REMI Project Request
Please fill out the REMI Project Request form and submit it directly to Kristin Strohm at firstname.lastname@example.org
REMI IN COLORADO
What is REMI?
- REMI is a dynamic economic modeling program created by Dr. George Treyz. Regional Economic Models, Inc. (REMI), founded by Dr.Treyz in 1980 is located in Amherst, MA. The REMI model is a regional economic modeling program created to inform and improve the quality of public policy decisions.
Who else utilizes REMI?
- Since 1980, REMI has worked with more than 100 clients including state and local governments, agencies, national and international corporations, the federal government, higher education institutions, major cities and many others including the US Army Corp of Engineers, the EPA, and FEMA.
How is REMI coming to Colorado?
- Common Sense Policy Roundtable, Denver South EDP, and Metro Denver EDC have negotiated a 5‐year licensing agreement with the REMI organization and a management contract with the University of Colorado Leeds School to house and operate the REMI model with oversight of a combined Board of the three co‐sponsors.
What are the goals of this partnership?
- The REMI model will allow CSPR, Denver South, MDEDC, along with the University of Colorado Leeds School Of Business to accomplish independent, in‐depth, fact based analysis to help our organizations and our government representatives make decisions based on mathematically weighted facts and estimates of costs/benefits.
What issues will REMI look at?
- The REMI dynamic economic model can help determine, with independent analysis, the short and long term costs, benefits, positives and negatives of major public policy initiatives including: education, tax, budget, regulatory policies, land use, infrastructure, water, agriculture, tourism, transportation, housing, demographics, crime and security effectiveness, energy and other state and local projects, policy questions, ballot initiatives and strategy planning.
- The REMI model can help evaluate the difference between government expenditures and government investments.
- The REMI model can analyze education reform outcomes and work force skills, matched to existing and projected career and job opportunities.
Drilling setbacks carry big price tag for Colorado economy
The Denver Post, July 14, 2016, by Aldo Svaldi
Potential oil & gas setback initiative could cost Colorado up to 100,000 jobs and billions in GDP
Colorado Real Estate Journal, July 14, 2016
1000s of oil & gas jobs at stake with Colorado ballot proposal, says CU study
Denver Business Journal, July 14, 2016, by Cathy Proctor
Further Colorado Well Setbacks Would Cost 104,000 Jobs, $14.5B in GDP Through 2031, Study Finds
NGI’s Shale Daily, July 15, 2016, by Jeremiah Shelor
CU Economists: Fracking Setback Initiative Could Cost Colorado 100,000 Jobs and Billions in Lost GDP
Energy In Depth, July 14, 2016, by Randy Hildreth
Study: Proposed 2,500-foot well setback could cost Colorado 104,000 jobs
BizWest, July 14, 2016, by Doug Storum
Potential oil and gas setback initiative could cost Colorado up to 100,000 jobs
Rush To Reason, July 16, 2016
Economic development groups deploy advanced model for Colorado issues
The Denver Post, July 17, 2013, by Aldo Svaldi
The Common Sense Policy Roundtable, the Metro Denver Economic Development Corp. and the Denver South Economic Development Partnership are dividing the $150,000 cost for a dynamic econometric model developed by Regional Economic Models Inc.
The three partners will also pay the University of Colorado at Boulder Leeds School of Business $110,000 a year to run the model on a third-party basis. REMI will also receive $38,000 a year to maintain and update it.
Also, the Colorado Office of Economic Development and International Trade has contributed $30,000 to the model.
Although the model’s first test case will be Initiative 22, the expectation is that it can be used to study the economic trade-offs of a wide variety of public-policy and economic-development issues.
“The real value of the model is in getting ahead of the curve; otherwise, you are always reacting,” roundtable chairman Earl Wright said. The roundtable didn’t take a side on the tax.
“In the era of big data, this will be a tool,” added Mike Fitzgerald, president and CEO of the Denver South Economic Development Partnership. “It is a bit of a truth machine if it is working right.”
Policy debates in the state have become increasingly polarized, said Tom Clark, CEO of the Metro Denver EDC, adding the model can serve as a rational, data-based referee on the big questions Colorado faces.
It could help those drafting new initiatives to understand the effects of their proposals and formulate them in a way that is more beneficial to the economy, he said.
