EXECUTIVE UPDATE /March 14, 2005

Colorado is in a State of Fiscal Crisis. Over the next five years, the Legislature’s Joint Budget Committee has calculated a shortfall of almost $7 Billion in meeting demonstrated public need for maintenance and construction of roads, highways and public buildings, public health, and the higher education needed to keep Colorado-raised citizens from becoming an economic underclass. Regrettably, Colorado law now requires that, while the impact of that $7B shortfall would be felt by Colorado’s citizens, over $3B in checks would be written in “tax refunds” to people who may or may not have contributed to the calculated “surplus”. The amount that the shortfall exceeds the funding made available through the budget fix proposal that emerges from the legislature will become a problem for future leaders, and the generation they serve, to solve. The state legislature is wrestling with optional solutions to this growing crisis. For additional details go to qualitycommunity.info.
The Quality Community Group has joined the City Council and others in opposing Ballot Issue 200 in the upcoming City Election. The Quality Community Group (The EDC, HBA, Chamber, and PPAR) opposes Issue 200 (The Marvin Proposal) because it would amend the City Charter to prohibit the City from “Planning, Building, Funding, or Financing a Convention Center” without voter approval. Voter approval is already required by TABOR which mandates a vote of the people for any tax increase. The proposed amendment would also bind the hands of all future councils prohibiting them from supporting a convention center in any way, even if at some point in the future building a convention center were to be the right thing to do for our community. Please help to stop this effort by Voting “NO” on Issue 200. For more information on this issue contact Sarah Jack at Sbrittainjack@aol.com.
The $284 billion transportation bill that passed the U.S. House on March 10 includes $2.8 billion in road funding for Colorado, 40 percent more than the last time road money was doled out seven years ago. The U.S. Senate must weigh in on the bill.
Colorado Springs was recently ranked in the top 10 for business growth during the past five years by Sales Genie ® Survey of U.S. Businesses. The survey includes a report citing the number of businesses and the corresponding business growth/decline for the top 100 MSA's in the U.S. biz.yahoo.com
FEBRUARY HIRING BEST IN FOUR MONTHS. U.S. employers created 262,000 jobs in February, beating forecasts for the first time in several months. There was solid hiring in construction, factories, gov't, professional services and retail. (CEO Newsline)
ECONOMIC OPTIMISM FALLS SHARPLY. The IBD/TIPP Economic Optimism Index fell 1.8 points in March to 53, a 9-month low. Readings over 50 signal optimism. (Investor's Business Daily)
SMALL FIRMS WERE THE ECONOMY'S SALVATION IN 2001. Small business came to the USA's rescue in the last recession, providing a tiny employment cushion when big business was slashing thousands of jobs, new government data show. (USA Today)
Among other forecasts, Kiplinger Editors predict 3.75% growth in the GDP, 2.5 million new jobs, and inflation of 2.5% in ’05. Overall, a pretty healthy picture is emerging for this year. Businesses will increase spending by a solid 9%. Recent spending on equipment and IT is at levels last seen during the 1990s’ boom years. And, good news for those small businesses that helped sustain the economy during the recent downturn: minimum wage is unlikely to change in the near future. (Source: Kiplinger Editors)
Reducing Highway Noise. EDC, Colorado College, the University of Denver and the Colorado Technical University are hosting a workshop on March 23rd titled “Highway Surfaces That Are Neighborhood Friendly”. The workshop is designed to provide the latest information available on the use of Asphalt Rubber from members of the academic community, industry experts and department of transportation staff. The workshop will focus on the growing use of Asphalt Rubber in cold weather climates, the noise mitigation affects of Asphalt Rubber and its potential life-cycle cost savings. For more information go to www.coloradosprings.org/Doc/invite.doc and register before March 18th. For questions contact Mike Kazmierski at mjkazmierski@csedc.org.
Save the Date for the EDC Gala. EDC's Annual Gala is scheduled for Saturday, April 23, at The Broadmoor. Invitations will be mailed soon.