You can just barely hire a Senior (as in... knows what they're doing) IT person in Denver right now for the top of their hourly range. Just for comparison.
With the cost of living difference, that's not great. IT drove off people in droves during the downturn and now there is a lack of motivated highly technically-qualified folks. Or too many highly-specialized folks used to there being whole departments to handle everything not directly tied to their expertise.
(Been sitting through DBA interviews for a month now, none have ever racked a server at a datacenter or loaded an OS from the ground up. There was always someone else to do that for them.)
They'll still get someone at that price, though... lots of folks want to get away from the big city and will take the effective pay cut to do it.