DENVER — For the second year in a row, Colorado is staring down a daunting budget deficit — and the governor believes cuts to Medicaid are one solution to balancing the budget.
The solution, however, feels more like a problem for many Colorado families worried about what it may mean for the future.
Every year, the Joint Budget Committee (JBC) is tasked with preparing budget recommendations for the General Assembly. The group of Colorado lawmakers are provided with budget requests from all executive and judicial departments by November 1.
Governor Jared Polis presented his budget proposal to the JBC on Wednesday morning.
The presentation began by setting the stage for the situation, where Gov. Polis cited the federal government shutdown, tariffs, and H.R. 1 (One Big Beautiful Bill Act) as factors that hurt Colorado's budget.
"These actions, combined with large increases in Medicaid costs, are straining the General Fund. Difficult choices are needed to address these impacts and protect the progress we have made," Gov. Polis said in his presentation.
A special session was held in August to address the state's $1.2 billion budget hole, which was created 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 now be used to help fill the gap. That left lawmakers with a budget gap estimated to be around $783 million.
Democratic legislative leaders and Polis had a three-pronged approach to address the budget gap:
- Cut special corporate tax breaks
- Dip into the state's reserves
- Make spending cuts
During the special session, lawmakers cut corporate tax breaks by about $250 million. They left it to Polis to make the 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.
As a result, in part, 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."
As part of that framework, data analytics were employed to find trends in cost increases and examine why those increases were occurring.
"Medicaid is the fastest growing part of this budget that we present, considerably faster than education spending, the other big element," Polis told the JBC on Wednesday. “You have to dig deeper within Medicaid. There are some costs that are not increasing more than others, and there are some that are... There's some elements of Medicaid that have remained static and are sustainable. There's other aspects that are not. We can't just paint Medicaid with one broad stroke."
According to Polis, his proposal would protect the 1.2 million eligible Coloradans who are covered by Medicaid, as well as those who qualify in the future.
The overview of the budget requests for Fiscal Year 2026-27 reports that caseload costs within Medicaid are "growing faster than revenues will allow without crowding out other uses of the General Fund." It continues to say that since Fiscal Year 2018-19, the General Fund appropriations for Medicaid have "grown far faster than inflation."
Members of the JBC had concerns about Polis' proposal following the presentation.
“My concern about the cuts that have already been made, and about what we're looking at going forward, is that we are impacting our most vulnerable populations in the state," said State Senator Judy Amabile, a Boulder Democrat. “Some of the people who have been reaching out to me have been talking about how they have a person that they care for that requires 24/7 care. They will literally not be able to survive... I just wonder what the long-term consequences are of the decisions that we're making today that will restrict the kind of care that our most vulnerable populations are getting. And whether we are going to be driving more people into institutional settings, which are a lot more expensive than having people receive care in a less restrictive setting.”
State Senator Barbara Kirkmeyer, a Republican who represents Larimer and Weld counties, said she did not have many questions for Polis. Instead, she had comments she wanted the committee to consider.
“Last year, I asked you why I should think your budget was serious. This year, I definitely don't think this budget is serious," Kirkmeyer said. "We know where you used to balance the budget on the backs of students. Now you're balancing the budget on the backs of people who rely on Medicaid, and you're jeopardizing health care for everybody.”
Kirkmeyer called on the JBC to "do the right thing" and "build a budget that works for the people of this state.”
Denver7 asked Polis for a response to Kirkmeyer's comments. His team sent Denver7 the statement below:
Gov. Polis is doing everything he can to lower the cost of healthcare. Senator Kirkmeyer can’t have it both ways and has generally voted to expand the size of government — pushing the state to make unsustainable spending decisions, and ignoring the impacts of H.R. 1 and the disastrous effects it will have on Coloradans’ access to healthcare. Governor Polis submitted a responsible, balanced budget proposal that fully funds schools, funds public safety improvement and increases funding for Medicaid to ensure our most vulnerable Coloradans continue to have access to the care they need and deserve, now and in the future.
Meanwhile, 3-year-old Jackson Roberts was preparing for his weekly physical therapy appointment.
"Jackson, he cannot independently walk on his own, and so this is just kind of building that stability and the muscles that he needs in his legs to build up the endurance," said his mother, Ciara Stewart. "Jackson has two extremely rare genetic mutations, and that has caused a multitude of brain deformities, severe developmental delays. "He is nonverbal. He is nonambulatory. But outside of all of the craziness that we endure, you know, Jackson is a smart, happy and joyful kid who's full of potential.”
This year alone, Stewart said her son had spinal and eye surgery.
"It’s hard because I'm doing everything I can to give him every single opportunity to thrive and to grow and stand up, to be included in everyday activities," Stewart said. “Being a first-time mom, this is not exactly what you dreamt of life to be, and you just have to like mold to the new reality and become the better version of the parent that your special needs child needs you to be.”
Stewart told Denver7 Medicaid has been their lifeline.
“If it wasn't for Medicaid and these programs, we wouldn't be able to afford these things for him," Stewart said.
Stewart fears for the future of Medicaid in Colorado, specifically when it comes to Community Connector Services, a program that supports children learning how to safely and independently access their communities.
"What affects my son the most is Community Connector cuts that allows us to engage in the community in a safe way, and it gives us those resources that we need to be successful in an environment that's not entirely sculpted for children like my son," Stewart said.
According to a funding request from the HCPF for Fiscal Year 2026-27, a solution to the budget deficit would be removing access to those Community Connector services for members who are under 6 years old.
"This will ensure that parental responsibilities are taken into account with this service, while allowing age-appropriate members to make meaningful connections within their communities," the document states.
Stewart disagrees.
“Community Connector doesn't replace a parent responsibility. It empowers it, at the end of the day," she said. “It is a blessing and a half to see my son be able to navigate our home and communities and his school more independently.”
Ultimately, Stewart believes cuts to Medicaid would be felt throughout the entire Colorado community.
"I understand that budget cuts have to happen, and I just hope that they just don't end up being as drastic as what it's looking like. Because it's not just my family, it's thousands of families, thousands of disabled children, thousands of disabled adults," said Stewart. “It's not just an effect on families. It ripples through the economies and our communities as well.”
What exactly the future holds for Colorado health care programs is still uncertain, since the budget process is far from over.
In January, state departments can request adjustments to their appropriations from the JBC for the fiscal year ahead. Such requests are called supplementals, which are bills that can be introduced into the legislative session in early February.
Once the JBC has settled on their recommendations, the result is the Long Bill — the legislation that details the state budget. That is typically introduced into the session by late March or early April.
Related coverage:
- Colorado lawmakers empower Gov. Polis to make deep spending cuts
- State lawmakers return to Colorado Capitol for special session to address massive budget gap
- Colorado Gov. Jared Polis announces special session, state hiring freeze to address $1.2B loss of revenue
- Colorado faces new $1.2 billion budget shortfall: 'No money to pay our bills'
- Colorado Republicans, Democrats disagree on how much progress was made during special session
