Gov. Jared Polis’ pitch to sharply rein in Medicaid spending and privatize the state workers’ compensation insurer ran into skepticism from the legislature’s Joint Budget Committee on Wednesday, setting up a showdown as they attempt to bridge another $1 billion spending gap.

Polis, in his balanced-budget proposal that was due Nov. 1, looked to restrain runaway Medicaid spending and again leaned on privatizing Pinnacol Assurance to generate money to reach that balance. The legislature will have the final say on the budget document, however, and several members of the powerful six-member, bipartisan committee questioned how the governor landed on the solution.

Sen. Jeff Bridges, a Greenwood Village Democrat who’s now vice chair of the committee, called Polis’ Medicaid cuts “particularly large.”

But with the low-income health insurance program representing more than a third of the $18.6 billion general fund budget — and growing far faster each year than the general spending growth allowed under the Taxpayer’s Bill of Rights — it’s a clear target.

“It is not an unreasonable approach. However, it is concerning to see,” Bridges said.

Polis countered that his budget proposal for the 2026-27 budget year, which begins July 1, still would allow state Medicaid spending to grow by 5.6%, or by nearly $300 million.

It would be a historic increase, even if it’s less than the nearly 12% bump that would be necessary to continue providing the same services next year.

His budget aims to limit some Medicaid services, including by capping dental benefits, and roll back some increases in how much the state pays Medicaid providers for their services.

Polis characterized it as an attempt to rein in long-term cost increases without kicking people off the insurance. “Inputs don’t necessarily lead to better outcomes,” Polis said of higher overall spending. “So we’re focused on which investments lead to better, healthier outcomes.” He warned that without substantial changes to how the state manages Medicaid, the program will “squeeze out everything else” the state pays for: roads, support for agriculture, public safety and more.

Sen. Barbara Kirkmeyer, a Brighton Republican on the committee, blasted the governor’s budget proposal as making de facto cuts to Medicaid simply because the overall budget doesn’t keep up with inflation. She noted that many counties are classified as maternal health care deserts already — meaning residents must travel for pregnancy-related care — and cuts to Medicaid will only exacerbate such rural health care struggles.

“This isn’t a trim. It’s a blow to families who are already fighting just to get care,” said Kirkmeyer, who is seeking the Republican nomination for governor in 2026.