May 18, 2010 07:23 PM UTC

Local Economies Showing Broad Recovery

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• by: Colorado Pols

A few noteworthy reports today from around the state–Colorado Springs Gazette:

Colorado Springs sales tax collections rose for a sixth consecutive month in April, raising hopes among city officials and economists that the local economy is recovering more strongly than expected from its worst downturn in nearly 20 years.

The $9.15 million collected last month by the city’s Financial and Administrative Services Department was up 5.46 percent from a year earlier. The April collections reflect consumer and business purchases made in March. The gains so far this year come in comparison with some of the weakest months ever for city sales tax collections, which at this point last year were down 8.48 percent from the previous year…

Fred Crowley, senior economist for the Southern Colorado Economic Forum, said the recent increases in sales tax collections show the local economy has been improving; the gains are stronger than the 3 percent to 4 percent gains he had forecast for this year.

And a pair of reports from the Summit Daily News:

There’s light at the end of the tunnel, finally. Frisco’s March sales tax collection numbers are up. The town reported a 4.43 percent growth for the month, or just under $24,000. Year-to-date, the town is still 1.01 percent down over last year’s first quarter.

“It’s the first growth since March of 2008,” said Frisco’s revenue specialist Chad Most.

Frisco was 0.7 percent down over February of 2009, or just over $3,000 down. January 2010 revenues were down 7.13 percent, and January 2009 collections were down 12.87 percent from 2008.

This is good news for the town, since its goal for the year it to remain flat with 2009 and keep its budget as is. With continued growth, this may now be possible.

Dillon’s sales tax collection in January 2010 was up 1.5 percent over January 2009, or $5,000. And the town’s revenues for December 2009 were up 2.77 percent, with an overall $14,900 increase over 2008.

For March, McDonnell reported collections being up in both the restaurants, lodging and retail sectors…

In February, the Town of Silverthorne’s sales tax revenues showed an uptick for the first time in 17 months. The town’s sales tax revenues in February 2010 were 4.84 percent higher than in February 2009.

Sales tax revenue collected by local communities represent one of the clearest (and quickest) indicators available of the health of an underlying local economy. These three reports are from today, but you can find similar recent stories from all over the state as the economy continues to stabilize: a recovery that may well be outpacing forecasts.

In addition to being really good news for policymakers at every level from town councils to the General Assembly, at some point (hasn’t happened yet that we’ve seen) continuing good news about the economy is going to make it tough for opportunist candidates to declare to low-information audiences that “the only part of the economy growing is the government.” Sooner or later somebody in that audience who knows better is going to put their hand up.