Lt. Gov. Barbara O'Brien today announced an unprecedented $80 million for distribution to cities, counties and schools to offset impacts from energy development, strengthen local economies and improve the livability of Colorado communities.
Some 509 cities, counties and school districts will receive a record $80.4 million from the Local Government Severance Tax Fund and Federal Mineral Lease Fund.
"These funds come at a critical time and will help local agencies and schools maintain quality services," Lt. Gov. O'Brien said. "These direct distribution awards will allow local officials to decide how best to invest these funds and make the biggest difference in their communities."
The Colorado Department of Local Affairs oversees the distribution of funds derived from energy and mineral extraction. Senate Bill 08-218 and House Bill 08-1083 authorized a new method and formula to determine the direct distribution of energy impact dollars. These new factors, coupled with an increase in revenue generated by the industry, resulted in a record-high distribution amount.
"With families, businesses, communities and schools struggling in this tough economy, I am proud that we were able to protect these direct distribution funds even when closing a $1.8 billion budget shortfall over the past few months," Gov. Ritter said. "These funds will help lead Colorado forward by strengthening our economy, assisting schools, saving and creating jobs and improving the quality of life in our communities."
Prior to the passage of SB08-218 and HB08-1083, direct distribution was based on the number of employees in the energy impacted communities in which they resided. Under these new laws, other factors are also considered, including: drilling permits, production, employee residence, as well as, for sub-county distribution, population and highway user miles. Last year's distribution amounted to $24.7 million from the Severance Tax Fund and $8 million from the Federal Mineral Lease Fund.
"I am thrilled to see local communities receive this funding today," said Sen. Gail Schwartz, co-sponsor of SB08-218. "These communities have all been impacted by oil and gas activity and have been responsible for generating these funds. Thanks to Senate Bill 218, a significant, extensive, bipartisan effort, this funding will go a long way in helping communities."
With the new formula and increased production levels, the Severance Tax Fund provided $44.5 million and the Federal Mineral Lease Fund generated $35.9 million.
"One of the aims of this bi-partisan bill was to support impacted communities when extraction activity was down," said Secretary of State Bernie Buescher, a former House member and co-sponsor of SB 218. "Clearly, these dollars couldn't have come at a better time."
Susan Kirkpatrick, executive director of the Department of Local Affairs said, "We know the importance this distribution means for communities. These funds help communities address the impacts of development, processing, or energy conversion on their infrastructure and capacity to improve the livability of their communities."
For a report listing distributions by local government recipients go to:
