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Awe-inspiring landscapes, an enviable climate and a diverse business community. These assets define Colorado. Of the three, businesses face the least certain future.
Despite the illusions of idealistic politicians, the state government has negligible control over temperatures, scenery and cultural trends. Conversely, the state has absolute control over the regulatory climate that determines the future of our business community.
Each granola store, high-tech aerospace firm, restaurant, bric-a-brac boutique, farm, ranch, retailer, resort and service provider plays a key role in fueling Colorado’s $386 billion gross domestic product.
Business-friendly policies increase Colorado’s velocity of currency. The speed at which buyers and sellers transact goes directly to the availability of goods, services and accessible capital.
Pro-business policies — typically involving reduced regulations — fuel growth in jobs and wages. They generate more revenue for government services. In every way imaginable, businesses play a key role in setting and maintaining Colorado’s quality of life.
That means everyone needs our economy to transact more, with fewer regulatory obstructions.
For years, our business climate impressed other states. Not so much anymore.
“There is little debate that the state’s economy has been among the best in the country. But when we look closely at recent trends and data, the state’s economic future is less certain,” states the newly released Vision 2033 report by the Colorado Chamber of Commerce.
The report reveals causes for concern:
• In the 2023 CNBC rankings of “Best States for Business,” Colorado ranks 11th — down six places from the 2018 ranking.
• Colorado’s economy ranks 32nd this year, down from its top 10 ranking in 2018.
• Colorado’s housing costs have risen 52% in the past five years, making the state a place of high risk and overhead for entrepreneurs and prospective employees.
• Colorado’s cost of living ranks among the country’s 15 highest — a key factor in the state’s employee shortage.
• Based on a Chamber survey of 337 business leaders, 60% believe Colorado’s economy is on the wrong trajectory.
• Two-thirds of business leaders say the state’s business regulations are more burdensome than in other states where they do business.
• The past year has seen statewide job reductions in construction, trade/transport/utilities and financial services.
• Colorado’s growth in education and health services has slowed “significantly” compared to other states.
• The worker shortage has reached a “critical juncture,” due largely to soaring cost-of-living factors caused by regulation.
• Colorado’s education systems are disconnected from future workplace needs.
The report places much of the blame on “new and additional mandates related to employee wages, family and medical leave, retail delivery fees and environmental permitting.”
“Colorado regulations used to be five years behind California’s,” the report explains. “Now we are setting the pace and becoming a mini-California, a state where nobody but the rich can afford to live and where businesses are leaving every day.”
It turns out our new “stick-it-to-employers-and-landlords” rules have backfired on average consumers and employers who can’t afford excessive, no-gain mandates.
All legislators, Attorney Gen. Phil Weiser, Gov. Jared Polis and other statewide officeholders should study Vision 2023 and devise a course of corrective action. The report offers an array of suggestions, all pertaining to regulation.
The simplest implores the Chamber: “Reduce the total volume of state agency regulations by 10% over five years.”
Restoring Colorado’s business-friendly climate should be the highest priority in 2024. Without healthy, prosperous businesses, we cannot expect cutting-edge health care, social services, transportation and education.
Without a vibrant and competitive business scene, all else will suffer — most notably, Colorado’s high quality of life.
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