Unemployment is high. Pay raises, for those lucky enough to be getting them, are low.
The economy is barely bubbling back to life, yet utility and public transportation rates have soared in the past few years in Colorado, making us wonder if those in charge are tone deaf to the pressures faced by working families.
A story in The Sunday Denver Post by reporter Colleen O’Connor documented some of those increases, which include an average 15 percent retail electricity increase from Xcel between 2009 and 2010.
Denver Water’s rates for consumers in the city rose 17 percent between 2007 and 2009. In the suburbs, they were as much as 20 percent higher. And the Regional Transportation District has upped its fares for local rides to $2.25 in 2011 from $1.50 in 2007.
Separately, these may not seem like weighty increases, but together they have the potential to pack a wallop, particularly for those laboring to stay above the poverty level.
Beyond making life hard for those at the low end of the wage scale, such increases have the potential to sap an economic recovery.
People have to pay their utility bills. So, if you have less money, what do you do? You cut back on items you think you can do without.
Consumer spending is a significant driver in the nation’s economy, and when people have less cash to spread around, it tends to cause financial pain.
Ideally, utilities and transportation agencies would have kept in mind the cumulative effect their increases would have on individuals and the greater economy. Knowing the impact the higher rates are having, we would hope that going forward the utilities would consider putting off any non-essential projects that could cause rates to spike again.
Most Coloradans found ways to trim back when the recession hit. We would hope utilities and government agencies, large and small, would do the same.
Deferring big projects, which come with big pricetags, for a year or two would enable people to stabilize their personal finances before having to absorb rate or fare increases.
According to statistics from the U.S. Bureau of Labor Statistics, the Consumer Price Index for the Front Range increased 1.7 percent from the first half of 2009 to the first half of 2010. Government analysts attributed the increase in the Denver-Boulder-Greeley area to higher energy costs.
Yet, there are signs of hope among economists looking at Colorado’s financial landscape. Employment numbers edged up slightly in September, but no one is predicting great gains any time soon.
“Colorado’s economy remains relatively flat,” Don Mares, the state Department of Labor’s executive director, said recently. “We have not seen the economic jumpstart that everyone is eager to see and these last several months have underscored the fact that little activity is an expected part of a slow recovery process.”
As the economy slowly comes back to life, we hope those who control rates and fares will be sensitive to the financial pain they can cause when they boost costs. No one wants to see the economic recovery stalled any further by price increases that could be delayed while Coloradans get back on their feet financially.
