1. The Common Sense Policy Roundtable is
a non-partisan informational resource for
public policy makers and future leaders.
CSPR researches and promotes common sense
solutions for economic issues in Colorado.
COMMON
SENSE
Policy Roundtable
1. Colorado Economic Development 15. Colorado Legislative Council,
Databook, 2010-2011 “CLCS Memo: Revenue Impact
of House Bills 10-1189 through
2. Colorado Economic Development
10-1200,” Jan. 26, 2010
Databook, 2010-2011
16. C. Slevin, “Colorado Lawmakers
3. E. Sealover, “State Spending
Look at Tax Changes”, Associated
on Tourism a Hot Potato,” The
Press, Apr. 8, 2009
Rocky Mountain News, January
12, 2009 17. “The Colorado Business Personal
Property Tax,” Colorado
4. Colorado Economic Development
Association of Commerce and
Databook, 2010-2011
Industry, Jul. 1999
5. Colo. Dept. of Agriculture,
18. Interim Committee on Economic
“A Snapshot of Colorado’s
Development – Business Personal
Agriculture Industry,” Mar. 19,
Property Tax, “2005 Report to the
2009
General Assembly,” Nov. 2004
6. Colorado Economic Development
19. “Consequences,” The Pueblo
Databook, 2010-2011
Chieftain, Feb.12, 2010
7. Ibid
20. J. Kohler, “Feds, Colorado hash
8. Colorado Economic Development out agreement on oil and gas,”
Databook Associated Press, Jul. 1, 2009
9. Fact Sheet, Colorado Bioscience 21. “2009 Global Petroleum Survey,”
Association http://www. The Fraser Institute, Jun. 24, 2009
cobioscience.com/factsheet.php http://www.reuters.com/article/
10. IHS Global Insight, 2009 pressRelease/idUS87148+24-Jun-
Economic Analysis 2009+BW20090624
11. S. Simon, “Colorado Tightens 22. J. Wolf, “Ritter Signs Bill
Reins on Energy Extraction,” Protecting Homeowners Right
The Wall Street Journal, Dec. 23, to Sue,” Associated Press, Mar.
2008 2007
12. ANGA Study with data from 23. T. Hoover, “Bill on Malpractice-
Bureau of Labor Statistics and suit Cap Returns,” The Denver
U.S. Bureau of Economic Post, Apr. 6, 2009
Analysis, Sept. 2009 24. Colorado Economic Development
13. Colorado Legislative Council, Databook, 2010-2011
“CLCS Memo: Fee Bills 2009
Session,” Jul. 29, 2009
14. Colorado Legislative Council,
“CLCS Memo: 2009 Legislation
that Affects General Fund
Revenue,” Jul. 13, 2009

2. COMMON
SENSE
Policy Roundtable
The Colorado Economy
Potential for growth, challenges and solutions
z A World Class Workforce. Colorado has a highly
educated workforce. 35.6% of Coloradans are college graduates, the
second highest percentage in the nation. And Colorado ranks third in
scientists/engineers as a percent of labor force.1
z Tourism. Visitors are drawn to Colorado by world class skiing,
spectacular parks, rugged public lands and a host of other cultural and
recreational attractions. Denver International Airport — the 5th busiest
airport in the U.S. and the 10th busiest in the world — served over 50
million passengers last year, and has shown increased passenger traffic in
every month of 2010. Colorado’s travel and tourism industry generated
nearly $14 billion in 2009,2 and for every dollar the state invests in
tourism promoting itself, it receives $6 to $13 in return.3
z Manufacturing. The manufacturing sector employs over
130,000 workers in Colorado, and Colorado exports to world markets
reached nearly $8 billion in 2008. High tech products make up about
half of Colorado’s total exports.4
z Agriculture. Colorado agriculture contributes more than $20
billion to the state economy annually, supporting more than 100,000
jobs. Colorado also hosts some of the nation’s largest processed food
companies, and wine tourism in the state generates another $50
million each year in economic activity.5
z Aerospace. Colorado is home to four military commands with
over 28,000 personnel, and more than 300 aerospace companies. These
companies directly employ more than 25,000, and another 167,000
statewide.6
z High-Tech. 86 of every 1,000 private sector workers in
Colorado is classified as high-tech, giving Colorado the third highest
concentration of high-tech workers. In total, there are more than
166,000 high-tech workers employed in our state.7
z Bioscience / Biotechnology. Bioscience is a growing
industry sector in Colorado, accounting for some 17,000 direct jobs
with average salaries of more than $60,000. The sector generates
around $400 million in total taxes, and has attracted around $600
million in venture capital investment in the past five years.8 9
z Energy. The energy sector, historically a backbone of Colorado’s
economy, supports over 137,000 jobs in Colorado10 with average
salaries topping $60,000 per year.11 The natural gas industry represents
7.3% of Colorado’s economy.12

