EXECUTIVE UPDATE / August 3, 2004

Transportation Infrastructure is a growing concern among local employers. The most frequent weakness cited by primary employers visited by Business Retention and Expansion Visit (BREV) teams is growing traffic congestion. (Kevin McKinnon-City of Colorado Springs-kmckinnon@springsgov.com)
The Rural Transportation Authority Initiative appears to be headed for the ballot this fall. It would address a portion of the estimated $1.3 million in unfunded transportation system maintenance and construction needs of the region (not including state highways in the region). (Mike Kazmierski-EDC-mjkazmierski@csedc.org)
The contract to review the feasibility study for a Colorado Springs Convention Center has been let. Final results will be available in November. Any significant improvement in Colorado Springs' air service will require significant increases in visitors to the community, according to Colorado Springs Aviation Director Mark Earle. A convention center could contribute to such increases, as could increasing the number of events and attractions in the community that will draw visitors. (Tom James - jamest@tjames-law.com)
Greenspan says more spending and hiring will help economy. The economy will benefit next year if businesses shed their unusual reluctance to spend and hire, Alan Greenspan, the chairman of the Federal Reserve, told Congress last week.
The Colorado economy continues to improve. The improvement will be reflected in higher tax receipts for the State of Colorado according to official revenue forecasts published in June, 2004. Since the last forecast in March, both Legislative Council and OSPB increased their estimate of state General Fund, from $71 to $106 million for the state fiscal year that ended on June 30, 2004. Additional state revenues reduce the TABOR "ratchet-down" effect somewhat. Legislative Council now projects a reduction in the anticipated state structural General Fund deficit - from $425.9 million to $370.8 million for FY 05-06 and FY 06-07 combined. If no constitutional reform addressing TABOR and Amendment 23 is adopted this November, the state will refund $129.6 million to taxpayers and will need to reduce General Fund expenditures by $215.8 million to balance the budget in the next budget cycle. Further, in FY 06-07, if no constitutional reform is enacted, an additional $155 million will have to be reduced from the General Fund budget to balance the state budget while taxpayers would receive an estimated refund of $406 million.

What this means for the growing crisis in funding for essential economic infrastructure such as higher education and transportation is not yet completely clear. It seems apparent that lawmakers and the Governor recognize the seriousness of the problem. But, as seen in recent news accounts, there is currently no agreement in sight that would generate the legislative votes necessary to refer the question to the voters this fall.
Venture Capital Funding on Upswing. Venture capital investment in upstart companies continues to pick up speed, with deals nationally breaking $5 billion for the third consecutive quarter, according to two new surveys.
Prime International Business Opportunities in Colorado, according to a recent Colorado Office of International Trade study, include products and services in the following markets: energy and environment, software and communications, nanotechnology, flexible manufacturing, and product distribution. The study also identified networking partnership opportunities in foreign countries. The Colorado Springs Office of International Affairs, which provides international trade assistance, can re reached at internationalaffairs@cscc.org.
Arts and Culture Highlight: The remarkable Chihuly Chandelier in the Fine Arts Center, unveiled on June 11, puts the FAC in highly select company. Chihuly Chandeliers are now on display in many of the worlds finest museums, including the Victoria and Albert Museum in London. Chihuly's fourteen piece exhibition throughout Venice drew immense crowds in 1996. www.csfineartscenter.org
Sponsorship opportunities are still available for Celebrate Technology, an event to recognize Colorado companies and individuals for their accomplishments in technological enterprise. The event will take place Friday, October 8, 2004, at 6:00 p.m., and features speaker Guy Kawasaki, one of the individuals responsible for the success of the Macintosh computer. For sponsorship information contact Linda Christopherson, lmchristopherson@earthlink.net, or visit www.celebratetechnology.org.