DENVER (AP) \u2014 High employment and consumer spending are keeping Colorado\u2019s economy strong, but government economists said Friday they\u2019re still watching for slower growth or even a recession in years ahead due to a weakening global economy and trade disputes.<\/p>\n
Both legislative and executive branch economists presented their quarterly economic forecasts to the Legislature\u2019s Joint Budget Committee, charged with crafting the state\u2019s annual budget.<\/p>\n
Colorado Politics reported<\/a> that legislative analysts expect growth to slow in a few years and that current growth is restrained by a tight labor market. Uncertainties over U.S. trade policy and global slowdowns also are factors, they said.<\/p>\n \u201cWe\u2019re not forecasting a recession, but risks are elevated,\u201d said economist Meredith Moon.<\/p>\n Gov. Jared Polis\u2019 Office of State Planning and Budgeting estimated that general fund revenue grew by 7.3% in the fiscal year that ended June 30 and would grow 4.1% in fiscal year 2019-20, which began July 1.<\/p>\n State revenues are expected to exceed spending limits set by the constitutional Taxpayer\u2019s Bill of Rights by $428 million in 2018-19, by $348 million in 2019-20, and by $552 million the following fiscal year, the office said. The legislative forecast put the 2019-20 surplus at $428 million.<\/p>\n Under TABOR, the 2018-19 surplus is to be refunded by reimbursing municipalities for the state\u2019s senior homestead property tax exemption and by reductions in the state income tax.<\/p>\n TABOR sets an annual income limit that can trigger tax refunds based on a formula that involves population and inflation. Critics say that limit has hurt education and transportation investment. Supporters credit it for the state\u2019s strong economy.<\/p>\n In November, voters will decide whether to allow the state to keep excess revenues permanently. Proposition CC was referred to the ballot by the Democrat-controlled Legislature. A companion measure would direct the state to spend excess revenue on education and roads.<\/p>\n ___<\/p>\n Information from: The Gazette, http:\/\/www.gazette.com<\/a><\/p>\n