Colorado’s revenue shortfall for the current fiscal year grew to $601 million. Previous estimates of the shortfall were $560 million.
While economic forecasters say the recession is over in the state, they warn that recovery will take time. Natalie Mullis, the legislature’s chief economist, said Colorado gained 2,800 jobs in October and November after losing 5% of its jobs during the recession.
Mullis also said the unemployment fund will probably run out of money early next year, forcing borrowing from the federal government.
Colorado still has a stable outlook on its AA general obligation rating from Standard & Poor’s and Aa3 from Moody’s Investors Service.