Highlights from the Revenue Forecast:
· Based on improved income tax collections since the previous forecast, assumed to be the result of timely tax filings in order to receive federal stimulus checks, FY 2007-08 General Fund revenue is anticipated to increase $25.8 million over the March forecast, to $7.8214 billion.
· Greater inflation, unemployment and reduced disposable income are anticipated as a result of increased fuel costs and low residential vacancy rates for rentable properties. However, because inflation is also anticipated to increase personal income, the current forecast assumes only minor reductions in General Fund revenues beginning in FY 2009-10.
· The consensus forecast for severance taxes conducted with Legislative Council Staff reflects significant increases in revenue, beginning in FY 2007-08. These revenue increases are the result of substantial growth in hub prices for oil and natural gas and the improved pipeline capacity for exporting oil and gas from
· The forecast shows transportation funding through SB 97-1 and HB 1310 transfers totaling $818.3 million for the five-year forecast period, after receiving $394.8 million in FY 2006-07.
· Under the provisions of Referendum C, the state is projected to retain $6.4 billion from fiscal 2005-06 through 2009-10. This represents a $160 million increase over the March forecast figures and is largely due to increases in cash fund revenues from severance and increased fees from regulated industries. A TABOR refund is no longer expected during the forecast period.
Highlights from the Economic Forecast:
· The forecasts for most
· While recent unemployment rates are anticipated to yield an unemployment rate of 4.7 in 2008,