The state legislature has resisted calls for dynamic modeling in the past, given the analytical complexities and political complications involved with going beyond a straightforward cost analysis.
Coalition Forms To Bring Better Impact Analysis To Public Policy
The Colorado Observer, July 17, 2013, by Observer Staff
The group, which is composed of the Common Sense Policy Roundtable (CSPR), the Denver South Economic Development Partnership, the Metro Denver Economic Development Corporation, and the University of Colorado Boulder’s Leeds School of Business, unveiled an economic modeling program Tuesday that they say will provide unbiased information about the economic effects of changes in things like spending levels and tax rates.
The econometric model comes from Regional Economic Modeling Inc. (REMI), and the partnership says it will provide policy makers a much more substantive view on the impact of legislation.
“Colorado is facing many significant issues that will undoubtedly have substantial impacts on jobs and our economy,” said CSPR’s Earl Wright, which released its own analysis of a proposed tax hike in 2011. “REMI will provide us with accurate analysis and long-term economic impacts of these actions and the data we need to make informed decisions.”
For years, critics have complained about a failure by policymakers to measure the “dynamic” effects of statutory changes on the economy. Currently, lawmakers can only gauge the costs of proposed changes through a so-called “Fiscal Note,” which only sets forth how many public dollars a specific bill might generate or expend – without examining a proposal’s broader impacts on things like job creation, for example.
That’s something the group is hoping REMI will change.
“The REMI model has the ability to analyze complex economic questions by considering thousands of variables in response to policy changes as opposed to traditional econometric models that take only input/output into account,” read a statement from the group
The dynamic econometric modeling will be overseen by representatives of each of the four groups, who say they are optimistic about the opportunity to provide policymakers and the public with a more comprehensive “big picture” look at changes in the law.
“The REMI model will aid Colorado decision makers in debating and weighing the impacts of the largest public policy decisions facing our state,” said Tom Clark of the Metro Denver Economic Development Corporation. “REMI will allow us to weigh the full impacts of legislation, ballot initiatives and other projects on Colorado’s economy. It will be a valuable tool for our state.”
According to the group, the first proposal analyzed by the new model will be Initiative 22, a $1 billion tax hike plan that voters may be asked to decide on in November. The report is expected in August.
Metro Denver Economic Development Corp. CEO Tom Clark first unveiled the partnership with the Common Sense Policy Roundtable (CSPR), the Denver South Economic Development Partnership and CU’s Leeds School of Business at a Colorado Economic Development Commission meeting in May.
But since securing $30,000 in financing from the Colorado Office of Economic Development and International Trade toward the effort that day, the group has fleshed out the idea further and decided it will use the Regional Economic Models Inc. (REMI) tool first to analyze Initiative 22, the roughly $1 billion education tax-hike initiative on the November statewide ballot.
“We think the REMI Model will bring us much closer to having an open and honest discussion around some very hard choices we have to make,” Clark said at a news conference Tuesday.
Business leaders long have touted dynamic modeling as a better way of determining the impact upon the state budget of a bill or ballot question than the static modeling currently done by the nonpartisan Legislative Council.
Static modeling takes an issue, like a tax break or tax hike, and simply determines how much revenue it will take away from or generate for the state. Dynamic modeling, comparatively, determines indirect repercussions of a tax hike or tax break — such as an increase or decrease in purchases of goods that will result from the policy — and factors that in, too.
Legislators actually passed a bill to allow for limited use of dynamic modeling back when Democratic Rep. Andrew Romanoff served as speaker from 2005 to 2008, but budget analysts for the Legislative Council and for the governor’s Office of State Planning and Budgeting said they were not interested in using the modeling because no viable model had been developed, Clark said.
Since then, however, the REMI model, which analyzes both short- and long-term costs of public policy, has become more respected and consulted by more government entities, he said.
Metro Denver EDC, CSPR and Denver South will split the costs of developing and maintaining the modeling program, and CU will perform the analyses using the REMI model, explained Earl Wright, CSPR chairman.
The policies undergoing analyses will be limited to a few major ones each year that can have major economic effects, such as those dealing with water, transportation, higher education or recruitment and retaining of companies, he said.
