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Lawmakers await revenue forecast

Published March 19, 2007 at midnight

Colorado lawmakers will have a clearer picture on Tuesday of how much money is available for road projects and building maintenance and construction.

That's when the governor's budget director and legislative economists will release the state's quarterly revenue forecast.

Lawmakers who sit on the Capitol Development Committee - which oversees everything from roof repairs for a human services office to the construction of a university building - are asking for $100 million for next fiscal year.

"Whether or not we can do that depends on what we learn Tuesday," said Rep. Bernie Buescher, D-Grand Junction, who sits on the Joint Budget Committee.

In addition, the forecast will provide the latest revenue projections related to Referendum C, which voters approved in 2005 to help the state recover from a recession.

By law, the general fund's state budget can grow only 6 percent from one year to the next. Revenues above that amount are handled in two ways:

First, they spill over into a road fund. Once that reaches its cap - about $231 million - the money goes into another fund, where two-thirds is earmarked for roads and one third for capital projects.

Lawmakers learned last December that revenues were coming in at such a pace that they were able to fund next year's budget, the 6 percent growth and the first road fund.

The question that should be answered Tuesday is how much money will be available for roads and buildings.

"I support money going into roads and capital construction." said Sen. Greg Brophy, R-Wray, but added that he is concerned about what he called "shell games" to try to get around the 6 percent budget growth limit.

"I want to limit state government, not stop it altogether," he said.

Tuesday marks the first revenue forecast since Democratic Gov. Bill Ritter took office in January.

Revenue forecasting is required by law but has never been an exact science.

Consider September 2000, when Republicans controlled the legislature and Republican Gov. Bill Owens was in office: Owens' budget officer and the legislature's nonpartisan economists predicted the state surplus over the next six years could total $8 billion.

Instead, the economy began tanking the following year. The surplus became a deficit and lawmakers eventually made nearly $1 billion in cuts.

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