DENVER - On December 19, 2024, the Governor’s Office of State Planning and Budget released its quarterly economic forecast. 

“Today’s forecast shows that Colorado’s economy remains strong, with excellent wage growth, slowing housing costs, and healthy reserves. While this economic forecast shows potential challenges could emerge, Colorado’s budget environment remains tight, and the reality is that the legislature must make difficult decisions to deliver a balanced budget that makes Colorado safer, keeps our economy strong, and maintains solid reserves to protect Colorado’s future,” said Governor Polis. 

FY 2024-25 and FY 2025-26 General Fund forecasts are revised up $369.4 million and $278.3 million respectively. Under this forecast, the General Fund ending balance is projected to be $1,137.9 million above the statutory reserve level in FY 2023-24 and shows a $73.9 million surplus above the statutory reserve in FY 25-26. 

Cash funds are expected to grow by 4.7 percent in FY 2024-25 and then increase 4.3 percent in FY 2025-26. Compared with the September forecast, cash funds are revised down $8.7 million in FY 2024-25 and up $17.4 million in FY 2025-26, as lower expected severance revenue largely offsets upward revisions to miscellaneous revenue. 

View the forecast, slides, and supplemental materials.