Real GDP Growth Quarterly Real GDP

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2 Real GDP Growth Quarterly Real GDP Percent Change, SAAR Sources: Bureau of Economic Analysis and Consensus Forecasts.

3 GDP and Potential GDP Trillions, USD Recession 8 Months Recession 18 Months Actual Projected Potential Real GDP Real GDP Source: Congressional Budget Office, Budget and Economic Outlook, Fiscal Years 2015 to 2025.

4 Recession 8 Months National Employment Thousands, Month-over- Month Recession 18 Months Sources: Bureau of Labor Statistics (Seasonally Adjusted), National Bureau of Economic Research, and the Business Research Division.

5 State Employment Growth Pre-Recession Peak to October 2015 Sources: Bureau of Labor Statistics (Seasonally Adjusted).

6 National Unemployment Percentage of Labor Force U-3 U-2 U-1 Source: Bureau of Labor Statistics (Seasonally Adjusted).

7 Labor Underutilization Percentage of Labor Force U-6 U-5 U-4 U-3 U-2 U-1 Source: Bureau of Labor Statistics (Seasonally Adjusted).

8 Labor Slack Number of Available People Per Job Opening Ratio of people not in the labor force who want a job now and the total number People per job opening of unemployed, divided by total number of job openings Pre-recession average Sources: BLS JOLTS, Labor Force, and Unemployment; Deutsche Bank Research.

9 Labor Force and Unemployment Rate National, by Age Cohort, October % 80% 70% Labor Force Participation Rate 80.6% 82.3% 79.4% 70.8% 63.8% 10% 8% 9.4% Unemployment Rate 60% 50% 6% 5.3% 40% 30% 4% 4.1% 3.6% 3.3% 20% 2% 10% 0% % Sources: Bureau of Labor Statistics, all data seasonally adjusted except for ages

10 U.S. Income and Consumption Percent Change 5.0 Real Disposable Income Percent Change 4.0 Real Personal Consumption % % Sources: Consensus Forecasts.

11 Household Wealth Q Q $ Trillions Other Assets Q Q Q Q Q Q Mutual Funds Corporate Equities Real Estate Total Liabilities Source: Federal Reserve Board, Balance Sheet of Households and Nonprofit Organizations (B100) (Not Seasonally Adjusted).

12 Household Debt Burden Percent of Disposable Income DSR FOR Q2 1983Q4 1987Q2 1990Q4 1994Q2 1997Q4 2001Q2 2004Q4 2008Q2 2011Q4 2015Q2 Source: Federal Reserve, Household Debt Service and Obligations Ratios.

13 Index of Consumer Confidence 1985=100 Recession 8 months 160 Recession 18 months 140 Mountain Region United States Sources: The Conference Board and National Bureau of Economic Research.

14 Vehicle Sales and Retail Sales Thousands, SAAR 25,000 Vehicle Sales Retail and Food Services Sales YOY, Percentage Change , ,000 10,000 5, Sources: Seasonally Adjusted Annual Rate, Autodata Corp., Motor Intelligence, U.S. Census Bureau.

15 Nominal Corporate Profits and U.S. Business Fixed Investment Percent Change Nominal Pre-Tax Corporate Profits Percent Change Business Fixed Investment % % Sources: Bureau of Economic Analysis, Consensus Forecasts.

16 ISM Indices ISM Manufacturing Index ISM Non-Manufacturing Index Source: Institute for Supply Management (ISM).

17 National FHFA Home Price Growth Year over Year Q Source: Federal Housing Finance Agency Home Price Index, All Transactions Index.

18 Housing Affordability Index Composite Index Source: National Association of Realtors.

19 National Housing Starts Millions Sources: U.S. Census Bureau and Consensus Forecasts.

20 Federal Budget Balance $ Billions $ ,000-1,200-1,400-1, Sources: Bureau of Economic Analysis, NIPA Table 3.18B, Consensus Forecasts.

