Democratic members of the Joint Budget Committee today released the following statements after the Legislative Council staff and the Office of State Planning and Budgeting delivered the June economic forecasts.
“Today’s forecast shows that our economy is making a bold recovery with unemployment rates falling to pre-pandemic levels, nearly all sectors thriving, and Colorado’s employment gains outpacing the nation,” said JBC Chair Rep. Julie McCluskie, D-Dillon. “I’m proud of the fiscally responsible decisions we made to power the Colorado comeback and position our state to compete. We know that even with our strong recovery, families are struggling with high gas prices and the rising cost of living. Our Colorado Cashback Plan will send every Coloradan a refund check in September to help with everyday necessities, which thanks to our economic growth, will now be at least $750 for single filers and $1,500 for joint filers. From cutting property taxes to creating free universal preschool, we passed dozens of laws this year to help Coloradans and small businesses hold on to more of their hard-earned money.”
“Thanks to smart, responsible budgeting, Colorado’s economic recovery is leading the way, which is good news for families that are dealing with surging prices,” said JBC Vice Chair Sen. Chris Hansen, D-Denver. “Even better, Democrats have worked hard to ensure Colorado remains on a sound fiscal path, and today’s forecast means families will get even more money back - at least $750 for single filers and $1,500 for joint filers - when they receive their taxpayer relief checks this fall. I’m proud of the work we’ve done to invest in our communities, support Colorado’s economy, and move our state forward.”
The unemployment rate continued to fall in Colorado to 3.5 percent in May, led mostly by gains in the food and accommodations sectors. The state exceeds pre-pandemic jobs by 35,000 and continues to outpace the rest of the country. Inflationary pressures, however, will impact near term budget priorities and state departments. Geopolitical disruption and monetary policy decisions at the federal level in response to inflation were also presented as risks to the forecast. Extraordinary state and federal action to help Coloradans weather the disruption of the pandemic ensured a stronger and faster recovery than previous recessions.
During the 2022 legislative session, Democrats passed the Colorado Cashback Plan to send rebate checks to Coloradans in September to help people with rising costs. Under the new law, the state will refund approximately 85 percent of FY 2021-2022 surplus TABOR revenue through the Colorado Cashback Plan in checks of equal amounts for single filers and double that amount for joint filers. Due to Colorado’s strong recovery, the forecasts now estimate that the checks will be $750 for single filers and $1,500 for joint filers.
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