Colorado’s $46.8 billion budget for the upcoming fiscal year will head to Gov. Jared Polis after both chambers of the legislature agreed Tuesday to the final version approved by the powerful budget committee.
The House and Senate had previously adopted a series of amendments to the state spending plan that needed to be reconciled. The Joint Budget Committee decided which amendments would stick, and in which fashion, as it sought to meet the constitutional requirements to pass a balanced budget.
The JBC’s approved changes included higher caps for dental care for immigrants without legal status who benefit from a Medicaid-like program, money for veterans services, and more time to allow children with intellectual or developmental disabilities to transition automatically to adult comprehensive care.
The committee also added $10 million to address an ongoing consent decree, a 2019 federal order that requires the state to reduce wait times for court-ordered mental health evaluations and treatment. The state could face fines reaching multiple times that amount if it doesn’t make progress on cutting those wait times.
This budget, which sets the state’s spending plan for the fiscal year that runs from July 1 to June 30, 2027, was the latest to feature deep cuts as the state grapples with skyrocketing costs in must-spend areas.
One estimate had put the state’s general fund deficit this year at $1.5 billion. The overall general fund, which covers most day-to-day operations in the budget, is set at $17.4 billion for the upcoming fiscal year.
In their efforts to close the budget gap, lawmakers have cut into the rainy-day fund and reserves, halted across-the-board pay raises for state employees, and turned to legal and fiscal maneuvers such as trying to count the past overpayment of tax refunds against future refund obligations.
Medicaid, which provides healthcare for Colorado’s poorest residents, has seen its costs increase at a much faster pace than what state revenues or the Taxpayer’s Bill of Rights allow. That made it a target as lawmakers sought to reverse the “structural deficit” in which the state has spent more than it can afford.
Among the cuts were the elimination of automatic enrollment for children with severe intellectual or developmental disabilities to adult programs, a reduction in paid caregiver hours and more.


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