Colorado Governor Signs $44 Billion Budget Amid Shortfall

Colorado Governor Jared Polis has signed a $44 billion budget for the 2025-2026 fiscal year, addressing a $1.2 billion shortfall caused by rising Medicaid costs and a structural deficit. To balance the budget, lawmakers made cuts, eliminating programs such as the State Employee Reserve Fund, a bank incentive program for low-income lending, and a limited school mental health screening initiative. Polis praised the bipartisan efforts of the Joint Budget Committee but warned that the state's financial challenges are far from over, signaling potential future difficulties. The budget signing marks the culmination of months of negotiation amid mounting fiscal pressures.