Colorado is now projected to face a $1 billion budget shortfall for the current fiscal year, according to an analysis from Mark Ferrandino, budget director for Governor Jared Polis. This new estimate follows an already significant $1.2 billion in cuts made by lawmakers during the last legislative session.
The added financial pressure is attributed to corporate tax deductions included in a federal budget bill passed under former President Donald Trump. The bill, recently enacted by Congress, is expected to reduce state tax revenues and gradually shift costs for key programs such as Medicaid and food assistance onto state governments.
Ferrandino estimates that these added expenses could total another billion dollars by 2032 if left unaddressed.
In response to the growing fiscal challenges, state lawmakers may be called back for a special session as early as this Friday to begin crafting potential solutions.
