Budget Bonanza: Joint Budget Committee (JBC) Watch

The Joint Budget Committee (JBC) received an updated economic forecast today, which is important in finalizing the Long Bill. The committee is currently facing the challenging task of identifying more than $1 billion in cuts to meet the state’s constitutionally required budget balance. A notable action by the JBC was Senator Jeff Bridges proposal of a $5 million reduction to the Lottery Division’s budget, which had initially included full funding for marketing. With Representative Taggart absent, the proposal was approved on a 3-2 vote.

The Joint Budget Committee (JBC) continues to meet as it works toward finalizing the state budget. Introduction of the budget bill, commonly referred to as the “Long Bill,” is scheduled to be introduced in the House by March 30. With less than a month remaining before its introduction, the JBC and state departments face difficult decisions as they work to balance priorities and finalize funding allocations.

To help address the shortfall, committee members have asked state departments to present proposed reductions as part of their budget requests. Additionally, any legislation carrying fiscal notes is expected to face a steep uphill climb as lawmakers work to balance the budget.

The committee is chaired this year by Rep. Sirota, with last year’s chair, Sen. Jeff Bridges, serving as Vice Chair.

This year presents a significant challenge. The JBC must identify more than $850 million in budget reductions, after making similar cuts last year. The shortfall will require difficult decisions and prioritizations across departments.

The Joint Budget Committee (JBC) has shifted its focus from supplemental funding requests to reviewing this year’s budget proposals from state departments.

As negotiations continue, decisions made in the coming weeks will play a critical role in shaping Colorado’s fiscal outlook and broader economic environment.

One notable request came from the Department of Corrections, which sought funding for additional inmate beds. The JBC initially denied the request on a 4–2 vote, only to reverse course and approve it a week later. The JBC has also met numerous times with the Office of State Planning and Budget (OSPB), though significant disagreements remain. One of the most contentious issues involves Pinnacol Assurance, Colorado’s insurer of last resort. The governor’s budget office has proposed privatizing Pinnacol, arguing that doing so would provide greater flexibility and generate an estimated $400 million to help balance the state budget. But many members of the JBC and the broader legislature remain skeptical, and several alternative proposals, including a potential ballot measure, for the quasi-governmental entity are under discussion.

The Joint Budget Committee has been working to identify solutions to the budget shortfall and is now wrapping up supplemental funding requests from state agencies. These supplemental requests seek additional funding beyond what was originally approved.

The Colorado legislature passed a $43.9 billion budget for the 2025-26 fiscal year, addressing a $1.2 billion shortfall primarily driven by rising Medicaid costs. The budget prioritizes funding for health care, K-12 education, and higher education, while making significant cuts to transportation, social programs, and local government funding. Key cuts include $64 million from transportation projects and reductions in severance and marijuana tax revenues for local governments, totaling nearly $140 million. The budget passed the House 43-21 and the Senate 24-11, with most Republicans opposing it, and is currently Governor Jared Polis’ signature. Despite a 3.6% increase in general fund spending, the state faces ongoing structural deficits, with warnings of tougher financial challenges ahead

This week, the House took up the Long Bill and considered over 60 amendments as well, with only three adopted. The proposed changes ranged from protecting TABOR and tracking wolf populations to reallocating funds toward education. In the end, the final version of the budget remained largely in line with the original proposal from the JBC. The Long Bill is now on its way to the Governor’s desk for his signature.

Last week, the Senate considered both the Long Bill and the associated Orbital Bills. During deliberations, over 60 amendments to the Long Bill were proposed, with 11 ultimately passing. One notable amendment sought to eliminate the Lieutenant Governor’s second salary for managing Colorado’s Office of Saving People Money on Healthcare. In a rare move, Senator Kirkmeyer broke ranks with her fellow JBC members to support the amendment, which ultimately failed.

Since the release of the last Goldminer issue, both chambers of the Colorado legislature have taken up and voted on the state budget, also known as the Long Bill. In a challenging budget year, the Joint Budget Committee (JBC) was tasked with cutting over $1.2 billion to balance the budget. To achieve this, the Long Bill was accompanied by more than 60 Orbital Bills—supporting legislation that enables those necessary cuts.

Next Monday, March 31st, both the legislature and the people of Colorado will get a clearer picture of the budget, including the expected cuts needed to balance it. The coming weeks will be filled with intense budget debates in both the Senate and the House.

Last week, the March forecast was presented to the JBC. While the forecast was slightly more optimistic than expected, it still predicts the need for $1.2 billion in cuts to balance the budget. Although the forecast shows some positive signs, it also indicates that cuts will likely continue next year. The word “uncertainty” was frequently used during the presentation, primarily due to the unpredictable nature of federal funding.

Several controversial issues were raised during recent JBC hearings. One request came from the Department of Law, which is asking for an additional $640,000 to fund three full-time employees. Representatives from the department argued that the funding is necessary due to recent and upcoming executive orders by President Trump, which require legal advice for residents and funding for current and future litigation. Another contentious issue involved the Department of Health Care Policy and Financing (HCPF), which will not have the authority to overspend on reproductive health policy. This could lead to uncertainty about government funding for contraceptives toward the end of the year. Representative Sirota pushed back against this limitation, arguing that increased access to contraceptives could ultimately save the state money by reducing future Medicaid costs due to less people requesting to receive it.

