Colorado’s state budget shortfall grows to more than $1.5 billion, forcing legislature to make much deeper cuts
The Colorado Sun • • nation
Key Points:
- Colorado's legislature faces a budget shortfall exceeding $1.5 billion for the 2026-27 fiscal year, a half-billion dollars worse than anticipated at the session's start, primarily driven by rising Medicaid costs and lower-than-expected tax revenues.
- Nonpartisan Legislative Council Staff projects tax revenues to be about $350 million lower than expected, while the Governor’s Office forecasts nearly $700 million more, creating a significant discrepancy in budget planning.
- The Joint Budget Committee (JBC) has been cutting spending, including Medicaid, but still faces a $1.47 billion deficit, complicating efforts to finalize the budget draft scheduled for next week.
- The state’s budget is constrained by the Taxpayer’s Bill of
