Advocates Urge State Leaders To Protect Vulnerable Residents From Budget Reductions

By: Colette Bordelon | Denver7

DENVER — With a budget deficit looming over the State of Colorado next year, one program in particular is under the microscope: Medicaid.

A special session tackled some of the anticipated $1.2 billion budget shortfall, which was created in part by tax changes made in President Donald Trump’s One Big Beautiful Act (H.R.1). As a result, Colorado will collect less revenue than expected when lawmakers approved the state budget in May.

Some of that $1.2 billion revenue loss was absorbed by the state education fund and the affordable housing fund. Around $300 million that the state had in surplus, which would have been refunded to taxpayers, will be used to help fill the gap.

During the special session, lawmakers cut corporate tax breaks by about $250 million. They left it to Gov. Jared Polis to make spending cuts and to determine how much to borrow from state reserves.

Just after the special session concluded, Polis announced a total of $250 million in cuts and redirected spending in order to balance the state budget.

The Department of Health Care Policy and Financing (HCPF), which administers Colorado’s Medicaid program, makes up roughly one-third of the total General Fund appropriations for the next fiscal year. Polis called Medicaid the “fastest-growing part” of the budget when he presented his proposal to the Joint Budget Committee (JBC) last week.

The JBC is a group of Colorado lawmakers tasked with preparing budget recommendations for the General Assembly every year.

HCPF will see more than $79 million in cuts. About $38 million of that will come from freezing an increase in provider reimbursement rates that kicked in on July 1.

Then, an executive order from the end of October “initiated an additional $537 million in budget reductions to HCPF, most of which will begin this fiscal year to quickly realize savings to address the state’s current and future budget challenges,” according to the department.

HCPF has proposed several changes within budget requests targeted at saving money and the sustainability of programs. Their proposal was guided by a certain framework created by the department that aims to “avoid draconian cuts.”

However, families and providers who rallied on the steps of the Colorado State Capitol on Tuesday morning believe the proposed cuts to Medicaid would be devastating.

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