DENVER (KDVR) — Governor Jared Polis says the budget for this year is now balanced. After lawmakers wrapped their work earlier this week, he announced the cuts he made in the state’s budget and money moved from the state’s reserves to help fill the gap.
The governor made some moves to fill the final holes in this year’s budget, but some lawmakers are worried about the impacts the move could have in the long run.
Governor Jared Polis said the state no longer has a budget deficit. Lawmakers filled about $250 million after passing 11 bills, many dealing with tax policy, during the special legislative session.
To fill the rest, the governor signed executive orders to use more than $300 million of reserve funding and $147 million of cuts in different areas to the state budget. He had to explain those cuts to members of the state’s Joint Budget Committee.
“I’m thinking we need to have providers to provide for families who are hardest hit, who are the poorest among us in our communities. They actually draw down federal funds. So my question is, why didn’t you cut covering all Coloradans, that doesn’t pull down any federal funds?” asked Senator Barbara Kirkmeyer of Weld County.
The governor was adamant about not cutting K-12 funding or public safety, but he did cut $38.3 million for Medicaid provider rates. The rates now go back to the same rates they were last year, after lawmakers gave them a 1.6% increase earlier this year.
The governor is also cutting $12.7 million in higher education funding, leaving lawmakers with questions.
“Even in a difficult time with HR 1, our higher education system is still seeing a $22.1 million increase for the current budget year, relative to last year’s budget. I understand it’s not the full increase they thought they would see. About a third of that increase is what this cut is. But again, to balance the budget, there have to be a number of cuts across state government.”
The governor also reallocated a bout $105 million from Proposition 123. The ballot initiative that passed back in 2022 allows money to cover K-12 funding when the state falls below the TABOR cap.
Anthony Sutton is a business strategist and writer with a passion for management, leadership, and entrepreneurship. With years of experience in the corporate world, he shares insights on business growth, strategy, and innovation through management-opleiding.org.
