State Budget

Nonpartisan staffers told lawmakers this month that the way they spent billions of dollars in one-time federal funds given to Colorado during the COVID pandemic contributed to the state’s budget shortfall.

The $95 million a year voters approved when they passed Proposition MM in November is expected to generate enough to fund the Health School Meals for All program. But it might still go back to the ballot.

Each year the cycle continues, state lawmakers will have fewer ways to address the gap without cutting state programs and services. Skyrocketing Medicaid costs are primarily to blame.

Democrats at the Capitol also pushed back the start date of Colorado’s first-in-the-nation AI law, shored up subsidies on health insurance and tweaked a pair of measures on the November ballot

Gov. Polis implemented a hiring freeze for state agencies in response to the billion-dollar revenue loss for Colorado created by Congressional Republicans' One Big, Beautiful Bill Act. But workers are concerned the freeze will make their jobs even harder.

Gov. Polis calls lawmakers back Aug. 21 to fix a $1.2B budget gap and revisit Colorado’s new AI law. A hiring freeze and healthcare changes are also on the table.

Presentations about the so-called big, beautiful bill to the Executive Committee of the Legislative Council on Wednesday was a precursor to a special lawmaking term expected to be called by Gov. Jared Polis for the coming weeks.

Colorado lawmakers are grappling with a $1.2 billion budget shortfall, making difficult cuts to programs like food assistance, healthcare, and local government support.

Colorado economists predict slower economic growth but improved budget outlook by $16 million, despite uncertainties in the state's financial projections.

Gov. Jared Polis and Democratic lawmakers want to cap state insurance payments to hospitals, but providers say they're already operating in the red.