In December the Colorado Chamber of Commerce released the results of a commissioned third-party regulatory impact study that determined Colorado has the sixth highest number of business restrictions in the nation, with “nearly 45% of its 200,000 regulations being excessive or duplicative.” Formally titled, the “Regulation Impact Analysis Report 2024,” the study further concluded that, “for every 10% increase in state regulations, there is a direct loss in Colorado of 36,000 jobs and 9,000 firms,” which — shock and surprise — reduces productivity, slows economic growth, increases consumer costs, and disproportionately hurts low-income residents. The study contains loads of data that correlates high regulatory costs and burdens with a wide range of economic decline (see the Jan. 4, 2025, Summit Daily article for a more extensive summary).

As a follow-up, Gov. Jared Polis—who is adept at pro-business photo opportunities while advancing his liberal bona fides in preparation for a future senatorial or presidential run — held a press conference during which he sawed a stack of obsolete and rescinded regulations in half on a table saw. A stunt that, no doubt, violated some workplace safety regulations. While I applaud Gov. Polis for eliminating unnecessary regulations, and even give him kudos for the table saw stunt, the bigger problem is the underlying anti-business, anti-growth regulatory predisposition that is inherent in Colorado’s governing and bureaucratic culture.

It is not news that we live in a philosophically divided nation. Left-leaning expansive government advocates favor regulation laden approaches to remedy societal problems. Right-leaning free-market advocates favor less government intervention and lower taxes to foster broader economic prosperity.

Every state sits on a ticking time bomb of public employee pensions and other entitlement obligations.  States like California, Illinois, and New York also favor anti-business, anti-growth, heavily regulatory approaches, and impose high taxes to bail out fundamentally flawed economic policies. They are losing population and teetering on the edge of bankruptcy. Conversely, states like Idaho, Florida, and Utah have embraced less-regulatory, lower-tax, free market-oriented policies that result in positive economic growth. They are gaining population and are considerably more financially sound. Unfortunately, Colorado has chosen to follow the failing California model, which does not bode well for Colorado’s future.

The most regulated industries in Colorado include chemical manufacturing, petroleum products, and utilities, all with regulatory limitations increasing from 25% to 60% from 2020-23. More of a surprise, personal services have experienced 7,694 new regulations over the same period. This has broad cost implications for already expensive services from childcare to elder care. Utilities have seen a 46% increase in regulations over the same three-year period, which is one of the reasons why utility costs are so high. For those who say, “We don’t want those industries and their pollution anyway,” the top five most regulated industries face three to eight times more regulations in Colorado than the national median for their industry.

With Democrat control of every part of state government, and Summit County government too, don’t expect regulatory relief anytime soon. Just look at California.

The study explores the correlation between regulations and poverty. For every 10% increase in federal regulatory burden, there is a 2.5% increase in states’ poverty rates, and then add Colorado’s regulatory burden. From 1997-2015, the federal regulatory burden moved over 84,000 people below the poverty line. It has only gotten worse over the past four years.

Clearly, some rules and regulations are necessary and appropriate — and nobody is suggesting a return to the days of unlimited air and water pollution — but there needs to common sense limits on new regulations and taxes. Like the authors, I am a proponent of “sunset” provisions for regulations and taxes, which requires periodic review and public affirmation to keep them in place. Other states have capped the total number of regulations allowed, and elimination of two regulations for every new one added. The governor and every department director should be required to try and file business forms on their department’s respective websites.

However, the best solution is to elect people with business backgrounds. Our state legislature and agencies are full of activists and causers who have no clue how their laws and regulations impact a wide range of businesses and industries and raise everybody’s cost-of-living. Without reform, Colorado is speeding down the road to California.

Bruce Butler's column "Common Sense Conversations" publishes biweekly on Tuesdays in the Summit Daily News. Butler is a former mayor and council member in Silverthorne, where he has lived for 20 years. Contact him at butlerincolorado@gmail.com.