Release Date: Feb 2, 2025
Colorado’s $1 Billion Budget Deficit
Colorado faces a substantial state budget shortfall of approximately $1 billion, primarily due to Medicaid overspending of $150 million and lower-than-projected state revenue. This revenue decrease stems from a slowing economy, impacting income and sales taxes. The shortfall necessitates potential cuts to the state budget, raising concerns about access to Medicaid services and funding for education. Discussions are underway regarding solutions, including potential use of the state’s reserve fund and long-term Medicaid sustainability.