21 Federal Debt Percentage of GDP Percent Gross Federal Debt Held by the Public Sources: Office of Management and Budget, Federal Debt at End of Year (Table 7.1).

22 Money, Interest Rates, and Prices

23 Interest Rates Percent 7.0 Interest Rates, (Forecast) Year T-Note Month T-Bill Sources: Federal Reserve and Moody s.

24 National Inflation Year-over-Year Percent Change All items less food and energy Shelter All items Source: Bureau of Labor Statistics (SA).

25 Colorado Population, Employment, and Prices

26 Change in Population Change in Colorado Population Thousands Net Migration Natural Increase 4th-fastest state for percentage growth 8th-fastest state for absolute growth 22nd-most populated state in nation Continued net migration into the state 83% of population along Front Range Source: Colorado Demography Office.

27 Colorado Employment Growth Jobs Added Thousands , Sources: Colorado Department of Labor and Employment, BEOF Committee Members.

28 Employment Change Professional and Business Services Education and Health Services Trade, Transportation, and Utilities Construction Leisure and Hospitality Government Financial Activities Manufacturing Other Services Information Natural Resources and Mining Thousands of Jobs Source: Bureau of Labor Statistics (Seasonally Adjusted).

29 Colorado Ranking Among Other States Metric 1-Year 3-Year 5-Year 10-Year Real GDP Growth Employment Growth Population Growth Personal Income Growth PCPI Growth PCPI Average Annual Pay Growth Average Annual Pay Unemployment Rate Labor Force FHFA Home Price Index Data Sources: Bureau of Economic Analysis, Bureau of Labor Statistics, U.S. Census Bureau, Federal Housing Finance Agency, and the Colorado State Demography Office. BRD calculations. Note: 1-year, 3-year, and 5-year are based on the compound annual growth rate.

30 West Virginia Mississippi Arkansas Kentucky Louisiana Nevada Alabama Oklahoma Indiana Idaho Tennessee South Carolina New Mexico Ohio Wyoming Florida Michigan North Dakota Missouri Arizona Iowa South Dakota Texas Alaska Wisconsin North Carolina Pennsylvania Georgia Montana Maine Nebraska Rhode Island Delaware Oregon Hawaii Utah Kansas California Illinois Washington Minnesota New York Vermont New Virginia New Jersey Connecticut Maryland Colorado Massachusetts Talent in Colorado Percent Bachelor's Degree or Higher 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Source: U.S. Census Bureau, Educational Attainment, 2014 ACS.

31 Construction Value of Construction Nonbuilding 14% Nonresidential 30% Residential 55% Photo Courtesy

32 Housing Units vs. Households Annual Change 70,000 60,000 50,000 40,000 30,000 Housing Units ,060 more housing units than households ,230 more households than housing units 20,000 10,000 Households Source: Colorado State Demography Office. Data as of September 2014.

33 S&P/Case-Shiller Home Price Indices September 2015 Chicago Washington D.C. New York Cleveland Minneapolis Charlotte Boston Phoenix Detroit Las Vegas Atlanta Los Angeles Tampa San Diego Miami Seattle Dallas Portland Denver San Francisco 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Percent Change Source: Standard & Poor s (Not Seasonally Adjusted).

34 Residential Building Permits ,000 40,000 35,000 30,000 25,000 Multifamily 36,750 Residential Housing: Home appreciation among the fastest nationally Mostly single family permits in ,000 15,000 Lowest foreclosure rate in two decades 10,000 5,000 0 Single Family Sources: U.S. Census Bureau and Colorado Business Economic Outlook Committee.

35 Value of Construction Residential, $Millions 9,000 $8.8 B 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, Sources: U.S. Census Bureau, Colorado Business Economic Outlook Committee.

36 Value of Construction Nonresidential, $ Millions 6,000 5,000 $4, ,000 3,000 2,000 1, Sources: U.S. Census Bureau and Colorado Business Economic Outlook Committee. Photo courtesy of Denver International Airport.

