State Budget

On Tuesday morning, around a hundred people gathered on the west steps of the state Capitol.

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.

Gov. Polis is asking lawmakers to slow spending on Medicaid and to privatize Pinnacol Assurance.

The money comes as part of the governor’s proposal that includes a small budget increase for the state’s universal preschool program.

Local governments across Colorado face budget deficits in 2026. Some are tapping their reserves to keep people fed as SNAP benefits lapse.

Over the last decade Medicaid spending has risen at a rate of 8.8% a year — about double what the state government is allowed to spend under the Taxpayer’s Bill of Rights, according to the governor’s office.

One reason is that the state is paying out more to lower income residents through targeted tax credits.

Providing the same level of government programs and services next fiscal year is predicted to cost $850 million more than the legislature will have available to spend.

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.

President Trump’s so-called “big beautiful bill” created some unintended consequences for Colorado: It changed how much revenue state lawmakers can expect in the year ahead, and created a $750 million shortfall. So – as state lawmakers prepare for a special session beginning later this week – how will they try to plug that $750 million hole?