The past five years have been difficult ones for the Colorado economy, but business owners and employees can be proud of their stubborn efforts to stand things back up. Spurred by a resurgence of business confidence following passage of Referendum C last fall, the state is finally realizing the fruits of recovery from the 2001-02 recession.
Personal income for Colorado residents grew by 1.8 percent during the first quarter of 2006, well above the 1.4 percent national average. The jump follows an earlier report showing that, after adjusting for inflation, Colorado’s gross state product rose 4.2 percent in 2005. The state generated a total of $216 billion in economic activity last year.
Business leaders such as Joe Blake, president of the Denver Metro Chamber of Commerce, believe such growth was a result of the optimism sparked when the state’s political leaders committed to Referendum C, the state’s 2005 fiscal reform measure. The additional revenue voters authorized by passing C last November will show up in the budget that kicks in this weekend (Saturday was the first day of the state’s new fiscal year).
Business, by its nature, is forward-looking. Investors’ spirits rose when they saw Referendum C would avoid the need to cut $365 million from higher education and human service programs vital to business growth.
Equally important, C’s passage allowed Colorado to pour $298 million into supplemental funding for transportation projects in the 2006-07 budget and put another $40 million into other construction needs, especially in higher education.
“Referendum C’s passage was a statement by the electorate that assured business that Colorado’s transportation network and higher education system would be able to meet their needs,” Blake said. “We saw a spike of activity of out-of-state businesses interested in relocating here when Referendum C passed.”
There are, as always, some troubling signs in the economic forecasts – notably the fear that rising gasoline prices may hurt the state’s tourism industry. But whether by good planning or just good luck, C’s passage also allowed the state to earmark $19 million this year to promote tourism, up from $5.5 million last year. That’s a prudent investment to buttress our tourism business.
Colorado was slow among the 50 states to see a business recovery, in part because of uncertainty over government resources. The voters settled the matter and now it is to everyone’s benefit to let the recovery take hold.
