Colorado

Colorado

Budget Cycle
Annual

Governor Submits Budget
November 1 

Fiscal Year Begins
July 1 

Governor Signs Budget 
Varies 

Budget Links

FY2027 (proposed)
FY2026 (enacted)

FY2025 (enacted)

FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)

Proposed Budget - Fiscal Year 2027

On October 31, 2025, Colorado Governor Jared Polis released his recommended budget for fiscal 2027. On January 2, the governor released amendments to the budget. The amended proposal calls for $50.5 billion in total fund spending, an increase of 3.9 percent from fiscal 2026, and $18.5 billion in general fund operating spending, an increase of 1.6 percent from fiscal 2026. Gross general fund revenue in fiscal 2027 is expected to total $18.0 billion, a 6.2 percent increase from the fiscal 2026 estimate. Combined with the state’s beginning balance of $2.1 billion, total forecasted general fund resources for fiscal 2027 are $20.7 billion, a 4.7 percent increase from the fiscal 2026 estimate. The governor recommends a general fund reserve level of $2.2 billion, or 13 percent of general fund spending. 


Proposed Budget Highlights

The governor’s budget makes targeted investments to ensure Coloradans feel safe, students get a high-quality education, Coloradans get trained for and find fulfilling work, additional choices for affordable housing, and economic growth. The following recommendations are included in the budget: 

Education

  • Implements 30 percent of the new school finance formula while moving to a three-year average enrollment method for the calculation of Total Program funding. 
  • Proposes a Total Program funding increase, which increases per pupil spending. 
  • Continues to fully fund mill levy equalization for all charter schools. 
  • Increases funding for categorical programs, which provide funding to specific groups of students including special education, English language proficiency, and technical education. 
  • Proposes to transfer any dollars remaining above the statutory reserve requirement in the Marijuana Tax Cash Fund at the end of each fiscal year to the State Education Fund. 
  • Increases Universal Preschool funding to serve all children enrolled in the program. 

Higher Education and Workforce

  • Recommends an in-state tuition increase of 2.6 percent, which is equal to the inflation rate, and an out-of-state tuition increase of 3.0 percent. 
  • Continues the Zero Textbook Cost Degrees and Open Education Resources initiative for five years. 
  • Proposes a one-time increase to grants provided to organizations that support Coloradans with disabilities. 

Public Safety

  • Provides funds to the Division of Homeland Security and Emergency Management (DHSEM) to ensure the state can quickly prepare for and respond to emergencies. 
  • Recommends one-time capital construction funding for a new perimeter fence at the Delta Correctional Complex. 
  • Requests funds to ensure that resources are available for secure placements and opportunities for community-based supervision for individuals found incompetent to proceed.  

Healthcare 

  • Proposes slowing the year-over-year growth of state funding for Medicaid to 5.6 percent.  
  • Ensures funding remains available for the Relative Guardianship Assistance Program to remove barriers to adopting children and providing them with a permanent home. 
  • Recommends funds to reduce financial pressure on the Temporary Assistance for Needy Families (TANF) program to preserve services. 
  • Requests funds to improve the efficiency and processes for Colorado’s eligibility and enrollment system used for Medicaid and other programs including TANF and SNAP. 
  • Invests in Colorado’s lab facilities at the Department of Public Health and Environment to regain EPA certification. 

Renewable Energy and Environmental Preservation 

  • Proposes restructuring the operating budget of the Colorado Energy Office to provide stable, ongoing operation funding to maintain their professional staff 
  • Proposes refinancing the severance tax Operational Fund to provide more annual predictability to meet General Fund priorities and fund water projects 

Efficiency of Government Services

  • Proposes conversion of Pinnacol, the state’s workers’ compensation insurer of last resort, to cover one-time expenses including the Senior Homestead Exemption and Controlled Maintenance. 
  • Maintains a budget reserve equal to 13 percent of General Fund appropriations.