“In the era of big data, in the era of ever-increasing complexities, I think this will be a tool that will help us inform our decisions,” said Mike Fitzgerald, Denver South president and CEO. “It’s a bit of a truth machine if it’s working right.”
But truth is impactful only if it is accepted, and the attendance at Tuesday’s news conference was noteworthy.
Senate Assistant Minority Leader Mark Scheffel, House Assistant Minority Leader Libby Szabo and Secretary of State Scott Gessler — all Republicans who have supported dynamic modeling and cost-benefit analyses — were there. No officials from the Democratic Party that controls both the state House and Senate were.
House Speaker Mark Ferrandino, a Denver Democrat who worked as an economic analyst, said afterward that he is not opposed to taking the dynamic-modeling reports produced by CU officials into account when looking at bills and initiatives. But he first wants to study the assumptions and calculations used as part of the REMI model to see if there are inherent biases built into it.
On the issue of the education tax initiative, for example, Ferrandino said he must see how the model compares the value of tax dollars to the value of an education. Making such assumptions is why many Democrats have favored the current static modeling, as it may be imperfect but at least creates an even playing field under which all proposals are considered, he said.
“I’m not completely against dynamic modeling. I think it’s a workable endeavor,” said Ferrandino, who added that he was not invited to the Tuesday announcement, despite organizers’ insistence that he was. “It’s one more piece of information for legislators to use, but we have to be caveatted on what the assumptions are.”
The first modeling on Initiative 22 is expected to be completed within 45 days, Clark said.
Econometric model to examine Init. 22 in debut study in CO
Colorado Space Coalition, July 16, 2013, author unreported
The partnership will use an econometric model developed by Regional Economic Models Inc., or REMI, for the multi-year project.
“Colorado is facing many significant issues that will undoubtedly have substantial impacts on jobs and our economy,” said Earl Wright, Chairman of the Board of Directors of Common Sense Policy Roundtable. “REMI will provide us with accurate analysis and long-term economic impacts of these actions and the data we need to make informed decisions.”
Conducted by the Business Research Division at the University of Colorado Boulder’s Leeds School of Business, the dynamic econometric modeling will be overseen by an Oversight Committee with representatives of the Leeds School of Business, the Common Sense Policy Roundtable (CSPR), the Denver South Economic Development Partnership (Denver South EDP) and the Metro Denver Economic Development Corporation (Metro Denver EDC). The Colorado Economic Development Commission is also a major funder of the REMI initiative.
“We are excited to enter this partnership bringing REMI’s capability to Colorado,” said Rich Wobbekind, executive director of CU-Boulder’s Business Research Division and senior associate dean for academic programs at the Leeds School. “REMI will allow us to provide unbiased third-party research to state and local government, residents, businesses and other key constituencies about the economic impacts related to policy decisions and economic events in Colorado.”
The REMI model is unique in that it provides in-depth analysis of the impacts public policy has on the economy. The REMI model has the ability to analyze complex economic questions by considering thousands of variables in response to policy changes as opposed to traditional econometric models that take only input/output into account.
“The REMI model will aid Colorado decision makers in debating and weighing the impacts of the largest public policy decisions facing our state,” said Tom Clark, CEO of the Metro Denver EDC. “REMI will allow us to weigh the full impacts of legislation, ballot initiatives and other projects on Colorado’s economy. It will be a valuable tool for our state.”
The REMI Oversight Board will put this new tool to use by first analyzing the impact of Initiative 22 that is expected to be on the ballot in November 2013. Initiative 22 would ask voters to increase the income tax rate for taxable income of $75,000 or less from 4.63 percent to 5 percent. Earnings above $75,000 would be taxed at 5 percent up to the first $75,000 and 5.9 percent for income above that.
“Initiative 22 is a perfect opportunity to provide an unbiased and complex analysis on the economic impact of a significant public policy proposal,” said Mike Fitzgerald, President and CEO of Denver South EDP. “We are convinced that the REMI model can help determine, with independent analysis, long- and short-term strategies as well as the difference between government expenditures and government investments. The capacity and reputation of the Leeds School of Business will provide a clearer perspective of the short and long-term costs and benefits of major projects and public policy issues such as Initiative 22.”
The first report from the REMI model analyzing the impact of Initiative 22 is expected to be released in August.