37 Value of Construction Nonbuilding, $ Millions 4,000 3,500 3,000 $3.2 B 2,500 2,000 1,500 1, Sources: Colorado Business Economic Outlook Committee and Dodge Construction Analytics. Photo courtesy of RTD..

38 Value of Construction $ Millions 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 Nonbuilding Nonresidential Residential $16.8 B Sources: McGraw-Hill Construction Dodge Research and Analytics and Colorado Business Economic Outlook Committee.

39 Construction Employment, Thousands Photo Courtesy of Breckenridge Brewery Sources: Colorado Department of Labor and Employment and Colorado Business Economic Outlook Committee.

40 Real Estate Breakout Session How Long will This Hot Real Estate Market Last? Tom Thibodeau, Leeds School of Business Tyler Carner, CBRE Jeff Handlin, Anthem Riki Hashimoto, Newmark Grubb Knight Frank Pat Stucker, Jones Lang LaSalle Doug Wulf, Cassidy Turley Jay Landt, Colliers International

41 Photo courtesy of Jill Lambert. Agriculture

42 Gross Farm Revenue and Net Income $ Millions 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 Net Income Farm Production $7.7B 1,000 Photo courtesy of Sandy Wilt Source: Colorado Business Economic Outlook Committee.

43 Livestock Cash Receipts $ Millions 6,000 5,000 $4.7B 70% of total value of production in Colorado 4,000 3,000 2,000 Rebuilding herds Fed cattle prices continued to wane from 2011 high Number of cattle sales anticipated to drop to record low in , Source: Colorado Business Economic Outlook Committee.

44 Commodity Prices Wheat and Corn Dollars Wheat Corn Sources: Prices from U.S. Department of Agriculture (No. 1 hard red winter - ordinary protein, Kansas City, MO), Bloomberg (USDA Toledo No. 2 Yellow Corn Not on the River Spot Price). Data through November 12, 2015.

45 Crops Cash Receipts $ Millions 3,000 2,500 2,000 1,500 1, $1.8B Corn prices lowest in five years Major crops: wheat, corn, and hay Cash receipts expected to fall for 2016 Government payments expected to rise for 2016 Innovation will play an increasing role for agriculture Source: Colorado Business Economic Outlook Committee.

46 Sprout Tiny Homes built in La Junta s industrial park. Photo by Diane Graham. Manufacturing

47 Manufacturing and Total Jobs Added Colorado, Thousands Total Employment Manufacturing Source: Bureau of Labor Statistics.

48 Manufacturing Employment Thousands , impacts will include: Lower energy prices Interest rates Trans-Pacific Partnership Dollar strength Exports Source: Bureau of Labor Statistics and Colorado Business Economic Outlook Committee.

49 Prohibition Nondurable Goods Number of Breweries Account for 35% of manufacturing employment Food manufacturing largest subsector Food manufacturing adding the most jobs in 2016 Colorado third for craft breweries 0 Source: Colorado Brewers Guild.

50 Durable Goods Account for 65% of manufacturing employment 2016 throughout sector: Nonmetallic minerals Fabricated metals Computer and electronic products Transportation equipment Other durables Employment growth: 2.7% in % in 2016

51 Natural Resources and Mining

52 WTI Oil Price Dollars per Barrel June 3, 2008: $ November 17, 2014: $ Average November 16, 2015: $ Source: EIA, Cushing, OK WTI Spot Price FOB (Dollars per Barrel).

53 Crude Oil Production Largest Producers 1. Texas 2. North Dakota 3. California 4. New Mexico 5. Alaska 6. Colorado 7. Oklahoma 8. Wyoming 9. Louisiana 10. Kansas Production boosted by Millions of Barrels Horizontal drilling Hydraulic fracturing Sources: Rankings from the Energy Information Administration. Production data from Colorado Geological Survey Mineral and Mineral Fuel Activity Reports, Colorado Oil and Gas Conservation Commission, Department of Minerals and Geology, and Colorado Business Economic Outlook Committee.

