Colorado’s $50 Million Budget Plan: What it Means to Your Finances

Governor Bill Ritter, Jr. recently submitted a $50 million budget proposal, the fifth time he’s had to modify the budget to fit the $7 billion General Fund fiscal plan. Ritter has managed to cut state spending and $2.1 billion in budget shortfalls. He plans to continue cuts by suspending tax exemptions for the following industries:

• Energy Manufacturing
• Candy and Soda
• Software
• Online Purchase
• Pesticides
• Non-Essential Food Containers
• Agriculture
• Direct Mail Advertising

While these tax exemptions may not seem to affect you, consumers will definitely feel the pinch. The companies in this industry will definitely trickle down the cost to residents to offset at least some of their losses from the suspended tax exemption. Taking a look at the list, it seems that online purchases will immediately affect most consumers.

Instead of spending, you should shift your perspective towards saving. During an economic downturn, and especially when emerging from one, your strategy should be to save as much as possible precisely because the future is so unpredictable. At the height of the stock market in 2008, no one would have considered the economy taking such a huge dive. It’s no different than at any other point in financial history. There will be swings in both directions, but as long as you’re focused on saving you’ll come out ahead.

Check out our rates charts for comparisons on the best savings account and CD rates available for Colorado today. You may find that saving is easier than you think – just enter your zip code and you’re done.

Remember, the government can only make more money by cutting its budget spending and improving savings.  You can do the same on a smaller level and come out on top.

To read more about Colorado’s suspension of tax exemptions, click here.