DENVER (CBS4) – The Colorados could see tax cuts and a refund next year as the state’s economy continues to rebound from the COVID-19 pandemic. The state’s Planning and Budget Office released its June economic outlook on Friday, showing stronger-than-expected growth.

(credit: CBS)

Analysts say consumer spending is on the rise as more Coloradans get vaccinated against COVID-19. Colorado General Fund revenue is expected to increase 12.1% in fiscal year 2020-2021, according to the report.

If the results continue through June, Gov. Jared Polis said every Coloradan would get a tax cut next year and income tax would be cut from 4.58% to 4.5 %. Additionally, Polis said each Coloradan could get a tax refund, most likely between $ 30 and $ 120.

“While some Coloradans still face the challenges created by the global pandemic, today’s figures show Colorado’s comeback is on track,” Polis said. “I look forward to officially announcing the tax cut and tax refunds planned for this fall.”

Economic projections released by the Federal Reserve on Wednesday show GDP and inflation to grow more than expected in 2021. Colorado analysts attribute the current high inflation to supply chain disruptions caused by COVID-19, which they say expect them to subside. However, analysts warn that persistent inflation remains a risk.

“While the state is benefiting from a return to domestic travel, city centers may lag behind as companies allow more remote work and business travel is slowly coming back,” the report said.

Colorado’s labor force participation rate has returned to pre-pandemic levels, according to the June outlook, which is linked to a slower recovery in the unemployment rate. The number of job vacancies across the country continues to exceed hires, which the report attributes to labor supply constraints.

To read Colorado’s June economic forecast, click here.