the CO General Assembly) released the latest economic and revenue forecast for Colorado. Staff reported that the economy continues to gain strength. The Fiscal Year 2011-12 General Fund budget is in balance, and an estimated $256 million left in the General Fund at the end of the year above the required reserve. This is $108 million higher than the amount expected in December. Click here to read the report.
The budget-balancing package is expected to be introduced in the House next week. Part of the proposed budget for FY 12-13 is the Senior Homestead Exemption, which exempts 50 percent of the first $200,000 of a home’s assessed value. Voters approved the tax break in 2000, but the amendment allows the legislature to zero out the tax break if necessary. Lawmakers have elected to zero out the tax break in all but four years since it was passed. However, in light of the latest revenue forecast, the Joint Budget Committee said the state revenues are sufficient to restore the Exemption. To get the benefit, a senior must be at least 65 years old and have lived in their home for the last 10 years.
