By Brian Eason | The Colorado Sun
The state of Colorado will end its budget year June 30 with a deficit of as much as $164 million, forcing it to dip into its reserves as it heads into an election cycle fraught with financial uncertainty.
And the budget picture only deteriorates from there, according to revenue forecasts provided to the Joint Budget Committee on Thursday.
Next fiscal year, which starts July 1, the state will start in a $35 million to $86 million hole that budget writers would have to close during midyear budget adjustments, which take place each year in January. That leaves little wriggle room if something unexpected happens in the meantime, like an uptick in health care costs or a slowdown in tax collections.