Editor's note: An original version of this story said the hiring freeze would be extended, but the governor's office told Denver7, it's only requesting an extension of spending cuts.
Colorado Governor Jared Polis is requesting an extension of spending cuts through the end of February.
The governor's office sent a letter to the Joint Budget Committee, but could not specify what cuts would be made to specific programs. The hiring freeze will end on Dec. 31 as originally planned, according to the governor's office.
The Joint Budget Committee will have to approve the governor's requested changes to the state budget.
Gov. Jared Polis first announced a state hiring freeze on August 6 to address a $1.2 billion reduction in state revenue for Fiscal Year 2026 that the governor said was created by the One Big Beautiful Act (H.R.1), championed by President Donald Trump. As a result, Colorado was projected to collect less revenue than lawmakers expected when they approved the state budget in May.
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.
Polis called for a special legislative session on August 6, as well, to gather state lawmakers so they could make the needed changes to the Colorado budget.
The special session was held later that month. 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, was used to help fill the gap. That left lawmakers with a budget gap estimated to be around $783 million.
Lawmakers agreed to 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. He made a total of $250 million in cuts and redirected spending in order to balance the state budget.
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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