54 Natural Gas Production Billions of Cubic Feet 1,800 1,600 1,400 1,200 1, ,475 Seventh-largest producing state Average residential gas prices in Colorado for 2014 were the fourth-lowest in the country Net exporter of natural gas Total value of production stagnant due to prices Sources: Colorado Geological Survey Mineral and Mineral Fuel Activity Reports, Colorado Oil and Gas Conservation Commission, Department of Minerals and Geology, and Colorado Business Economic Outlook Committee.

55 Coal Production Supplies 60% of Colorado s energy State ranking slipped to 11 th in 2015 Ships to 21 states Decreasing demand from TVA Power plants divesting from coal Short Tons (Millions) Sources: Colorado Geological Survey Mineral and Mineral Fuel Activity Reports, Colorado Oil and Gas Conservation Commission, Department of Minerals and Geology, and Colorado Business Economic Outlook Committee.

56 Colorado Severance Taxes Severance Taxes, 12-Mo. Rolling Sum $350 WTI, 12-Mo. Ave. $/Barrel $120 $300 $250 Severance Taxes (L Axis) WTI Spot Price (R Axis) $110 $100 $200 $90 $150 $80 $100 $70 $50 $60 $ Sources: Energy Information Association (EIA), Cushing, OK WTI Spot Price FOB; Colorado Department of Revenue, Colorado Office of State Planning and Budgeting. $50

57 Renewables First renewable portfolio standard in the country Includes wind, solar, hydro, geothermal, and biomass 17.8% of net generation in 2014 Most of Colorado s renewable energy comes from wind resources Colorado ranks 10 th nationally for total megawatts installed for wind energy Photo courtesy of Juan Altamirano.

58 Natural Resources and Mining Workers Added, Thousands Making Sense of Commodities Prices -Mt. Sopris Room B Sources: Colorado Geological Survey Mineral and Mineral Fuel Activity Reports, Colorado Oil and Gas Conservation Commission, Department of Minerals and Geology, and Colorado Business Economic Outlook Committee.

59 Goods-Producing Employment Goods-Producing Share of Colorado Employment Goods-Producing Workers Added Thousands 20 Manufacturing 6% Construction 6% Services- Producing 87% Mining 1% Sources: Colorado Department of Labor and Employment and Colorado Business Economic Outlook Committee.

60 International Trade Major Export Destinations Top 15 Export Destinations Canada Mexico China Japan Malaysia Korea, Republic Of Netherlands Switzerland United Kingdom Germany Hong Kong Taiwan Philippines Australia Belgium Hong Kong 3% Republic of Korea 4% Other 38% Netherlands 4% Malaysia 4% Export Destinations Japan 6% China (Mainland) 8% Mexico 13% Canada 20% Sources: World Institute for Strategic Economic Research and Colorado Business Economic Outlook Committee.

61 International Trade Factors Impacting Trade Slower economic growth in some international economies Strengthening of U.S. dollar Trans-Pacific Partnership Indexed, 1973= Nominal Broad Dollar Index Source: Federal Reserve Board.

62 Colorado Exports Value of Exports, $ Millions 10,000 9,000 8,000 $8,229 7,000 6,000 5,000 4,000 3,000 2,000 1, Sources: World Institute for Strategic Economic Research and Colorado Business Economic Outlook Committee.

63 Colorado Agricultural Exports Photo courtesy of Brigitte Shafer.

64 Trade, Transportation, and Utilities Photo courtesy of Denver International Airport.

65 Wholesale Trade Workers Added, Thousands 6 Employment growth at a slower pace 4 Dominated by merchant wholesalers in durable goods 2 Durables: computers, electronics 0 Nondurables: groceries Sources: Colorado Department of Labor and Employment and Colorado Business Economic Outlook Committee.