The Joint Budget Committee (JBC) has extended its decision-making process for one more week. As mentioned above, the budget bill—commonly known as the Long Bill—was not heard this past Monday in the Senate but will be discussed on Monday, March 31.

A phrase frequently heard during this legislative session’s Joint Budget Committee (JBC) discussions has been, “We will revisit this later.” In the coming days, the March Economic and Revenue Forecast will be released, giving the JBC a clearer understanding of the state’s deficit. Current projections estimate Colorado’s budget shortfall at $1.4 billion. The JBC is set to begin finalizing the Long Bill on March 14, with the completed legislation slated for introduction in the Senate on March 24 and final passage expected by March 28. It will then move to the House for finalization.

The Joint Budget Committee (JBC) continues to meet daily to evaluate potential cuts to state department budgets. Recent projections indicate that Colorado’s deficit has increased from approximately $1 billion to $1.2 billion. The JBC has repeatedly stated that all options are under consideration, as demonstrated by the elimination of the Colorado Youth Advisory Council—a program established in 2008 that saves $50,000 annually. Another program potentially facing cuts is the newly launched Equine Wellness Grant Program, created by HB24-1458. JBC members have voiced concerns about the budget and are eagerly awaiting the March forecast, which is expected to spark debate when the Long Bill is introduced in the Senate at the end of March.

During the Senate discussions, Senator Kirkmeyer emphasized that Colorado not in a recession or facing an emergency, but the legislature is overspending on various projects. She also voiced opposition to using the state’s reserves to cover the shortfall, which is currently slightly above 13%, falling $252 million short of its statutory 15% obligation. In response, Senator Bridges argued that the Senate is fiscally responsible and is financially responsible to pay its bills. As the JBC and the Appropriations Bill—commonly referred to as the Long Bill—approach, both sides of the aisle are expected to engage in intense debates. The legislature will also face the challenge of cutting over $1 billion to meet the constitutional requirement of balancing the budget.

Several key themes emerged during the supplemental discussions, with both sides of the legislature focusing on them. One widely reported issue was the failure of the Colorado Bureau of Investigation (CBI) to effectively process rape kits. Another topic of concern was the need to upgrade government fleet vehicles. A further point of contention, with differing opinions between Republicans and Democrats, was the proposal to have the state fully fund immigrant children’s health programs.

Last week, the Joint Budget Committee (JBC) unveiled the supplemental bills for Colorado’s government departments and agencies. Initially introduced in the Senate, these bills have since been approved by the Senate and are now being voted on the House. In an unusual turn of events, there was public disagreement among Senate JBC members during discussions on the Department of Health Care Policy and Financing Supplemental.

This off-year election legislative session is shaping up to be a heated one, with political divisions already on full display. Last week, tensions were high during the Secretary of State’s SMART Act hearing, where the department’s proposed budget was discussed. Republicans took this opportunity to criticize Secretary Griswold, and things got heated when Representative Scott Bottoms was cut off by the committee chair, Representative Wilford, who also abruptly ended questioning for the Secretary of State. However, during the HCPF SMART Act meeting, both Republicans and Democrats took aim at the department’s director. Senator Kyle Mullica came out firing and questioned the director’s leadership abilities, reflecting the growing frustration from both sides of the political aisle with the department.

The JBC and joint committees continued with their SMART Act hearings, which will be finishing up shortly.  The JBC and Governor Polis have some big decisions to make in the coming weeks with a budget shortfall of at least $1 Billion.  The Department of Health Care Policy and Financing (HCPF) is one third of the state general fund’s budget, education is another one third and all other departments receive distributions from the last third.

The State Measurement for Accountable, Responsive, and Transparent Government Act (SMART Government Act) wrapped up last week. The SMART Government Act requires government agencies to give comprehensive information to joint legislative committees annually, within the first two weeks of session. This rule is designed to improve accountability, responsiveness, and transparency in government activities, helping the Joint Budget Committee (JBC) make informed decisions about budget allocations.

The Joint Budget Committee (JBC) has been diligently reviewing the Governor’s budget proposal and examining projections indicating that this year’s budget will require over $700 million in cuts, as well as an additional $350 million in funding for law enforcement that was approved by voters. The largest contributing factor to this budget shortfall is the rising cost of healthcare. JBC staff have also informed legislators that any potential TABOR (Taxpayer Bill of Rights) maneuvers will not provide any relief for the general fund to address this deficit. During a recent meeting of the Joint Agriculture, Water & Natural Resources Committee, Senator Kirkmeyer, a member of the JBC, stressed that the legislature should not rely on general funds to replace federal funds when discussing the current deficit. One thing is clear: significant cuts across government departments and programs will be necessary to balance the State’s budget, which is required by statute.