The Daily Sun-Up Colorado is stuck in cycle of annual $1 billion budget shortfalls
Dec 3, 2025
Jesse Paul, a political reporter for The Colorado Sun, dives into Colorado's troubling cycle of billion-dollar budget shortfalls, driven largely by Medicaid spending. He discusses why temporary fixes aren't sustainable and outlines Governor Polis' controversial proposal to slow Medicaid growth. With bipartisan resistance to cuts, Paul explores alternatives like reducing bureaucracy or increasing revenue. He also highlights the timeline for upcoming legislative decisions that could shape Colorado's financial landscape.
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Medicaid Is Driving Rapid Budget Growth
- Medicaid has been the fastest-growing part of Colorado's budget, rising over 40% since 2018-19.
- That growth far outpaces inflation and other major departments, creating a structural pressure on the budget.
One-Time Fixes Won't Cover Future Gaps
- Lawmakers used one-time pots of unspent money to close this year's $1 billion gap.
- Those reserves are now diminished, so future balancing will force deeper choices among big line items.
Trim Growth, Don’t Eliminate Medicaid
- Consider trimming Medicaid spending growth rather than freezing it entirely to limit budget pressure.
- Governor Polis proposes smaller increases to slow spending growth without cutting baseline access.