66 Colorado Gasoline Prices Dollars per Gallon $4.50 $4.00 $3.50 July 7, 2008: US $4.17 CO $4.03 December 1, 2014: US $2.86 CO $2.84 $3.00 $2.50 Average $2.00 $1.50 $1.00 November 30, 2015: US $2.17 CO $2.01 $0.50 $ Source: Weekly Colorado All Grades All Formulations Retail Gasoline Prices (Dollars per Gallon).

67 Retail Trade Sales Colorado Taxable Retail Sales 12-Month Rolling Sum 12-Month Rolling Sum, $ Millions Percent Change 10.0 Colorado Retail Trade Sales Nominal Growth Months Real Growth Sources: Colorado Department of Revenue and Colorado Business Economic Outlook Committee.

68 DIA Enplanements and Deplanements Millions Sources: Denver International Airport and Colorado Business Economic Outlook Committee.

69 Transportation and Warehousing Employment Thousands 4 Transportation and Warehousing Jobs Added Sources: Colorado Department of Labor and Employment and Colorado Business Economic Outlook Committee.

70 Electricity and Natural Gas Consumption Million kwh 70,000 Electricity Consumption Billion Cubic Feet 600 Natural Gas Consumption ,000 54, , , ,000 20, , Sources: Edison Electrical Institute Statistical Yearbook, Xcel Energy, and Colorado Business Economic Outlook Committee.

71 Trade, Transportation, and Utilities Employment, Thousands Utilities Transportation Retail Trade Wholesale Trade Sources: Colorado Department of Labor and Employment and Colorado Business Economic Outlook Committee.

72 Information

73 Information GDP $ Billions, Chained 2009 $25 $20 $15 Percentage Change 12.0% $ % 8.0% 6.0% 4.0% $10 $5 $ % 0.0% -2.0% -4.0% Sources: Colorado Department of Labor and Employment and Colorado Business Economic Outlook Committee.

74 Publishing Thousands 0.0 Publishing Workers Added, Sources: Colorado Department of Labor and Employment and Colorado Business Economic Outlook Committee.

75 Telecommunications Thousands Information Employment Other, 33% Publishing, 28% Telecom, 39% Sources: Colorado Department of Labor and Employment and Colorado Business Economic Outlook Committee.

76 Colorado s Film Industry Colorado Film Tourism The Hateful Eight Dear Eleanor Heaven Sent Fast and Furious 7 Cop Car

77 Financial Activities Financial Activities Employment 30% 70% Finance and Insurance Source: Colorado Business Economic Outlook Committee

78 Securities Trends S&P 500 Index, YTD Price in Dollars 2,400 2,200 2,000 1,800 1,600 1,400 1, % 1, % Source: Bloomberg.

79 The FED Balance Sheet, QE 1, QE 2, QE 3 Fed promises near zero interest rates until mid-2013, 2014, 2015, 2016 Operation Twist Swaps Tapering Tapering Complete $ Millions 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 Other Assets Mortgage Backed Securities Federal Agency Debt Securities Treasury Securities Federal Funds Rate Increase? 500, Source: Federal Reserve Balance Sheet.

80 Colorado Bank Deposits Deposits, Millions $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 Deposits Percent Change Percent Change 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% $ % Source: FDIC, Deposit Market Share Report.

81 Banking Trends Improving capital structures in banks Raising new capital is expensive for smaller banks Solid loan demand Improvement in loan portfolios Decline in acquisitions by large banks Regulatory environment causing some banks to opt out of making mortgage loans

82 Regulation Dodd-Frank Act Rulemaking Real estate lending 7 rules Growing compliance costs Regulation uncertainty Customers on the margin are excluded due to tightened regulation and greater regulatory complexity with regards to loans TILA-RESPA went into effect in August 2015 Smaller loan interest margins limit revenues

83 Colorado Insurance Trends Modest job growth in 2015 and 2016 Premium increases for property and casualty subsector Increased number of insurance agency mergers and acquisitions Health rates expected to increase 2016

