Colorado budget tightens, but spares Medicaid and schools
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Colorado lawmakers are preparing to vote on a $43.9 billion spending plan unveiled Monday that attempts to close a $1.2 billion shortfall without gutting core services.
Why it matters: The annual state budget is the most consequential bill passed each legislative session. This year's edition arrives with outsized pressure — it's the first without pandemic-era federal funding in five years and requires painful belt-tightening across major programs.
Colorado lawmakers are preparing to vote on a $43.9 billion spending plan unveiled yesterday that attempts to close a $1.2 billion shortfall without gutting core services.
Why it matters: The annual state budget is the most consequential bill passed each legislative session. This year's edition arrives with outsized pressure — it's the first in years without pandemic-era federal funding and requires painful belt-tightening across major programs.
Follow the money: Transportation is taking one of the hardest hits.
- More than $71 million is being cut from alternative transit projects, including on-demand rides, bike lanes and emissions-reduction initiatives. Another $64 million is being pulled from broader transportation funding backed by the general fund.
- The budget also slashes $34 million from the Healthy School Meals for All Program, leaving just $8 million to keep it running through December. Democratic lawmakers plan to ask voters to approve new taxes to sustain it, the Colorado Sun reports.
- Another $13 million is being trimmed from a fund that acts as a loan program for state employees. Lawmakers also plan to ask voters this November to raise tax revenue for the program, Colorado Politics reports.
Yes, but: The budget proposal as is avoids the feared cuts to education and Medicaid, long seen as vulnerable targets.
- It includes $150 million in new K-12 spending, a win for education advocates.
What they're saying: "I think that this is a budget that everyone will be upset by and that everyone can be proud of," said Sen. Jeff Bridges (D-Greenwood Village), chair of the budget committee, per the Denver Post.
What's next: The Senate will spend this week weighing the legislation before sending it to the House. After it passes the House, it will head to Gov. Jared Polis' desk.
What we're watching: The budget could be knocked out of balance before the next fiscal year begins July 1 as rising recession risks and escalating trade wars cloud revenue forecasts.
- Medicaid funding threats from the Trump administration could further upend the state's spending plans.
- "There certainly are a lot of indicators that would suggest that we might end up having to come back," said Sen. Judy Amabile (D-Boulder), per the Colorado Sun.