Colorado severance taxes on natural-gas and oil production will plunge 84 percent to $40 million in fiscal year 2010... That compares with $250 million expected this fiscal year, which ends June 30. A dramatic drop in the price of natural gas and oil is largely to blame for the expected precipitous decline in severance taxes, said Steve Colby, a research contractor with the Colorado Department of Local Affairs, the agency charged with distributing half the state's severance tax. "This is worse than we expected," he said. "We are being more thoughtful and constrained in our use of funds." The department...