Polis Proposes Medicaid Growth Limit in Final Budget
Colorado's governor unveiled a budget plan with nearly 30 program cuts aimed at slowing Medicaid spending growth.
Updated on Nov. 3, 2026 in Budgeting
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Should Colorado limit Medicaid growth even if it means cutting other state services?
Colorado Governor Jared Polis released his final budget proposal on November 2, 2026, seeking to limit Medicaid program growth to 4.3% for the next budget year. The plan includes almost 30 program cuts and other actions expected to save around $988 million in total spending.
Why it matters
Current trends would push Medicaid growth to about 15% and could consume roughly 40% of the state's general fund, crowding out other priorities such as education. The Medicaid program serves around 1 in 5 Coloradans, so changes to its growth rate affect a large share of residents.
The proposal would cut $988 million in total spending and $290 million in general fund spending, with a $250 million general fund increase for Medicaid included. Projections show Medicaid costs have more than doubled since the 2021-2022 fiscal year, and the Joint Budget Committee has not yet finalized the plan.
The players
Jared Polis
Colorado's governor, who released his final budget proposal and is leaving office after two terms.
The details
The proposal would limit Medicaid growth to the rate state spending is allowed to grow under the Taxpayer's Bill of Rights, based on inflation and population growth. It would eliminate adult dental benefits entirely, reinstate prior authorization for behavioral health, and increase per-pupil public education funding by $488.
Timeline
2021-2022 fiscal year: baseline year from which Medicaid costs have more than doubled.
2025: New school finance formula passed.
Monday, November 2, 2026: Polis released his final budget proposal.
Tuesday, November 3, 2026: The next governor will be elected.
Budget Context
The proposal uses the Taxpayer's Bill of Rights, which limits state spending growth to inflation plus population, as the benchmark for capping Medicaid. Medicaid's rapid expansion since 2021-2022 is putting pressure on that limit and on other budget priorities.
Proposed cuts would eliminate adult dental benefits and reinstate prior authorization for behavioral health services for Medicaid enrollees. Changes to school funding and prison staffing could also affect households through local schools and public services.
The takeaway
Medicaid's rapid growth is forcing Colorado to weigh healthcare coverage against education and other spending. Residents who rely on Medicaid or public schools should watch how the final budget balances those priorities.
What happens next
Lawmakers will work on the state budget through the Joint Budget Committee, which typically completes its balanced-budget work in late March.
Further reading
For more on how state budgets are built and balanced, see Budgeting in our personal finance coverage.
Source note: This article includes information reported by Colorado Newsline.
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Should Colorado limit Medicaid growth even if it means cutting other state services?
