6 numbers to know about Colorado's wobbly fiscal outlook

Colorado's economy is at a precarious juncture, with forecasts predicting minimal growth and heightened recession risks. Legislative budget committee chair Jeff Bridges emphasized the chaos from Washington as a crucial factor influencing the state's economic outlook. The governor's budget office warned of a potential $1 billion budget shortfall if Congress passes the House version of a reconciliation bill. The chance of recession has escalated to 50%, up from 40% in March, reflecting growing economic uncertainty. Additionally, Colorado's unemployment rate has reached 4.

8%, now above the national average of 4. 2%, marking a significant shift as it is the first sustained period in 25 years that this has occurred. Legislative analysts noted an 800-person reduction in the federal workforce in Colorado, contributing to the state's economic challenges. Economists also forecast a $698 million budget deficit for the 2025-26 fiscal year if spending trends continue. This situation underscores the pressing need for state lawmakers to address the fiscal implications of federal policies.