Public employment key driver of state economy
By Development Research Partners, Inc.
Federal, state and local government is the second-largest employer of jobs in Colorado, representing roughly one in six jobs. Government activities include a variety of services ranging from space research and technology to public safety, program administration and education.
Total government employment in Colorado was 410,000 in 2014, consisting of 60 percent local government, 27 percent state government and 13 percent federal government. Employment in Colorado’s government sectors is driven by a variety of factors.
Federal employment can be impacted by changes in the budgets of federal agencies, the political environment and funding levels for institutions and laboratories. The combination of long-term fiscal challenges, including the imbalance between spending and revenue, agency consolidations and sequestration effects, will continue to affect federal employment growth. State government is propelled by healthy growth in income and sales taxes, while counties and municipalities in the state depend heavily on property and sales tax collections.
The federal government remains one of Colorado’s largest employers, with more than 52,000 employees working at over 250 federal offices. The state is home to a diverse mix of U.S. Department of Defense (DoD) military installations employing more than 73,000 military, civilian and contract personnel.
The state’s largest federal government employers – the DoD and the U.S. Postal Service – represent roughly 41 percent of the state’s total federal government workforce. Colorado’s 30 federal laboratories have a profound impact on the state’s economy, employing over 15,680 direct and indirect workers, and generate over $2.3 billion in annual economic impact to Colorado.
Colorado’s state government includes state agencies and higher education. Employment in Colorado’s state agencies accounts for roughly one-third of the state government total employment, while employment in Colorado’s higher education institutions accounts for about two-thirds of the state government total employment.
The state’s agencies provide administrative, financial and other assistance to state officials, staff and citizens in the day-to-day operation of the state’s government. The state’s higher education employees include administrative staff, instructors, support staff and student work-study positions. Colorado’s higher education system includes more than 470 publicly supported, private accredited, area technical and private occupational institutions located across the state.
More than 3,000 local governments in Colorado provide a variety of services through counties, cities, school districts and special districts ranging from K-12 education and public safety to judicial functions and land use regulation. These local governments generally derive their revenues from property taxes, sales and use taxes, fees and intergovernmental sources.
According to the Colorado Division of Property Taxation, residential and business property values rose quickly over the past two years. The assessed residential property values rose 14.3 percent statewide between June 2012 and 2014. During the same period, assessed commercial property values rose 9.4 percent, farmland values rose 11.1 percent and industrial property values rose 5.5 percent. Oil and gas property represents about one-tenth of the overall assessed property tax base and declined 4 percent between June 2012 and 2014.
Colorado has a significant government sector with support from the state’s talented workforce and major federal government employers, state agencies, educational institutions, federal laboratories and local government entities, which strive to provide quality public services to Colorado businesses and residents.
