Record-high natural gas and oil production, rising wages, and new tax law to fuel hundreds of millions of extra dollars into Colorado’s state budget
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DENVER, April 3, 2018 – Natural gas and oil production is a top contributor to Colorado’s general fund – a portion of the state budget. Next fiscal year’s revenue increases could top ten percent, up to $12.5 billion, according to the latest economic and revenue forecast by the Legislative Council.
“Innovations in the natural gas and oil industry are increasing production, creating high-paying jobs in Colorado and injecting billions more into state and local budgets,” said Tracee Bentley, executive director of the Colorado Petroleum Council, a division of the American Petroleum Institute. “This additional revenue will help fund local governments, construction and maintenance of public facilities and water projects, as well as support public services.”
While Colorado natural gas and oil producers are projected to pay $62.2 million in FY17-18, their severance tax contribution in FY19-20 is expected to more than double to $140.3 million, a projected growth that would largely support the general fund budget increase to $12.5 billion.
“This positive news underscores the importance of the natural gas and oil industry in Colorado as well as the fact that producers already contribute a significant amount to Colorado’s tax base,” said Bentley. “We look forward to continuing to work in collaboration with the state of Colorado to benefit its residents through safe and environmentally sound natural gas and oil production.”
Colorado has the sixth largest natural gas reserves and is the sixth largest producer of natural gas in the United States. Industry jobs can be found in 50 of the 64 counties of Colorado – producing a total economic impact of $31.4 billion across the entire state, providing more stability and security for hardworking Coloradans.
The Colorado Petroleum Council is a division of API, which represents all segments of America’s oil and natural gas industry. Its more than 625 members produce, process, and distribute most of the nation’s energy. The industry supports 10.3 million U.S. jobs and is backed by a growing grassroots movement of more than 40 million Americans.