Colorado

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

Published

6 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.

Stay up-to-date with Colorado Politics by signing up for our weekly newsletter, The Spot.

Source link

Click to comment

Colorado

Toyota Game Recap: 12/20/2024 | Colorado Avalanche

Published

2 hours ago

December 21, 2024

Press Room

Toyota Game Recap: 12/20/2024 | Colorado Avalanche

ColoradoAvalanche.com is the official Web site of the Colorado Avalanche. Colorado Avalanche and ColoradoAvalanche.com are trademarks of Colorado Avalanche, LLC. NHL, the NHL Shield, the word mark and image of the Stanley Cup and NHL Conference logos are registered trademarks of the National Hockey League. All NHL logos and marks and NHL team logos and marks as well as all other proprietary materials depicted herein are the property of the NHL and the respective NHL teams and may not be reproduced without the prior written consent of NHL Enterprises, L.P. Copyright © 1999-2024 Colorado Avalanche Hockey Team, Inc. and the National Hockey League. All Rights Reserved. NHL Stadium Series name and logo are trademarks of the National Hockey League.

Source link

Colorado

Aurora, Colorado, police say home invasion 'without question' Tren de Aragua gang activity

Published

10 hours ago

December 20, 2024

Press Room

Aurora, Colorado, police say home invasion 'without question' Tren de Aragua gang activity

Aurora Police have confirmed that several members of the violent Venezuelan gang Tren de Aragua (TdA) were involved in an “incredibly violent” armed home invasion and kidnapping that left two victims seriously injured in an apartment complex this week.

“I will say without question, in my opinion, that this is TdA activity. Some of these individuals have been identified as TdA gang members,” Aurora Police Chief Todd Chamberlain said. “It’s something that we are working very close with our partners in HSI [Homeland Security Investigations] and DHS [Homeland Security] to establish their relationship with gangs.”

Chamberlain said authorities have little way of confirming that a suspect is a member of TdA since gang members do not typically broadcast their affiliation.

“It is a real challenge to try to say, ‘Hey, 100%, you are a gang member,’” he said.

TREN DE ARAGUA GANG MEMBERS ARRESTED IN NYC APARTMENT NEXT TO DAYCARE FACILITY

Aurora Police Chief Todd Chamberlain speaks to the media during a press conference Tuesday, Dec. 17, 2024. (Derek Shook for Fox News Digital)

Chamberlain said it was not a “big step” for him to identify them as members of the notorious Venezuelan gang.

“But when you look at the circumstances of this, when you look at the events of this, when you look at the individuals involved in this, when you look at the veracity and the violence involved in this, again, it is not a big step for me to say that they are TdA gang members,” he said.

The gang members allegedly forced their way into a couple’s apartment at the Edge at Lowry Apartments in the Denver suburbs and bound, beat, stabbed and kidnapped the victims, leaving them hospitalized. The perpetrators also allegedly stole jewelry from the victims.

SANCTUARY CITY DENVER SPENDING A WHOPPING $356 MILLION ON MIGRANTS: STUDY

While the department cannot yet confirm whether all 19 of the suspects detained in the incident are TdA members, Chamberlain said he could categorically confirm that several are part of the gang that has been terrorizing Aurora residents in recent months.

WATCH:

Chamberlain said one of the detained TdA members was also involved in the violent apartment takeover in Aurora earlier this year.

According to Chamberlain, this was not an isolated incident. He said the TdA members and their affiliates have regularly mistreated the couple and were extorting them for $500 every two weeks. He believes the couple were not the only victims being intimidated and extorted by the gang members.

Chamberlain also said Aurora Police are fully cooperating with ICE, DHS and Homeland Security Investigations to determine the identities and potential gang affiliation of those involved in the incident.

Aurora Police investigate an alleged home invasion which is possibly connected to the migrant gang, Tren de Aragua.

Aurora Police prepare to search in Aurora, Colo., Tuesday, Dec. 17, 2024. (Fox News Digital)

A total of 19 suspects were detained for questioning, three of whom have since been released and eight of whom are now in ICE custody. He said eight are still under investigation.

“Those pending charges range from everything from second-degree kidnaping, aggravated robbery, first-degree assault, extortion and burglary,” he said.

Police have not released the names of the 16 arrested individuals.

Apartment buildings at 12th and Dallas in Aurora, Colo., Tuesday, Dec. 17, 2024. (Fox News Digital)

The police chief reiterated that authorities did not conduct a “mass sweep” for the suspects, but instead went door to door to thoroughly investigate all parties involved.

CLICK HERE TO GET THE FOX NEWS APP

During a press conference, Chamberlain emphasized that Aurora Police would respond to calls and help any victim in trouble “regardless of immigration status.”

Peter Pinedo is a politics writer for Fox News Digital.

Source link