Colorado

Colorado

CAR DIRECTORS APPROVE CHANGES TO POLITICAL STRUCTURE

By a 155-15 vote, CAR Directors approved the creation of the Political Survival Committee, a 17-member group of Realtors from throughout the State to create and implement the Association’s political strategies, allocate PSF dollars and approve local association fund requests. Local associations will retain 10 percent of PSF funds raised and 30 percent of the existing $10 member special assessment for issues. Local associations can request more if needed. The creation of the PSC was based on a recommendation by a PAG (presidential advisory committee) and legal consultants specializing in Colorado campaign law. A transition team (former CAR presidents Kay Watson and Chris McElroy) will assist President Amy Dorsey in appointing PSC members. More information will be forthcoming.

LINKS TO INFORMATION ON NEW STATE LAWS:

Visit http://coloradorealtors.com/car_gov_affairs_main.asp http://coloradorealtors.com/car_gov_affairs_main.asp for information about bills passed during the 2009 legislative session and related CREC forms changes, including HB-1091 (requiring carbon monoxide protectors) and a clarification concerning HB-1191 (Foreclosure Prevention Act). Most bills take effect on July 1, 2009.

STATE BUDGET UPDATE

Earlier this week, the Legislative Council and the Office of State Planning and Budgeting (OSPB) presented their economic forecasts to the Joint Budget Committee. Both forecasts predict further budget shortfalls in Colorado, and General Fund revenues will not support current General Fund appropriations for Fiscal Years 2008-09 and 2009-10. Legislative Council's economists predict a $249 million shortfall for FY 2008-09, and OSPB anticipates that figure to be $256 million. Senate Bill 09-279 allows for the transfer of funds to cover existing General Fund obligations for FY 2008-09, which must be repaid July 1, 2009, so the budget shortfall will be addressed in the 2009-10 fiscal year. Although General Fund revenue is expected to increase 6.8 percent in FY 2010-11, revenue available for spending the General Fund will decrease 2.4 percent because several one-time sources of revenue will either be reduced or will no longer be available.

Overall, $873 million will need to be cut from the budget over the next 24 months. These figures come in on top of the $1.2 billion that legislators cut from the FY 2008-09 and FY 2009-10 budgets during the legislative session.

Economic Recovery:

According to the economic forecast, Colorado's economy is expected to begin gradually improving toward the end of 2009 and during 2010, but the recovery is anticipated to be a very long and slow process. The state's is expected to lose 85,000 jobs during 2009, a 3.6 percent drop from 2008, bringing the unemployment rate to 8.3 percent for the year. Job losses are expected to begin to moderate in the last part of 2009; however, the state's unemployment rate is expected to continue increasing to 9.6 percent in 2010.

Overall, the OSPB forecast is approximately $500 million more optimistic than the Legislative Council forecast, due to differing predictions on how high the unemployment rate will reach and when it will begin to recover. (CAR)