As state budget writers continue their search for $1 billion in spending cuts, one thing is becoming increasingly clear: Colorado’s financial problems won’t be solved in a year.
“We are in a situation where there will be cuts made every year to the budget,” Sen. Jeff Bridges, the Joint Budget Committee chair, told The Colorado Sun during our legislative preview event last week.
The reason for that is simple: the state’s biggest expenses, including Medicaid, public schools, higher education and the state’s judicial system are all rising faster than the state constitution will allow the budget to grow.
In the 2025-26 budget year, which starts July 1, the Taxpayer’s Bill of Rights revenue cap is expected to grow 3.8%, according to Colorado Legislative Council staff projections. The following year, it’s expected to grow 3.1% — the combined rate of population growth and consumer inflation.
But general fund spending on K-12 must increase by at least 4.5% annually over the next four years to avoid depleting the State Education Fund, according to Legislative Council staff. The state’s share of Medicaid premiums is expected to increase 6.7% next year, according to budget documents. Throw in courts, higher education, you name it — if it’s a big government entity, officials say the cost to run it is increasing faster than the TABOR cap.
So even after state lawmakers cut $1 billion from next year’s budget, they could face the same situation again in 2026, and 2027, and maybe beyond — unless something significant changes to put the state’s finances on a different path.
Republicans on the JBC blame the budget woes in part on the legislature adding new programs.
“We can’t deny it. There has been a good amount of legislation for new programs for these last three or four years that we could afford with federal funds” — but can’t now, said Rep. Rick Taggart.
“We’ve got to look ourselves in the mirror as legislators as well, because we’ve certainly added to this problem,” said Taggart, a Grand Junction Republican.
There’s no doubt the Democratic majority and the Polis administration have added new programs in recent years. With the exception of 2020, lawmakers passed over 100 bills each year since 2018 that called for new and ongoing spending, according to a JBC staff memo.
But eliminating recently created programs alone won’t solve the underlying problem. As Bridges put it during our event, you could eliminate the entire Department of Agriculture, which receives $22 million a year from the general fund, and still only take a decimal point off the $1 billion deficit.
“I’m not suggesting we do that,” Bridges noted.
But, he added, “we could eliminate the Department of Ag, and we’d still have to cut about a billion dollars. It’s going to be tough. The pain will be felt by Coloradans, and we’re trying to cause the least amount of harm that we can.”
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TABOR REFORM? “NOT TODAY”
There is, of course, at least one alternative to the sort of budget cuts lawmakers are contemplating.
But voters would have to agree to let the state spend more money, either by approving a tax increase or changing the TABOR cap itself.
Outside the Capitol, liberal groups are working on a proposal to pass a progressive income tax that would charge higher earners more. But the effort remains a long way from appearing on the ballot.
Meanwhile, fresh off the defeat of Proposition HH in 2023, legislative Democrats don’t sound ready to mount another effort to adjust the TABOR cap itself.
“Should we be having the conversation? Yes, I think we should,” House Speaker Julie McCluskie, a Dillon Democrat, told The Sun during our legislative event. (You can catch the video on our YouTube page if you missed it.)
“The cap simply isn’t adequate to cover the demands that we are now facing,” she said. “Although, I will say, very loud, I am not taking this on today.”
POLLING
Surveys test voter attitudes toward 2026 ballot measure taxing digital ads, failed Denver fur and slaughterhouse bans
A poll is testing the water on a 2026 Colorado ballot measure to impose an excise tax on digital advertising revenue that would raise more than $200 million annually for youth mental health programs and suicide prevention.
The 20% excise tax would be imposed on companies with more than $1 million in digital advertising revenue in Colorado. That would include companies like Facebook, YouTube and TikTok.
The poll also tested the waters on messaging around the measure.
It’s unclear who is behind the survey, but no such ballot measure has been filed as of yet with Legislative Council Staff, the first stop for proposed initiatives.
Meanwhile, a separate poll is testing Denver voters on the failure of Ordinance 308, which would have banned the sale of fur products in the city, and Ordinance 309, which would have banned slaughterhouses.
The survey asked participants why they backed or rejected the measures.
It’s unclear who was behind that poll, too.
BILL POLL
A third poll we were tipped off to this week is testing voter opinions on a bill that would allow the state banking board to permit credit unions to purchase up to five banks per year. The measure was introduced Thursday as Senate Bill 80.
The survey included messaging about how credit unions aren’t required to be inclusive in who they lend to and how they are exempt from state and federal income taxes.
We’re not sure who is behind the survey, but it sure seems to be opponents of the measure. A similar piece of legislation failed last year.
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THE POLITICAL TICKER
COLORADO SENATE
The Colorado Senate Ethics Committee was convened Tuesday — as expected — to investigate a complaint lodged against state Sen. Sonya Jaquez Lewis over her treatment of legislative aides.
The Senate president, majority leader and minority leader convened the committee after declining to dismiss the complaint.
The members of the committee are:
The committee is charged with investigating the complaint and potentially recommending sanctions, up to and including expulsion from the General Assembly. Jaquez Lewis has already been stripped of her committee assignments and her ability to have state-paid aides.
KEN SALAZAR
Ken Salazar, hot off the end of his tenure as U.S. ambassador to Mexico, will appear at a news conference this morning at the Colorado Capitol.
Salazar, a former interior secretary and U.S. senator, will appear with a group of state lawmakers to talk about a bill affecting the San Luis Valley, where he’s from.
It’s been a long time since Salazar appeared at an event like the one happening at the Capitol today. It comes as he is considering a 2026 gubernatorial bid in Colorado, which doesn’t seem purely coincidental.
TRUMP ADMINISTRATION
Colorado’s two Democratic U.S. senators say they will support the confirmation of Chris Wright, the CEO of a Denver-based oil and gas company, to be secretary of energy under Donald Trump.
“Chris Wright is a scientist who has dedicated his life to the study and use of energy. He believes in science and supports the research that will deliver the affordable, reliable and clean energy that will not only lower costs but make our country more secure. While we don’t always agree, we will work together because none of us have four years to wait to act,” Hickenlooper said in a written statement.
“Chris Wright is a successful Colorado entrepreneur with deep expertise in energy innovation and technology. He is passionate about strengthening America’s energy independence and lowering costs for Colorado families. While we don’t agree on everything, we look forward to working with him to ensure Colorado continues to lead the country in energy production and innovation,” Bennet said in a written statement.
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YOU HEARD IT HERE
Liston said the quiet part out loud.
The remark came after hours of testimony on Senate Bill 5, which would amend Colorado’s Labor Peace Act. Testimony was limited to a handful of panels, adding to the performative nature of the proceedings.
The measure passed 4-3 along party lines with no amendments to advance to the Senate Appropriations Committee.
The bill would make it easier for unions to require all employees at a company to pay for representation, whether they are in the union or not.
Of course the reality is that the outcome of most committee votes in the Colorado Capitol is decided long before lawmakers step into a committee room to hear testimony from experts and the public. Representatives and senators, however, rarely admit it.
“We all knew how we were going to vote,” Liston said.
THE BIGGER PICTURE
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