Complete Colorado

Colorado regulatory burden, affordability drives business exodus

Colorado’s deteriorating business climate takes center stage in a recent episode of Independence Institute’s* public affairs tv show Devil’s Advocate, as host Jon Caldara and Colorado Chamber of Commerce President and CEO Loren Furman look at companies fleeing the state, and what policymakers could do to reverse the trend.

Furman says 98 large businesses have left Colorado since 2019, taking nearly 14,000 jobs with them. These aren’t failed companies or departures caused by mergers and acquisitions, she explains, but companies relocating operations to other states, with Texas, Florida, Utah and Tennessee among the biggest beneficiaries of the Colorado exodus.

Furman points to burdensome employment mandates, energy and environmental rules, paid family leave and permitting hurdles as examples of regulations that individually may seem manageable, but collectively impose substantial compliance costs, especially for businesses without dedicated legal or human-resources departments.

The consequences are showing up in state rankings, with Colorado falling from 11th to 25th in overall business competitiveness. Furman notes Colorado still does well in areas such as technology, workforce and quality of life, but argues those strengths are increasingly giving way to affordability and regulatory problems.

Caldara and Furman discuss possible reforms, including eliminating two regulations for every new one adopted, temporarily freezing new regulations while existing rules are reviewed, and firm timelines for permitting. Furman points to Denver’s 180-day housing-permit deadline as one model worth considering statewide.

You can see the entire episode on You Tube here, or watch it below.

* Independence Institute is publisher of Complete Colorado.

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