US EditionColorado Budget Faces $1 Billion Shortfall Due to Federal Tax Changes
COLORADO, JUL 30 – Colorado must address a $955 million deficit caused by federal tax changes reducing corporate revenue and shifting Medicaid costs, with a special legislative session planned for August 2025.
- Colorado budget director Mark Ferrandino announced in Denver on Wednesday that the state faces a $1.2 billion budget shortfall this fiscal year.
- The shortfall results mainly from the federal tax overhaul signed by President Trump on July 4, which cut taxes, Medicaid funding, and shifted costs to states.
- Ferrandino said the state's structural budget issues will worsen due to the tax bill and warned that delaying action will deepen required cuts.
- He warned that delays in addressing the issue will result in increasingly severe budget reductions and mentioned that Colorado’s reserve fund currently holds approximately $2.3 billion, which represents 15% of the general fund.
- Governor Polis is considering a special legislative session in mid-August to address the nearly $1 billion shortfall, as lawmakers prepare for significant budget cuts with limited revenue options under TABOR.
21 Articles
21 Articles
Colorado Newsline
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Colorado health care providers and policy experts present information about federal cuts to Medicaid to several Democratic state lawmakers, including Rep. Emily Sirota, left, and Sen. Judy Amabile, center, during a meeting of the state House and Senate Democratic caucuses, Thursday at the Colorado Capitol. (Delilah Brumer/Colorado Newsline)The immediate question Colorado lawmakers face in the wake of congressional Republicans’ tax break and spen…
Budget director says Colorado is facing another big budget gap
DENVER (KDVR) — On Wednesday, leaders at the state capitol were briefed on the state budget outlook after the "One Big, Beautiful Bill Act" was signed into law. Folks working closely on the budget say Colorado will get hit hard from some of the federal trimming. The state just pulled itself out of a billion-dollar hole. Economists say Colorado is heading right back into another one. New budget introduced at Colorado state Capital that addre…
Aspen Times
Colorado faces another $1 billion budget hole as GOP tax cuts take hold
Colorado lawmakers will need to slash roughly $1 billion from the state’s current budget to offset federal tax cuts passed under congressional Republicans’ sweeping policy bill, according to fiscal analysts. State leaders heard from economic...
Colorado faces new $1.2 billion budget shortfall: 'No money to pay our bills'
DENVER For the second time this year, Colorado is facing a massive budget shortfall, and the legislatures top Democratic leaders blame President Donald Trumps "big, beautiful bill."State budget officials released new projections on Wednesday, showing the current budget is suddenly $1.2 billion in the red.Right now, we dont have the cash to pay our bills, Colorado budget director Mark Ferrandino told lawmakers. "We are talking about a budget and …
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