“Even worse than we thought”: Colorado is stuck in a cycle of annual, $1B state budget shortfalls
Each year the cycle continues, state lawmakers will have fewer ways to address the gap without cutting state programs and services. Skyrocketing Medicaid costs are primarily to blame.
Published: 11/17/2025 Updated: 11/19/2025
Author: Jesse Paul
Colorado lawmakers are stuck in a cycle of annual budget shortfalls of roughly $1 billion, predominantly caused by the skyrocketing cost of Medicaid.
That was the warning last week from the top nonpartisan staffer for the legislature’s Joint Budget Committee, which is tasked with drafting the state budget. JBC Staff Director Craig Harper called the trend “alarming.”The shortfalls come from how much money lawmakers have to spend each year growing more slowly than the cost of maintaining existing state programs and services.