3. “Colorado has great economic potential. Higher
taxes and excessive regulation take capital away
from growing business and prevent job creation.”
Headwinds for economic growth
9 Tax and Fee Increases. In 2009 the Legislature
approved more than $1 billion in new tax and fee
increases13 14, and in 2010 they approved $300 million
in sales tax hikes on everything from candy and soda to
e-commerce and agricultural products.15
9 sales Tax HIkes. Legislative leaders have proposed
additional tax hikes as well, calling for the elimination of
all but three16 of the state’s many job sustaining sales tax
exemptions — a staggering tax hike of more than $1 billion
that would raise taxes on everything from eyeglasses and
hearing aids to gasoline and groceries.
9 The state’s BusIness Personal ProPerTy Tax
(BPPT) sucks hundreds of millions of dollars out of the
Colorado economy each year. The tax has made Colorado
a less attractive place to do business for many years17 and
hampers economic growth.18
9 One of the tax hikes approved by the Legislature this year
raIsed sales Taxes on energy used for industrial
and manufacturing purposes. The more than $100 million
tax hike will hit a number of employers hard, including one
company in Pueblo that will pay $2 million in higher taxes
as a result of the change.19
9 State regulators implemented new oIl and gas
drIllIng rules in 2009 that have been described as the
most far-reaching and burdensome in the nation,20 earning
Colorado a reputation as the worst state in the nation for
energy development and investment,21 and prompting a
Huge declIne In drIllIng acTIvITy.
9 Legislators made it easIer For TrIal lawyers To
sue HomeBuIlders in 2007,22 driving up construction
costs in an already battered housing sector.
9 State policymakers have also signaled their intention to
consIder raIsIng caPs on malPracTIce
lawsuITs by as much as 60 percent.23 The measure
promises to further increase health care costs for employers
and consumers at a time they can least afford it.

4. “Incentivize businesses to grow
COMMON responsibly through tax cuts and
SENSE
Policy Roundtable
thoughtful regulation to create jobs
and increase government revenues.”
The way ahead
# Incentivize large-scale business investment in
manufacturing, aerospace and other high-wage sectors by
phasing out the Business Personal Property Tax.
# Improve the state commitment to biotechnology
and biosciences by building on a 2008 package that
provided some $26 million assistance for Colorado
start-up companies24 and research institutions seeking to
commercialize new technology.
# Revisit and revise the new oil and gas regulations that have
contributed to a steeper decline for the natural gas industry
in Colorado than in nearby states.
# Review Colorado’s regulatory environment, and support
sensible expansion of Colorado’s coal production.
# Prioritize infrastructure investment which coordinates
government and free enterprise initiatives to ensure a
cutting edge multi-model transportation system — an
essential component to a thriving economy.
# Grow the tourism industry by investing in tourism
promotion, advertising Colorado as a site for conventions
and meetings for out of state businesses and civic groups,
and encouraging Colorado-based groups to stay in
Colorado for their events.
# Protect employers and consumers by enhancing Colorado’s
protections against junk lawsuits.
ƒ Require plaintiffs in medical malpractice suits to
demonstrate a bona fide medical and legal issue before
a lawsuit can proceed to the cost-intensive trial phase.
ƒ Reinstate the Construction Defect Reforms affirmed by
the voters earlier this decade.
# Expand access to affordable health care choices by lifting
restrictions on the purchase of health insurance across state lines.
# Ensure a world-class workforce by prioritizing investment
in our higher education system with an emphasis on
research and trades programs.
# Review effectiveness of state services, and look for free
enterprise alternatives.