Colorado governor proposes belt-tightening budget

Driving the news: The roughly $46 billion spending plan for the 2025-26 fiscal year is handcuffed by economic conditions, recent tax breaks and increased Medicaid costs that contribute to lower state revenue collections.

By the numbers: The proposal includes $18 billion in discretionary spending, a 3.8% decrease from the current fiscal year.

Zoom in: The spending cuts would reduce how much Medicaid providers are paid by $41 million, lead to potential government hiring freezes, trim career training initiatives and end other state programs.

• One of the largest cuts at $160 million will delay construction and maintenance of state facilities.

The other side: In other areas, Polis is proposing new spending. 

• Education would get a $115 million increase to boost average per-pupil spending to $11,747, a $299 bump.
• State government and higher education employees would receive a 2.5% salary increase.
• The governor also set aside up to $5 million for incentives to lure the Sundance Film Festival to Boulder.

What's next: State lawmakers expect to begin crafting the next fiscal year's budget later this month.