Colorado

As new tax credits reroute money from budget, lawmakers brace for less certain budget growth

Published

5 months ago

June 21, 2024

As new tax credits reroute money from budget, lawmakers brace for less certain budget growth

Even as Colorado enacts drastic changes to its tax policy, economic forecasters still expect the state to hit the constitutional cap on revenue collections in coming years.

But, the state could flirt with falling below the cap, set by the Taxpayer’s Bill of Rights, for the first time in half a decade during the adjustment period. The TABOR cap grows based on population growth and inflation, and money collected over it needs to be refunded to taxpayers.

Greg Sobetski, the chief economist for the Legislative Council Staff, didn’t raise any red flags during a forecast Thursday but acknowledged “a new set of budget circumstances” for state officials to navigate after years of explosive growth in state revenues. That growth resulted in billions of dollars being refunded to taxpayers in recent years, most notably through direct payments in fall 2022 and through tax returns this year.

Lawmakers this past legislative session, however, passed more than 30 bills either adjusting or creating new tax credits, according to a tally by the governor’s office. They include expansions to the earned income tax credit for the lowest-income Coloradans, senior housing tax credits and, if certain economic triggers are met, a new credit potentially worth thousands of dollars to families.

Collectively, the credits will reroute hundreds of millions of dollars — if not more than a billion — per year in coming years from state coffers, though it still ends up Coloradans’ wallets. In the next fiscal year, which begins July 1, the credits could also push state revenues below the TABOR cap. Economists for the legislative branch and governor’s office both expect revenue to remain above the cap, but Sobetskis’s office, in particular, warned a routine margin of error that comes with predicting the future could drop that below the TABOR cap.

Legislative forecasters expect $1.4 billion in revenue collected above the revenue cap this fiscal year, which ends July 1, will need to be refunded. They expect it to drop to about $328 million next fiscal year before bouncing back to $1 billion-plus for the fiscal year that begins July 1, 2025.

“Even without a recession, you could end up in an environment, easily, within the realm of normal forecast error where state revenue is under the (TABOR) cap,” Sobetski said.

Forecasters for the governor’s office were more optimistic and still expect nearly $700 million in money over the cap will need to be refunded for the next fiscal year. Exact TABOR refunds for the upcoming tax year won’t be set for months still and depend on future forecasts.

Overall, forecasters expected continued economic growth and lower chances of a recession in the immediate term. But, economic activity is being stymied by persistently high interest rates. State economists had originally expected multiple interest rate cuts from the Federal Reserve this year, and when those didn’t materialize, they revised state economic growth expectations down, Sobetski said.

“Because we’re expecting interest rate cuts to happen later, we’re not expecting the interest rates to accelerate as quickly,” he said.

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Colorado

Warming and dry trend kicks off across Colorado

Published

3 mins ago

November 20, 2024

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Warming and dry trend kicks off across Colorado – CBS Colorado

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Colorado

Businesses in Arvada and surrounding Colorado areas see rise in smash-and-grab burglaries:

Published

8 hours ago

November 20, 2024

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Businesses in Arvada and surrounding Colorado areas see rise in smash-and-grab burglaries:

Law enforcement agencies are seeing a spike in smash-and-grab robberies across the northern part of the Denver metro area and up into Northern Colorado.

The Boulder County Sheriff’s Office is looking for what they are calling the Panda Bandit. Investigators say three young suspects, one dressed in a panda costume, burglarized a gas station in Superior and took vape products.

In Greeley, a clothing store is asking for help after thieves drove through their front window.

A similar burglary happened at Vibez Vape and Smoke shop in Arvada, where a stolen car caused thousands of dollars in damage.

“These guys they don’t give up,” employee Ashton Kimball said.

Surveillance cameras captured video of the crime. After the front steel door is smashed down by the stolen car, eight thieves pour into the store in the video.

“They wear gloves. They are masked up so you can’t really get any sort of description on them,” he said.

The video shows the hooded suspects clearing the shelves in a matter of seconds.

Unfortunately, Kimball says it’s now the fifth time they’ve been hit.

“We are all struggling in this economy as much as it is. We don’t need people making it harder on us,” he said.

The first time, thieves used a rock to break through the glass and the owner quickly reinforced the front using a metal gate. Thieves then used a crowbar to pry the gate open, so they added even more security including the steel door which covered the entire storefront.

“Now a full-on vehicle. What’s next? Are they going to start using guns? It has just escalated. Something needs to be done,” Kimball said.

According to Arvada police, in 2023 they had a total of 66 burglaries of the smash-and-grab type. So far, in 2024 they are at 67, with 24 since Sept. 1.

“They are taking whatever they can, and they are reselling it,” Arvada Police Detective Adam Ross said.

CBS Colorado’s Karen Morfitt interviews Arvada Detective Adam Ross.

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Ross says they are seeing similarities in cases beyond their jurisdiction, with thieves hitting in the early morning hours and almost all involve young suspects.

“Facebook Marketplace is a big place for vape products, but really a lot of these criminals are giving them to their friends and family who may not know that these products are stolen and then they are going to school and are actually selling those products at the school,” Ross said.

He says when they’re caught, they’re not deterred.

“They realize the consequence are a little bit soft in this area. I think it needs to be impactful really to hold these guys accountable,” he said.

For businesses like Vibez, it has means thousands of dollars in product lost, tens of thousands more spent cleaning up and whatever it will costs to add even more protection, which Kimball says they will do.

“We still got a couple more ideas. We are not throwing in the towel yet,” he said.

If you know anything about this crime or the others in the area you’re asked to call Arvada police.

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Colorado

Allegiant announces new flight services at Denver, Colorado Springs airports

Published

15 hours ago

November 19, 2024

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Allegiant announces new flight services at Denver, Colorado Springs airports

Allegiant Airlines will begin services out of Colorado Springs and new Denver routes next year, the airline announced Tuesday.

With 44 new routes being offered in cities throughout the U.S., this expansion is one of the largest in the airline’s history. The three new routes out of Denver will begin in May, and two service offerings out of the Colorado Springs Airport will begin in February.

Colorado Springs Airport was one of three new cities Allegiant Airlines will offer flights out of, alongside Gulf Shores International Airport in Alabama and Columbia Metropolitan Airport in South Carolina.

New routes at Colorado Springs Airport will be to Phoenix-Mesa Airport beginning Feb. 12, to Santa Ana via John Wayne Airport in Orange County starting on Feb. 13, and to Tampa, Florida, via St. Pete-Clearwater International Airport beginning Feb. 14.

Allegiant Airlines at Denver International Airport will also offer new routes beginning on May 22 to Idaho Falls Regional Airport in Idaho and Stockton Metropolitan Airport in California.

To celebrate this expansion, Allegiant Airlines, based out of Las Vegas, is offering one-way fares as low as $39 for some cities. The reduced fare rates will be offered until Wednesday for travel by July 25, 2025.

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Originally Published: November 19, 2024 at 4:51 PM MST

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