DENVER — Inflation and tightening monetary policy on the federal level are expected to cool Colorado’s economy in the coming months, according to quarterly economic and tax revenue forecasts by nonpartisan staff and the governor’s office presented to the legislature’s Joint Budget Committee on Tuesday.

Both forecasts predicted that Colorado will avoid a recession despite national chatter about the U.S. economy entering a major slump.

The big takeaway: State lawmakers are expected to have more money to fund government services in the coming years as revenue continues to exceed the Taxpayer’s Bill of Rights cap on government growth and spending, which is calculated through population growth and inflation. When the TABOR cap is exceeded, Coloradans get tax breaks and, if the excess is large enough, which it is expected to be for the foreseeable future, refund checks. 

Rep. Julie McCluskie, a Dillon Democrat and chair of the Joint Budget Committee, said she is cautiously optimistic.

“If I’ve learned anything through the pandemic and our recovery it’s that it is hard to predict what comes next,” she said. “So I do think we need to be prepared but I am hopeful that we are not going to see a recession. Fingers crossed.”

Read more at ColoradoSun.com.