Polis Proposes $51.2 Billion Colorado Budget
Governor Jared Polis outlined his final proposed state budget to the Joint Budget Committee amid a nearly $1.6 billion shortfall.
Updated on Nov. 13, 2026 in Budgeting
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Gov. Jared Polis presented his final proposed state budget of $51.2 billion to the Joint Budget Committee, about $579 million more than the 2026-27 budget. Colorado faces a nearly $1.6 billion shortfall for the coming fiscal year.
Why it matters
Colorado has faced a deficit exceeding $1 billion for three consecutive years, and the proposal would raise the general fund reserve from 7.25% to 13.05%. Medicaid costs, which are outpacing state budget growth, threaten the rest of the state budget.
The proposed budget totals $51.2 billion, with general fund dollars at $18.9 billion, up $479 million from the previous budget. The reserve would rise from 7.25% to 13.05%, while the nearly $1.6 billion shortfall remains unresolved in this proposal.
The players
Jared Polis
Jared Polis is the governor of Colorado, a Democrat who has led the state since 2019 and is known for his focus on education and fiscal policy.
Joint Budget Committee
The Joint Budget Committee is a bipartisan panel of Colorado state legislators that writes the state's annual budget bill and reviews executive budget requests.
The details
Polis presented the proposed budget to the Joint Budget Committee on Thursday, telling lawmakers that Medicaid costs threaten the state budget. Five voter-approved ballot measures passed the day after the initial budget request, complicating the process; Proposition 137 would redirect about $137 million in sales tax revenue from sporting goods purchases to wildfire prevention and outdoor recreation.
Timeline
Nov. 12, 2026: Polis told the Joint Budget Committee that Medicaid costs threaten the budget.
Nov. 16, 2026: The state controller must recalculate Fiscal Year 2025 TABOR revenue.
Jan. 2, 2027: Polis is expected to release an updated budget proposal and shortfall solution.
Roadmap
Colorado's proposed budget operates within the limits of the Taxpayer's Bill of Rights (TABOR), the 1992 constitutional amendment that caps state revenue growth. The controller reported revenue $275.1 billion below the TABOR cap, yet auditors could not verify the accuracy of the 2026 TABOR report.
Residents face the prospect of continued budget pressure, with Medicaid costs threatening state spending and potentially absorbing new tax revenue within a few years. The proposed sales tax redirection of about $137 million would shift how certain purchases fund wildfire prevention and outdoor recreation.
The takeaway
State budget shortfalls depend heavily on controlling fast-growing costs such as Medicaid, which can quickly consume new revenue. Tracking updated proposals like the one due Jan. 2, 2027 shows whether those pressures are being addressed.
What happens next
Polis is expected to release an updated budget proposal and shortfall solution on Jan. 2, 2027.
Further reading
Explore more on budgeting to see how state budget shortfalls compare with household planning.
Source note: This article includes information reported by Colorado Springs Gazette.
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Should Colorado cut Medicaid growth to protect funding for schools and roads?
