Colorado budget tightens, but spares Medicaid and schools

Axios

01-04-2025

Colorado lawmakers are preparing to vote on a $43.9 billion spending plan unveiled Monday that attempts to close a $1.2 billion shortfall without gutting core services.
Why it matters: The annual state budget is the most consequential bill passed each legislative session. This year's edition arrives with outsized pressure — it's the first without pandemic-era federal funding in five years and requires painful belt-tightening across major programs.
Colorado lawmakers are preparing to vote on a $43.9 billion spending plan unveiled yesterday that attempts to close a $1.2 billion shortfall without gutting core services.
Why it matters: The annual state budget is the most consequential bill passed each legislative session. This year's edition arrives with outsized pressure — it's the first in years without pandemic-era federal funding and requires painful belt-tightening across major programs.
Follow the money: Transportation is taking one of the hardest hits.
More than $71 million is being cut from alternative transit projects, including on-demand rides, bike lanes and emissions-reduction initiatives. Another $64 million is being pulled from broader transportation funding backed by the general fund.
The budget also slashes $34 million from the Healthy School Meals for All Program, leaving just $8 million to keep it running through December. Democratic lawmakers plan to ask voters to approve new taxes to sustain it, the Colorado Sun reports.
Another $13 million is being trimmed from a fund that acts as a loan program for state employees. Lawmakers also plan to ask voters this November to raise tax revenue for the program, Colorado Politics reports.
Yes, but: The budget proposal as is avoids the feared cuts to education and Medicaid, long seen as vulnerable targets.
It includes $150 million in new K-12 spending, a win for education advocates.
What they're saying:"I think that this is a budget that everyone will be upset by and that everyone can be proud of," said Sen. Jeff Bridges (D-Greenwood Village), chair of the budget committee, per the Denver Post.
What's next: The Senate will spend this week weighing the legislation before sending it to the House. After it passes the House, it will head to Gov. Jared Polis' desk.