Save this content for laterSave this content on your device for later, even while offline Sign in with FacebookSign in with your Facebook account Close

Colorado floods could been a boon for some economic sectors

By: IVAN MORENO The Associated Press
September 20, 2013 Updated: September 20, 2013 at 2:30 pm
0

DENVER - In the aftermath of flooding that devastated northern Colorado, state economists have begun to assess the financial impact of the disaster and are predicting a boost for some sectors.

Employment in the construction labor and materials industries, along with lodging businesses, should increase, the Legislature's chief economist said Friday.

After a sharp immediate economic decline, natural disasters spark "a sharp rebound in economic activity as resources are poured into rebuilding and restoring the infrastructure of homes and other things," said Natalie Mullis, speaking to lawmakers during a quarterly review.

"Isolated communities will be the hardest hit, and their economies will rebound only after roads are repaired," she said.

The full economic effect of the disaster is unknown, but Mullis gave lawmakers glimpses of how the state economy could perform.

In addition to a boost in construction employment, Mullis said that in the short term, the food industry and sales and auto repair businesses could also see increases. Long term, Mullis said, there could be new investments in residential, commercial and public infrastructure.

The floods last week damaged or destroyed nearly 2,000 homes. More than 200 miles of state highways and 50 bridges also were damaged.

The economic figures being released Friday are crucial because they will influence Gov. John Hickenlooper's November budget proposal to lawmakers for the coming year.

His economists told lawmakers that it's "too early to know the scale of the economic and budgetary impacts of the recent tragic flooding in the state."

Hickenlooper's economist said the state's economic forecast remains unchanged from their last report three months ago, when they said tax receipts also continued to increase and the state finished with a general fund surplus of $1.1 billion for the fiscal year that ended June 30.

That money by law goes into a state savings account for education. The governor's economists also said Colorado will end this year with employment levels back to where they were before the 2008 recession.

Register to the Colorado Springs Gazette
Incognito Mode Your browser is in Incognito mode

You vanished!

We welcome you to read all of our stories by signing into your account. If you don't have a subscription, please subscribe today for daily award winning journalism.

Register to the Colorado Springs Gazette
Subscribe to the Colorado Springs Gazette

It appears that you value local journalism. Thank you.

Subscribe today for unlimited digital access with 50% fewer ads for a faster browsing experience.

Already a Subscriber? LOGIN HERE

Wake up with today's top stories in your inbox

Wake up with today's top stories in your inbox

or
Already a print subscriber?
Already a digital subscriber?
 
This is your last FREE article for the month
This is your last FREE article for the month

Subscribe now and enjoy Unlimited Digital Access to Gazette.com

Only 99 cents for Unlimited Digital Access for 1 month
Then $2.31/week, billed monthly, cancel anytime
Already a print subscriber?
Already a digital subscriber?

 
You have reached your article limit for the month
You have reached your article limit for the month

We hope that you've enjoyed your complimentary access to Gazette.com

Only 99 cents for Unlimited Digital Access for 1 month
Then $2.31/week, billed monthly, cancel anytime
Already a print subscriber?
Already a digital subscriber?

 
articles remaining
×
Thank you for your interest in local journalism.
Gain unlimited access, 50% fewer ads and a faster browsing experience.