NOTE THE STATE ADMITTED A $500 MILLION "MISTAKE"

NOTE THE STATE ADMITTED A $500 MILLION "MISTAKE"

AND A $800 MILLION "MISTAKE" IN THE SAME EMAIL (BELOW).

DO THEY DESERVE TO RETURN TO UNLIMITED STATE SPENDING?

On 5/29/19 2:09 PM, Greg Sobetski wrote:

Hello Representative Bruce,

I've attached a spreadsheet with the information you requested. While I'm
not able to build a chart for you, this information should be sufficient
to allow someone to construct a chart of the type you had requested.

A few notes:

First, these numbers are different from those in my earlier email. In the
case of the FY 2017-18 number, I had made a simple computational error in
my earlier email. The $40.9 billion number is correct. In the case of
the FY 1993-94 number, I realized that I had been using a preliminary,
unaudited report that was later audited. The final report concluded that
state spending for FY 1993-94 was $9.0 billion. In both cases, the values
in the attached spreadsheet are the best values to use. The updated
compound average annual growth rate is 6.5 percent over the 24 year
period.

Second, as we discussed before, the values in the "other exempt district
spending" column omit interfund transfers in order to avoid counting the
same dollars more than once.

Please let me know if you have any further questions,

Greg

Gregory J. Sobetski
Senior Economist
Legislative Council Staff
303-866-4105

Find our most recent economic and revenue forecast at
http://leg.colorado.gov/EconomicForecasts

From: Douglas Bruce <Taxcutter@msn.com><mailto:Taxcutter@msn.com>
To: Greg Sobetski <greg.sobetski@state.co.us><mailto:greg.sobetski@state.co.us>
Date: 05/26/2019 12:58 PM
Subject: Re: History of Total State Spending

Thank you for your answer. Can you prepare a
year-by-year bar chart of the total state spending
figures from FY 1994 ($8.5 B) through FY 2018 ($40.1 B),
with each yearly amount resting on the top of each bar?
I want to put the chart on a website. For 25 entries,
I assume it should be red ink in landscape format.

If you can't, please list the yearly figures and I
will try to find someone to make the chart.

Thank you.
(719) 550-0010

On 5/14/19 10:37 AM, Greg Sobetski wrote:
Hello Representative Bruce,

Susan Liddle sent me your question on the change in total state spending
between FY 1992-93 and FY 2018-19.

By "total state spending," you may mean total nonexempt spending for the
state district, i.e., state "fiscal year spending." However, we are also
asked about the grand total of exempt and nonexempt state district
spending and state enterprise spending, so I will attempt to answer the
question both ways.

I have attached a scanned copy of the FY 1993-94 computation of fiscal
year spending. This document has been prepared annually by the Office of
the State Controller (OSC) in the Department of Personnel and
Administration since FY 1993-94. As you can see, state district fiscal
year spending for FY 1992-93 was $5.1 billion, inclusive of all nonexempt
General Fund and cash fund spending. It appears that OSC did not compute
enterprise or exempt district expenditures for FY 1992-93; however, this
computation was performed for FY 1993-94 and has been performed for every
year since. As you can see, for FY 1993-94, state district fiscal year
spending was $5.4 billion. However, total state expenditures for FY
1993-94 equaled $9.9 billion, including enterprise expenditures of $0.7
billion and exempt district expenditures of $4.2 billion, and omitting
fund balance increases of $0.5 billion.

Because books have not been closed for FY 2018-19, I will provide final
figures for FY 2017-18 and a forecast of nonexempt district fiscal year
spending for FY 2018-19. OSC will not publish its figures for FY 2018-19
until the state comprehensive annual financial report is released, likely
in December.

The computation of FY 2017-18 fiscal year spending can be found on page 2
of the other attached document. As you can see, state fiscal year
spending for FY 2017-18 was $11.2 billion, equal to the fiscal year
spending limit. The state retained and spent an additional $2.5 billion
under the excess state revenues cap ("Referendum C cap"). However, the
total of exempt and nonexempt state district spending and state enterprise

spending was $48.1 billion for FY 2017-18. That amount includes $17.9
billion in enterprise expenditures, the aforementioned $2.5 billion
retained under the excess state revenues cap, and $17.4 billion in other
exempt district expenditures, and omits $0.8 billion in fund balance
increases.

When we report "total spending" numbers, we often exclude interfund
transfers. While these amounts constitute "spending" for accounting
purposes, we try to avoid counting the expenditure of the same dollars
multiple times. If you allow this exclusion, total state expenditures for

FY 1993-94 were $8.5 billion, and total state expenditures for FY 2017-18
were $40.1 billion. This represents a compound average annual growth rate

of 6.7 percent over 24 years, or a simple growth rate of 7.0 percent from
FY 2016-17 to FY 2017-18.

Finally, our March forecast anticipates that FY 2018-19 state fiscal year
spending will equal the fiscal year spending limit, which we project at
$11.8 billion. We further anticipate that the state will retain and spend

$2.6 billion under the excess state revenues cap, and that the state will
owe a refund obligation of $64.8 million. Our forecast does not estimate
enterprise expenditures or exempt state district expenditures.

I hope this information is useful to you. Please let me know if I can
assist further,

Greg

Gregory J. Sobetski
Senior Economist
Legislative Council Staff
303-866-4105

Find our most recent economic and revenue forecast at
http://leg.colorado.gov/EconomicForecasts