State posts $400M surplus; windfall's one of biggest in history. (Colorado)

Colorado's robust economy has put state officials and politicians in the unusual quandary of deciding what to do with a projected $400 million surplus.

Although the state controller won't have the official tally until the third week of August, income and sales tax revenues have flooded state coffers, building on a large surplus in the general fund carried over from previous year.

The Governor's Office of State Planning and Budgeting, in its fourth-quarter Colorado Economic Perspective, puts the surplus, including required reserves, at $427 million for the fiscal year ended June 30.

Another more recent forecast from the Legislative Council estimates the state's stockpile at $442.8 million.

That second number would give the general fund almost double the $222.2 million that state law requires be set aside for a rainy day.

"It's one of the largest surpluses in recent history," said Cliff Hall, state controller.

Colorado isn't alone in its unexpected bounty. With the exception of California, Alaska, Hawaii and some New England …