Summer school session: Lawmakers flunk budget basics—less tax revenue and more deficits to come

By Gazette editorial board | Commentary, Denver Gazette

Like slacker students who flunked a course and had to make it up in summer school, Colorado state lawmakers who were summoned back to the Capitol last month — to patch a gaping hole in the current state budget — knew they had gathered under a stigma. Convened by Gov. Jared Polis, they sullenly filed into the building with their heads down.

It was nothing to be proud of. And when they had wrapped up the session days later, there was little to celebrate.

They knew they were doing makeup work, atoning for their behavior during the regular session — and the session before that, and the one before that. And while they tried to blame Colorado’s fiscal straits on some of the other kids in class — the president and the Republican Congress — our state’s ruling Democrats knew, or should have known, they had only themselves to blame for bloating the state budget year after year.

They had been on a years-long spending spree worthy of drunken sailors on leave. The money to pay for it all finally ran out thanks to last spring’s congressional tax cuts, which also lowered Colorado’s tax take. So, lawmakers and the governor had to go scrounging under the couch cushions for spare change to bridge the budget gap.

Hence, no high-fives, no jubilation as they exited the statehouse on Aug. 26.

Now, here’s the bad news: It’s not going to get better anytime soon.

As detailed in an in-depth report last week by our news affiliate Colorado Politics, state economists last Monday released data pointing to a weakened economic outlook for Colorado and continued risks for a near-term recession. Meaning, less tax revenue collected by the state — and more budget deficits to come.

The gloomy forecast, presented to the legislature’s Joint Budget Committee, makes clear that even though the state is projected to take in about $700 million more next year than will be collected in the current fiscal year, it’ll still wind up under water in next year’s budget. Lawmakers budgeting for 2026-27 will have $116 million less to spend than they did in 2025-26 after they fill a $306.7 million hole in the state’s statutory reserve and make good on TABOR refunds from 2024, among other obligations.

READ THE FULL COMMENTARY AT THE DENVER GAZETTE

Editor’s note: Opinions expressed in commentary pieces are those of the author and do not necessarily reflect the opinions of the management of the Rocky Mountain Voice, but even so we support the constitutional right of the author to express those opinions.