2005 Forecast for
Colorado Small Businesses
Colorado's small businesses can expect continued gradual economic improvement in the year ahead. The November elections ushered in changes that appear to bode well for the local and state economy which, like a rising tide, will help lift all small business boats.
Although a surprise to many and disappointment to some, the change of majority control of both houses of the Colorado General Assembly has the potential to bring about long-needed solutions to vexing state challenges. Democratic leaders have committed to focus on the business of state business and to "backburner" many of the partisan and divisive social issues that consume vast amounts of time and energy, but provide little to help the underlying business climate of Colorado.
Newly-elected Speaker Andrew Romanoff (D-Denver) has announced his caucus' agenda for the coming session: fiscal reform, health care and jobs. By taking control of the legislature, the Democrats have an opportunity to break the decision-making stalemate and to broker a solution to the state's conflicting constitutional mandates. The Taxpayer Bill of Rights (TABOR) is designed to prevent unchecked growth of government. Unfortunately, it has also had the effect of preventing the state budget expenditures from recovering from the economic downturn of the past several years.
Similarly, Amendment 23 requires a fixed percentage of the budget to be directed to K-12 education. Although noble in its intent, its inflexibility has compounded strains on the budget during the recession. Based on early indications, it appears legislators will refer to voters measures to fix both the TABOR "ratchet effect" and mandatory funding for K-12 schooling.
Renewed focus on basic economic issues could help to spur investment in the local and state economy. However, the single most important impact will be renewed support for Colorado's colleges and universities, the talent pipeline crucial to the state's overall business health.
Legislators at both the state and federal levels have also pledged to address soaring health care costs and jobs creation. With health care costs crippling businesses and their ability to invest, this attention and assistance is welcome and long overdue. Jobs creation efforts will help the entire economy by helping the unemployed and underemployed get back on a payroll and the tax rolls.
Other voter-approved changes include passage of the FasTracks light rail transit system and a renewable energy initiative requiring utilities to include a fixed percentage of renewable sources in their energy portfolio. Both measures will help the economy generally and small businesses in particular. Much like construction of Denver International Airport 10 years ago, light rail construction will be a job-creator and economic engine for the entire metro area for the next decade. And because renewable energy is to date largely the province of small business entrepreneurs, their visionary efforts will be met by a state-created demand program in coming years.
In summary, 2005 has the potential to help Colorado small businesses of every type with the relief we have long waited for: revival of the long lethargic state economy and with it increased demand for the goods and services we purvey.
This month's guest columnist is Jep Seman. Mr. Seman is president of Corporate Advocates, a Denver-based public relations and government relations firm specializing in strategic communications counsel, local, state, and federal lobbying services and government contracts and procurement assistance.
©2004 Wise Women Communications