Good evening _,

We wanted to provide you with a clear update on the conclusion of the special session and the latest developments in the state budget.

The special session concluded this past Tuesday, with lawmakers approving measures projected to raise roughly $250 million—about one-third of the projected gap. 

These actions included eliminating and limiting certain tax breaks and deductions, as well as authorizing the sale of tax credits at a discount in future years.

Even with these steps, and along with a drawdown of state reserves, a gap of several hundred million dollars remained. Unlike the federal government, Colorado is constitutionally required to balance its budget.

A few hours ago, Governor Polis presented his plan to the Joint Budget Committee, outlining $252.5 million in spending cuts to close the remaining shortfall and bring Colorado’s budget into balance.

The largest cut is a reversal of planned increases in reimbursement rates for health care providers who serve Medicaid beneficiaries, saving the state nearly $40 million. Governor Polis also proposed redirecting $105 million collected through Proposition 123 to the state budget, along with other measures that together fully close the projected gap this year.

Notably, the Governor made clear that K-12 funding will not be negatively impacted this fiscal year. This is welcome news, and we applaud the Governor and the legislature for protecting K-12 education.

Our advocacy team is closely engaged at the Capitol, monitoring the budget situation carefully and working to ensure charter schools remain protected.

Please reach out with any questions.

Sincerely,
The League's Advocacy Team