84 Commercial Real Estate Trends Colorado ranked fourth-best state for a STEM-focused economy Rising rents and decreasing vacancies Lowest post-recession retail vacancy rate in Denver (5.9%) Statewide economic growth driving real estate activity

85 Colorado Foreclosures ,000 Total State Foreclosures Over Time June YTD ,000 60,000 Sales 50,000 40,000 30,000 20,000 10,000 0 Filings Source: Colorado Division of Housing

86 Federal Housing Finance Agency (FHFA) House Price Index by MSA Q Q Colorado 12.7% Denver-Aurora-Lakewood Boulder Fort Collins Greeley Pueblo Colorado Springs Grand Junction Percent CAGR Q Q Colorado 2.5% Denver-Aurora-Lakewood Boulder Fort Collins Greeley Pueblo Colorado Springs Grand Junction Percent Source: Federal Housing Finance Agency, All Transactions Indexes.

87 Financial Activities Employment Thousands Sources: Colorado Department of Labor and Employment and Colorado Business Economic Outlook Committee.

88 Professional and Business Services Administrative and Support and Waste Management Services 40% Professional, Scientific, and Technical Services 51% Management of Companies and Enterprises 9%

89 Professional, Scientific, and Technical Services PST Employment Thousands 12.0 PST Workers Added Other 31% Legal 10% Architectural and Engineering 23% Management, Scientific, and Technical Consulting 11% Computer Systems Design 25% Sources: Colorado Department of Labor and Employment and Colorado Business Economic Outlook Committee.

90 Management of Companies and Enterprises Most diverse sector of PBS, includes broad cross-section of headquarters and regional offices Sells nationally and globally Colorado remains an appealing place to locate company headquarters Thousands Sources: Colorado Department of Labor and Employment and Colorado Business Economic Outlook Committee.

91 CEO Panel Moderated by: Ellen Balaguer, Retired Senior Executive, Accenture Panelists: Matt Erickson, Zayo Group Brian McDonald, Charles Schwab Joe Mello, DaVita HealthCare Partners Mary Rhinehart, Johns Manville

92 Administrative and Waste Services Admin and Waste Services Employment Thousands Admin and Waste Services Workers Added Other, 25% Employment Services, 29% Business Support, 16% -8.0 Building and Dwellings, 27% Sources: Colorado Department of Labor and Employment and Colorado Business Economic Outlook Committee.

93 Professional and Business Services Workers Added, Thousands Sources: Colorado Department of Labor and Employment and Colorado Business Economic Outlook Committee.

94 Photo courtesy of: Colorado State Parks. Leisure and Hospitality

95 Accommodation & Food Services Workers Added, Thousands Sources: Colorado Department of Labor and Employment and Colorado Business Economic Outlook Committee.

96 Colorado Public Lands Visits Millions 70 Public Lands Visits Photo courtesy of: Colorado State Parks Sources: National Park Service and Colorado Business Economic Outlook Committee.

97 Skier Visits Photo Courtesy of: steamboatpowdercats.com

98 Leisure and Hospitality Workers Added Thousands in-8 Colorado jobs Industry among the first to add workers after the recession Stronger household balance sheets and increased income Increase in consumer spending in restaurants Sources: Colorado Department of Labor and Employment and Colorado Business Economic Outlook Committee.

99 Education and Health Services

100 Private Education Includes: Elementary and Secondary Schools Colleges, Universities, and Professional Schools Sports and Recreation Instruction Cosmetology and Barber Schools Fine Arts Schools Exam Preparation and Tutoring Automobile Driving Schools

101 Private Education Employment, Thousands Sources: Colorado Department of Labor and Employment and Colorado Business Economic Outlook Committee.

102 Health Care Services Health Care Services Employment Growth, Annualized, Ambulatory 3.7% 11% of Colorado jobs Hospitals Nursing Care 1.7% 1.8% Consistent employment growth Obesity among Coloradoans growing Growing senior population Social Assistance 4.8% Insurance coverage expanding CAGR 1.0% 2.0% 3.0% 4.0% 5.0% Sources: Colorado Department of Labor and Employment and Colorado Business Economic Outlook Committee.

