DENVER — The State of Colorado has implemented a hiring freeze in order to address its projected $1.2 billion revenue loss.
Gov. Jared Polis announced the hiring freeze on Aug. 6, the same day he called for a special legislative session in order to address the shortfall.
Polis said the revenue loss was created by tax changes made in President Donald Trump's One Big Beautiful Act (H.R.1). According to the governor and fellow Colorado Democrats, Colorado will collect less revenue than expected when lawmakers approved the state budget in May.
The state has projected a $1.2 billion budget gap for the 2026 fiscal year, and a $700 million shortfall for the 2027 and 2028 fiscal years. During his announcement, the governor said a hiring freeze would save the state $3 million to $7 million.
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Colorado WINS, a union representing more than 27,000 state employees, told Denver7 it's concerned about what's to come.
“We are really glad that there are not layoffs or furloughs planned at this time, but we've been feeling the pressure of being short-staffed and overworked for years,” said executive board member Maddie Cappa.
The union said there's currently a 20% vacancy rate at the state level. Their concern now is the trickle-down effect.
“That's only going to increase, and with the fact that employees will have to essentially make up the work for those vacant positions, it's very likely that other state employees will make the decision to leave the state,” Cappa said.
Polis said the freeze will not affect necessary health and safety positions, such as firefighters.
“We really are fully staffed up at the state level on our response capabilities for this season, and so we don't see a big hit to us right now,” said Lisa Pine with Colorado Division of Fire Prevention and Control.
The governor's office also emphasized that positions funded by TABOR-exempt funding sources, such as Colorado Parks and Wildlife and CDLE’s FAMLI unemployment insurance program, will not be affected.
Agencies across the state have been told that hiring where vacancy rates are higher than average will not be frozen.
“Right now, we just know that there will be more work for us to make up, and I think a lot of us are just mentally bracing for that,” Cappa said. “My concern is that furloughs or layoffs would be the next step."
The hiring freeze will run until the end of the year.
Polis' office issued the following statement to Denver7 on behalf of the governor:
“My office has worked closely with agency leadership and in consultation with COWINS to develop more detailed policies and procedures that will result in cost-savings while also ensuring we continue to protect public safety, care for those in our custody, and maintain other critical functions. Our hope is that these proactive measures will prevent more severe actions such as furloughs or layoffs. This isn’t a decision I wanted to make, but unfortunately H.R. 1 is forcing the state to make difficult budget decisions, and the Executive Branch is looking at what we can do to practice what we preach and do what we can to alleviate the financial burden created by the federal government.”
