Colorado's major sources of revenue are taxes, operating grants and contributions, and charges for services. The amounts shown as Taxes generally are collected without any requirements as to how they will be spent. They are the primary source of money for the Legislature and Governor when they decide where state money will be spent.
Operating Grants and Contributions are monies that usually must be spent on the purpose for which the money was received. Most of this money comes from the federal government. Restricted revenues include certain taxes dedicated to education and highways. Capital Grants and Contributions include money that is required to be spent on capital assets such as buildings or equipment. cost of this money comes from the federal government. The graph above shows total statewide revenue including certain internal transactions in actual dollars without adjustment for inflation. The state's revenue generally follows the growth in income of the state's citizens, including wages, business income, and investment income. Economic growth increases jobs, wages, and in most instances, the stock market. This results in increases in state revenue from taxes on wages and investments.