Colorado lawmakers are facing a daunting task of filling a $1.2 billion budget hole as state economists confirm the grim economic situation. The March economic forecasts from the governor’s office and legislative staff have outlined the numbers lawmakers will use to set the final state budget. Lawmakers have been aware of the deficit since last year and have already made cuts to address the shortfall.
As legislators race to finalize the budget, they are grappling with how to pay for services like Medicaid, child care for the poorest Coloradans, and school meals, as well as how to fund Proposition 130, which requires the state to pay $350 million to bolster law enforcement. Lawmakers from both parties agree that the state faces a structural spending problem but differ on the causes, with some blaming the Taxpayer’s Bill of Rights (TABOR) and others pointing to excessive state spending.
Despite the challenging financial situation, economists predict that state tax collections will outpace the TABOR cap, though refunds may be minimal. The uncertainty surrounding national policies, such as tariffs and tax changes under the Trump administration, has added to the economic unpredictability.
Lawmakers are set to make difficult decisions on additional cuts to close the budget gap before the budget is heard by the entire Senate next week. The urgency to address the deficit and allocate funding appropriately remains a top priority as Colorado navigates through these tough economic times.
Source
Photo credit www.denverpost.com
