State & Local Government Policy, Business and Technology

Colorado boosts savings to $730 million, may need more

The Hastings Tribune: Thanks to a boost from a recent tobacco industry settlement, Colorado plans to sock away an extra $90 million next year in the state's reserves. But by one credit rating agency's analysis, it's still woefully unprepared for the next economic downturn.

In the waning days of the 2018 legislative session, lawmakers voted to increase the state's reserves to 7.25 percent of general fund spending, or an estimated $730 million for the fiscal year that starts July 1.

That's up from 6.5 percent this fiscal year, and more than triple the 2 percent reserve the state had on hand at the depths of the Great Recession. And yet it still might not be nearly enough to avoid deep cuts to public services the next time the economy tanks.

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