State budget faces $900M shortfall as tax cuts, Medicaid and economic slowdown take toll

By Brian Eason | The Colorado Sun

After Colorado lawmakers passed four rounds of tax cuts in 10 months, the state now faces a $900 million budget hole.

The tax cuts are kicking in as inflation, wage growth and consumer spending cool off and unemployment ticks up — all factors that will reduce state tax collections and how much it can spend under the state’s revenue cap even as demands on the state budget are growing.

State economists Thursday briefed the Joint Budget Committee on their quarterly revenue forecasts, the first since lawmakers passed a new round of property tax cuts during an August special legislative session.

READ THE FULL STORY AT THE COLORADO SUN