Colorado continues to be a state of great innovation, invention, and entrepreneurship. We hold enviable positions in venture capital investments, new company formation, and college-educated people. Still, in the sixth edition of Toward a More Competitive Colorado, the Metro Denver Economic Development Corp. sees a continuation of trends that, if unchecked, will lead to a weaker Colorado economy.
There is some good news. Colorado continues to be a center of innovation and invention. Our local companies in combination with federal laboratories and research universities continue to attract investments and intellectual capital that creates new products and services in a competitive global economy.
Colorado ranks fourth nationally in the creation of new companies and third-highest in venture capital investments per capita. As a state we rank second in Small Business Innovation Research grants — a valuable measure of inventions in key industries such as aerospace, bioscience and cleantech.
Our state taxes remain among the lowest in the nation. Colorado has the lowest income tax rate of any state that has an income tax; second-lowest in residential property taxes; and the lowest state sales tax of any state that has a sales tax. (Five states have no sales tax.)
State falling behind each year
In 2007 we voiced our concern that Colorado’s competitive position in many areas was weakening and, if unchecked, could lead to a markedly different future for our children and grandchildren.
In the 2010 study we regret to report continued deterioration in crucial components necessary for a growing and healthy economy. These are what we call the pillars of the economy: education, transportation and health care.
For example, over the course of eight years, Colorado’s high school graduation rates have declined each year. While Colorado has never been in the top 25 states in graduation rates, the state has now dropped to 29th.
Higher education funding per student is 47th in the nation. The cost of college for the average Colorado family has increased from 15th-lowest to 18th-highest.
Personal income growth has dropped steadily since 2000, dropping from seventh to 15th.
Over 50 percent of Colorado’s roads are now in poor condition.
We are seeing cracks in an economy that was the envy of the nation. In the ensuing years the drumbeat has grown louder and louder.
Living off past investments
Colorado appears to be surviving on its past investments. Yet none of these challenges is insurmountable, unlike those of many other states who will spend years digging out of this recession and remaking outmoded economies.
We can rightfully brag that Colorado is the second-most-educated state. But all that brain power doesn’t make a bit of difference if we don’t use it to address these challenges today.
Now we need to use every bit of intelligence we have to chart a course for the future we want. We know this won’t be easy and we don’t pretend to have the answers, but we are committed to Colorado and to creating a thriving economy today and in our future. There is room for all of us at the table as we look to new solutions. We don’t stand on formality — everyone matters in this discussion.
Kelly Brough is president and chief executive of the Denver Metro Chamber of Commerce.
Tom Clark is executive vice president of the Metro Denver Economic Development Corp.
