(The Center Square) – Colorado Gov. Jared Polis recently submitted another series of budget amendments and supplements for the approval of the Colorado legislature.
This comes as the state scrambles to address dropping revenue and an unbalanced budget.
“In this difficult budget environment, we are doing everything we can to deliver the best possible results for Colorado and know that the Joint Budget Committee will have challenging decisions to make in the months ahead,” Polis said.
“We look forward to working with them and the rest of the General Assembly,” he said. The General Assembly is Colorado’s legislature.
The proposal includes budget supplements totaling $48.6 billion in total funds and $18.2 billion general fund requests for fiscal year 2025-2026. Then, for fiscal year 2026-2027, an amended $50.5 billion in total funds and $18.5 billion in general fund requests.
Polis’ letter to the Joint Budget Committee, which will first consider the requests, and the General Assembly said this reflects “updated economic and revenue forecasts and new data on spending and fiscal needs.”
The state has labeled this budget crisis an “unexpected and unnecessary shortfall” due to One Big Beautiful Bill Act, which Congress passed July 1.
That federal legislation shifted some of the spending burden for programs like Medicaid and SNAP back to states. The Center Square previously reported on the impact the bill would have on these programs in Colorado.
In short, the state is expecting to bring in less tax money as revenue, while costs are also expected to increase.
So far, the state has taken many steps to address this issue, with Polis even calling a special session. In November, the governor signed an executive order extending budget cuts to address an $800 million gap in Colorado’s funding. That gap represents less than 2% of Colorado’s total $44 billion budget for fiscal year 2025-26, which was passed in April and started on July 1.
Polis’ executive order extended two others from earlier in the year that suspended certain spending.
Since then, the state also cut tax credits. Colorado’s Family Affordability Tax Credit and the Earned Income Tax Credit expansion have both been turned off for tax year 2026, which Coloradans file for in early 2027.
Polis’ amendments and supplements will be considered by the Colorado legislature, which is currently controlled by Democrats. He said in his letter that it is fiscally necessary for them to be passed.
“The supplemental and budget amendment request maintains a balanced budget that protects and advances key priorities for Coloradans while also prioritizing the responsibilities we have to ensure fiscal discipline now and in the future,” Polis said. “The proposal includes requests for increased resources for only the most critical needs.”
Some of the highlights of the requests include:
• Maintaining a 13% budget reserve.
• Allocating $167 million in state funding for school finance.
• Slowing the growth of Medicaid spending, which is projected to grow by $630 million or 12% just in fiscal year 2026-2027.
• Funding free school meals.
Polis’ office did not respond to questions from The Center Square by the time of this article’s publication.
