Funding Profile: Colorado

State Background Information

Colorado is a rapidly growing state; in 2000 the population was estimated at slightly over 4.3 million people, an increase of 30.6 percent since 1990 and the third highest growth rate in the nation. The state is home to 11 of the 50 fastest growing counties nationwide, including counties ranking 1st, 3rd, and 5th. Between 1989 and 1999, Colorado had the highest growth rate of median household income in the country, with an increase of 33.2 percent adjusted for inflation; in 1989 the state ranked 29th for income but in 1999 jumped to 6th nationally at $47,987. In 1995, Colorado ranked 24th nationally in percentage of land owned by the State, with 4.4 percent.

Fastest Growing Counties

County	Pop. change1990-2000	National Rank	Population (2000)
Douglas	191.0%	1	175,766
Elbert	123.2%	3	19,872
Park	102.4%	5	14,523
Eagle	90.0%	10	41,659

Programs

Program	Year Begun	Funding Mechanism	Funding Level	Acres Protected
Great Outdoors Colorado	1992	State Lottery	$35 million in FY 2000	300,000+
Conservation Trust Fund	1983	State Lottery	$35.8 million in FY 2000	--
State Parks	1983	State Lottery	$9.4 million in FY 2000	--
Conservation Easement Tax Credit	1999	Tax Credit	projected at $1.5 million in FY 2003	--

The Colorado Lottery for Conservation and Great Outdoors Colorado

Approved on the ballot by voters in 1980 and passed by the General Assembly in 1982, SB 119 established a state-sponsored lottery which began in January of 1983. As voted on, some of the proceeds of this lottery go to land conservation.

Originally, 40 percent of the proceeds went to the Conservation Trust Fund, 10 percent to Colorado State Parks, and 50 percent to the Capital Construction Fund for state buildings and prisons. However, in 1992 a petition put a measure on the ballot to create a Great Outdoors Colorado (GOCO) Trust Fund and the measure was approved with 58 percent in favor. Between 1993 and 1998, GOCO received 15 percent of the proceeds and in 1999 received 50 percent. From the creation of the lottery through FY 2000, $1.1 billion have been made available for state programs, $98.5 million in FY 2000 alone. In 1998, legislation was enacted extending the Colorado Lottery to 2009.

In 2000, a ballot measure passed that authorizes the state to participate in Powerball, a multi-state lottery, starting August 2, 2001. The game's expected proceeds are $12 million in its first year, which will be divided among GOCO, CTF, and State Parks. The programs below are all funded by the lottery:

Great Outdoors Colorado (GOCO)

In 1992, voters placed on the ballot and approved the creation of the Great Outdoors Colorado Trust Fund. GOCO is funded by the proceeds of the Colorado Lottery, receiving 50 percent with a $35 million cap, adjusted for inflation (proceeds above that return to the State General Fund). The GOCO Trust Fund is administered by a 15-member Board of Trustees and is used to fund outdoor recreation, wildlife protection, and open space acquisition. State and local government agencies, including special districts, and nonprofit land conservation organizations are eligible to apply for grants, and 25-50 percent matching funds are required.

Between 1994 and 2001, GOCO distributed $240.9 million to 1,419 projects. More than $28 million went to fund 99 Open Space Projects, conserving 156,000 acres. Another $108.2 million was awarded to fund 24 Legacy Projects that "place strong emphasis on the preservation of land." For example, in 1997, $4.46 million was granted to the Colorado Wetlands Initiative, a program that has conserved over 99,000 acres between 1997 and 2000. GOCO has also helped the State Parks Department purchase 15,259 acres of new parkland and aided the Division of Wildlife purchase land for a 30,000-acre State Wildlife Area. Forty-eight projects by local governments were funded for new park and land acquisition projects. In recent years, available funding has met the $35 million cap and is expected to do so again in FY 2001. The new Powerball game will help ensure that the cap is met in future years.

Conservation Trust Fund (CTF)

Over 400 cities, towns, counties, and special districts are eligible to receive CTF grants, distributed by the Colorado Department of Local Affairs. The funds may be used to acquire open space and to purchase, maintain, or restore local facilities, equipment, and parks. In FY 2000, CTF received $35.8 million from lottery proceeds.

Colorado Division of Parks and Outdoor Recreation (State Parks)

Colorado has 40 state parks, and lottery money is used to fund land acquisition, trail systems, park facilities, and equipment. In FY 2000, $9.4 million of the $17.7 Capital Budget was funded by lottery proceeds with an additional $5.3 million contribution from GOCO. Seventeen percent of the Division's 2000 Capital Construction Budget is allocated for land and water acquisitions.

Conservation Easement Tax Credit

On May 28, 1999, Governor Bill Owens signed House Bill 1155, a law that grants an income tax credit to individuals or corporations for the donation of conservation easements to governmental entities or non-profits. The original maximum tax credit was $100,000 and could be used over a period of up to 20 years. An act signed on June 1, 2001 raised that maximum to $260,000 (100 percent of the first $100,000 of the donated value and 40 percent of the remaining value, up to that cap) and set the maximum credit that could be used each year at $50,000. This law is expected to cost the state $1.5 million in FY 2003, $4.5 in FY 2004, and $7.5 in FY 2005.

Sources

Colorado Division of Wildlife, "The Colorado Wetlands Initiative," http://wildlife.state.co.us/wetlands/colo_wetlands.asp The Colorado Lottery, "Where Do Lottery Proceeds Go?" http://www.coloradolottery.com/about/proceeds.cfm CommonWealth, "State of the States," http://www.massinc.org/ Colorado State Parks, http://www.parks.state.co.us/ Great Outdoors Colorado, http://www.goco.org/ Lottery Insider, "The Colorado Lottery," http://www.lotteryinsider.com.au/lottery/colorado.htm Text of HB 99-115, HB 01-1090 http://www.leg.state.co.us/ US Census 2000, http://www.census.gov