S2_11-15-04

• Basin: Statewide
• Title: SWSI Phase 1 Report - Section 2 Statewide Demographic, Economic, and Social Setting
• Date: 11/15/2004
• Author: CWCB
• SWSI - Doc Type: Final Report

Section 2
Statewide Demographic, Economic, and Social Setting
The range of employment by basin gives an indication of
the types and amounts of water use that might be
expected in each basin, as more specifically developed
in projections of M&I water uses in Section 5. The role of
water in Colorado's economy is explored in more detail in
Section 2.2.
County-level median household income data for the year
1999 from DOLA were also aggregated by basin. These
data are summarized in Figure 2-2.
I ~Basin ~Statewide I
~
acy~y \o`~ao c~~o c\yo~ Q\~~e `~cae Q\~~e \G`eec
P.~ Go ,J~c\~a G~c ~o~.c ~\ G ~oJr ~~~e
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° Figure 2-2
1Vledian H~u~ehatd /nc9m~ by Basin, 1999
2.2 Economic Status and Trends
and the Role of Water
Water plays an important role in Colorado by sustaining
many economic activities. Colorado relies on snowmelt
for much of its yearly water supply; in times of drought or
water shortages, economic consequences may occur, as
was evident during the drought of 2002. The options
developed for meeting future water needs must be
sensitive to the implications each can have on the state's
various economic sectors. These supply options will be
critical to many economic segments in the state that will
continue to rely on consistent and dependable water
supplies.
This section presents an overview of Colorado's
economy, with special emphasis on the segments most
reliant upon water supplies. These segments are
identified as:
^ Urban economy
^ Agriculture
^ Mineral
^ Recreation and tourism
The agricultural sector is the largest consumptive user of
Colorado water as shown in Figure 2-3. The tourism and
recreation sector is a fast growing sector of the economy
and is reliant upon several water-based activities. The
mining sector has nearly always had periods of growth
and decline, and has essential water needs in what are
often water scarce areas.
During recent years, the nation as a whole has been in
an economic recession. However, signs of the economy
strengthening are apparent with consumer spending on
the rise, increased job growth, and consistency with the
residential real estate market.
Colorado experienced significant growth in the 1990s
when influxes of people migrated to the state associated
with new jobs. According to the Colorado Economic
Outlook prepared for the Colorado Demography Office
(Center for Business and Economic Forecasting Inc.
2004), this resulted in a large construction boom that
created 10,000 new jobs each year. The 2004 Outlook
notes that this economic and population growth has
slowed in the last few years: in the last 3 years, Colorado
lost more than 100,000 jobs due to lags in the real estate
and construction activity arena, and decreases in real
estate sales and income were apparent. However, recent
improvement in the Colorado economy can be seen
beginning early in 2004, although the 2004 Outlook
predicts that the growth is not expected to reach the rates
seen in the 1990s.
A summary of key variables in Colorado's economic
forecast from the 2004 Outlook is presented in Table 2-5
for years 2001 through 2006.
^ Urban
^ Industrial
^ Agriculture
^ Mining
Figure 2-3
Percent Urban, Industrial, Agricultural, and
Mining Water Use in Colorado
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