103 Health Care Services Major Trends Growth of patient population outpacing growth of healthcare providers Average annual wage is below statewide average Sustained growth expected because of: Aging population Greater number of people eligible for health insurance Growing rates of diabetes and obesity

104 Health Care Services Occupations Above average patient to physician ratio compared to the nation Nurse practitioners are growing the quickest of the healthcare occupations, both statewide and nationally Registered nurses are the largest segment of primary care Growing demand for long-term services and support (LTSS) workforce with aging population

105 Health Care Services Legislation 93.3% of Colorado s population now has health insurance due to the passing of the PPACA Increasing insurance premiums Growing number of underinsured Coloradoans Higher premiums for individual insurance coverage

106 Education and Health Services Employment, Thousands Education Health Care and Social Assistance Sources: Colorado Department of Labor and Employment and Colorado Business Economic Outlook Committee.

107 Other Services Workers Added, Thousands 4 Repair and Maintenance Personal and Laundry Services Nonprofit Associations (Religious, Grantmaking, Civic, Professional, and Similar Organizations) Sources: Colorado Department of Labor and Employment and Colorado Business Economic Outlook Committee.

108 Government Employment, , , , , , , , , , , , Sources: Colorado Department of Labor and Employment and Colorado Business Economic Outlook Committee.

109 Government Employment State (General) 10% State (Education) 16% Federal 13% Local (General) 29% Local (Education) 32%

110 Federal Government Workers Added, Thousands Sources: Colorado Department of Labor and Employment and Colorado Business Economic Outlook Committee.

111 State Government Workers Added, Thousands Sources: Colorado Department of Labor and Employment and Colorado Business Economic Outlook Committee, Photo courtesy of coloradopreservation.org. *Note: 2013 increase partially due to reclassification of employees.

112 Colorado General Fund Gross Revenue (excluding reserves, diversions, and transfers) $ Millions 12,000 11,400 10,800 10,200 9,600 9,000 8,400 7,800 7,200 6,600 6,000 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Source: Colorado Office of State Planning and Budgeting, excluding reserves, diversions, and transfers, December 2014.

113 Local Government Workers Added, Thousands Revenue Sources: Property taxes Sales and use taxes Fees Intergovernmental revenues Sources: Colorado Department of Labor and Employment and Colorado Business Economic Outlook Committee.

114 Colorado Property Tax Revenue Urban and Rural, Millions $8,000 $7,000 $6,000 Rural Urban $5,000 $4,000 $3,000 $2,000 $1,000 $ Source: Colorado Department of Local Affairs.

115 Education Public Enrollment, Student Enrollment 1,000, , , ,000 Public School Enrollment Charter Schools Traditional K-12 Student Enrollment 250, ,000 Higher Education Enrollment All Levels 600, , , , , , ,000 50, , Source: Colorado Department of Education and Colorado Department of Higher Education

116 Services-Producing Employment Services-Producing Employment Government 16% Goods- Producing 13% Trade, Transportation, and Utilities 18% Services-Producing Workers Thousands Added Other 4% Leisure and Hospitality 12% Private Education and Health 12% Informatio n 3% Financial Activities 6% Professional and Business Services 16% Sources: Colorado Department of Labor and Employment and Colorado Business Economic Outlook Committee.

117 Colorado Employment Growth Jobs Added, Thousands Best years since Sources: Bureau of Economic Analysis, NIPA Table 3.18B, Consensus Forecasts.

118 International and National Summary Global output and trade growth Value of the dollar strengthening GDP growth nearing potential Balance sheets getting stronger Rising (but low) interest rates Subdued inflation

119 State Summary Colorado outperforms nation in employment growth Falling unemployment Labor force pressures Full employment Growing population Strong in-migration

120 Concerns Fed funds target rate Cost of housing Availability of labor Price of oil El Niño Median family income