Editor's note: An original version of this story incorrectly stated that a state hiring freeze would be extended through February. While Monday's executive order states that it extends measures put in place in previous orders, it does not extend Executive Order D 2025 009 that convened a special session and implemented a hiring freeze.
Colorado Gov. Jared Polis in an executive order on Monday extended already-issued spending cuts through the end of February in an effort to achieve the $265 million in savings his office says is needed to balance the state's budget.
Executive Order D 2025 22 extends orders Polis issued in August and October of this year, which ultimately laid out roughly $115 million in cuts from state departments and another roughly $148 million in transfers to the state's general fund.
The prior orders expired on Nov. 30.
A hiring freeze put in place by a separate order (D 2025 009) ends on Dec. 31, 2025. The state says that hiring freeze achieved $3 million in savings.
Polis has said the $265 million in savings is needed due to a massive budget gap created by President Trump's "Big Beautiful Bill" signed in July.
The Joint Budget Committee will have to approve the governor's requested changes to the state budget.
Gov. Polis convened a special session in August in response to the federal spending bill. Some of the estimated $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, was used to help fill the gap. That left lawmakers with a budget gap estimated to be around $783 million.
Current Colorado law allows the governor to end or pause state agency functions for up to three months if state revenue will be insufficient to continue state government functions for the current fiscal year.
It does not give the governor authority to make budget transfers. Polis's orders, including Monday's, though, have offered a dozen recommendations for transfers he says are "specific line item reductions that can be made with the least possible impact to state programs and services."
Those recommendations – the same requests made October's order – include:
- Diversion of OEDIT Prop 123 Funds to general fund: $105,000,000
- CollegeInvest Administration Fund: $9,200,000
- Discretionary Account of ARPA Refinance State Money Cash Fund: $5,400,000
- Disability Support Fund: $5,000,000
- Community Impact Cash Fund: $5,162,373
- School and Child Care Clean Drinking Water Fund: $4,000,000
- Small Business Recovery and Resiliency Fund: $4,000,000
- Local Government Severance Tax Fund: $3,305,993
- Mobile Home Water Quality Fund: $3,000,000
- Severance Tax Perpetual Base Fund: $1,652,996
- Severance Tax Operational Fund: $1,652,996
- Marijuana Tax Cash Fund: $500,000
The One Big Beautiful Act (H.R.1) is anticipated to reduce state revenue by $700 million in fiscal year 2027 and fiscal year 2028 as well.
Prior coverage:
- Colorado budget cuts may reduce health care access
- State lawmakers return to Colorado Capitol for special session to address massive budget gap
- Colorado faces new $1.2 billion budget shortfall: 'No money to pay our bills'
- Colorado lawmakers propose $43.9 billion state budget in effort to close $1.2 billion shortfall
- State workers worry about what impact Colorado's hiring freeze will have on various agencies
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