DENVER-
Gov. Bill Ritter’s budget office on Tuesday predicted revenue from individual income tax returns in the current fiscal year would be 6.6 percent higher than the year before.
The previous forecast, issued in December, predicted only 2.7 percent increase.
The good news was tempered, however, by a report that December sales tax revenue fell $19 million because of holiday snow storms.
Todd Saliman, the governor’s budget director, said the five-year forecast is also positive.
“Colorado’s economy continues to strengthen in concert with broader national economic conditions. Although some sectors are faring better than others, aggregate indicators like the unemployment rate, retail trade and wage growth have continued at positive, sustainable levels,” Saliman said.
Total general fund revenues for the current budget year that ends June 30 are forecast to be $7.4 billion, up $165 million from the December forecast.
Under the provisions of Referendum C, a measure approved by voters giving up tax surplus refunds for five years to stabilize the state budget, the state is expected to keep $5.35 billion through 2009-10.
The refunds are expected to resume in 2011, with a projected refund of $30.8 million.
