THE GOVERNOR'S  NEWSLETTER

November 4, 2025

2025-2026 State Budget Rollout

I released our balanced budget proposal alongside Office of State Policy and Budgeting Director Mark Ferrandino and Lt. Governor Dianne Primavera. While it is typically due on the first weekday in November, this year, I delivered the balanced budget early due to November 1st falling on a Saturday. Our budget addresses the challenging budget environment Colorado faces due to federal headwinds, while protecting critical investments in the areas Coloradans care most about, including education and public safety, and puts Medicaid on a more sustainable path while protecting coverage for Coloradans.

While politicians in D.C. seem more focused on grand ballrooms and taking away Americans’ health care, here in Colorado, we are stepping up to once again deliver a balanced budget for Colorado. I urge Congress to follow our example.

Below are a few highlights from the 2026-27 budget proposal. 

Education:

• $167 million in state funding for school finance, while continuing to move towards a more student-centered approach to total program funding
• Implements 30 percent of the new school finance formula in FY 2026-27 while moving to a three-year average enrollment method for the calculation of Total Program funding, as put in place by H.B. 25-1320
• Increases per pupil funding by $413 over FY 2025-26 to a total of $12,272. More than 50 percent higher funding per pupil compared to the beginning of the Polis administration
• Supports the State Education Fund by transferring any dollars remaining above the statutory reserve requirement in the Marijuana Tax Cash Fund (MTCF) at the end of each fiscal year to the State Education Fund
• Increases Universal Preschool funding by $14.3 million for School Year 2026-27 to serve all children enrolled in the initiative, especially the most vulnerable children in full-day preschool. The increase includes $10.5 million in anticipated Proposition EE revenue and $3.8 million in General Fund.
• Builds off previous investments to improve math outcomes by investing $2 million in State Education Funds to support districts with implementing an evidence-based math accelerator program
• Holds in-state tuition for higher education below the rate of inflation
  $1.1 million for the continuation of the Zero Textbook Cost Degrees and Open Educational Resources initiative for five years to provide institutions and organizations with grants to create open educational resources, such as textbooks, so that students can save money by accessing content for free
• $4.2 million one-time cash fund increase for grants that help Coloradans with disabilities find work, apply for benefits, and access other supports

Public Safety:

• $7.1 million for the State’s emergency preparedness, response, and recovery efforts if the federal government continues to withhold funding. While not fully backfilling the federal funds that are being withheld by the Trump administration, this targeted state investment will help ensure that the State is prepared to act quickly when disasters strike, protect Coloradans and property, and prepare for and manage disasters wisely to avoid unnecessary costs.
• $0.4 million to expand critical efforts to detect and disrupt extremism and domestic terrorism 
• Begins Proposition 130 fund transfers for local law enforcement 
• $0.4 million in funding reallocated to the School Security Disbursement Program, a grant program that makes schools safer through investment in physical security upgrades
• $0.3 million for a bill to create a successor to the Commission on Criminal and Juvenile Justice, a non-partisan entity to research and make recommendations on criminal justice policies

Fiscal Responsibility or Balancing Colorado’s Budget:

• Slowing the year-over-year growth of state funding for Medicaid to 5.6 percent in FY 2026-27, which is significantly lower than the double-digit growth rates observed over the past several years, but still a faster pace than virtually every other state program. A 5.6 percent annual growth rate still represents an annual funding increase of $297.7 million in the  state General Fund relative to the current Long Bill appropriation.
• This budget proposes that the State maintain a budget reserve equal to 13 percent of General Fund appropriations for FY 2026-27.
• A spinoff and conversion of Pinnacol that would remove coverage barriers and allow Pinnacol to better support the needs of Colorado employers and workers in a modern economy. This budget assumes that $400 million of the proceeds of this TABOR-exempt property transaction will be invested in FY 2026-27 for the following purposes: $193 million will be used to provide property tax relief for senior citizens through the senior homestead exemption; $109 million will be invested in controlled maintenance level 1 (preventative and repair work) for state-owned facilities; and $98 million will be used in various ways to balance the overall budget. Additionally, if the proceeds from the Pinnacol conversion are greater than $400 million, any amount above that level will be directed to increase the state budget reserve.
• $15 million in severance tax sweeps from revenue distributions in both FY 2025-26 and FY 2026-27

Colorado Steps Up to Support Families

Lt. Governor Dianne Primavera and I celebrated the Joint Budget Committee’s (JBC) approval of two emergency requests to ensure Coloradans continue to have access to food and nutrition support while the federal shutdown disrupts funding for the Supplemental Nutrition Assistance Program (SNAP), Women, Infants, and Children (WIC), and other federal initiatives.

Colorado is stepping up to make sure families have access to healthy food as the Republican-controlled Federal Government remains shut down. With the JBC’s approval, we are getting $10 million out the door, as the federal shutdown continues, to help food banks meet record demand and continuing to fund WIC so that no parent or child goes hungry in Colorado because Congress can't get its act together. It’s also important for families with school-aged children to know that students can still receive two free meals a day at school, ensuring kids have the nutrition needed to learn and thrive.

The approved measures include:

• $10 million in emergency General Fund support to expand grants for food banks and pantries statewide, helping meet record demand caused by the federal suspension of November SNAP benefits.
• Continued authority for up to $7.5 million in previously approved WIC funding to maintain nutrition benefits and local operations for nearly 100,000 women, infants, and children through November.