DENVER - Today, Governor Polis presented a balanced budget proposal to the Joint Budget Committee, focused on ensuring financial stability for Colorado’s budget while protecting critical investments in the issues Coloradans care about most, like education and public safety.
“Unlike Washington, D.C., Colorado puts forward a balanced budget every single year. Our balanced budget protects important investments in our schools and law enforcement, while ensuring fiscal sustainability so the state can weather any future downturns. Despite the harm caused by H.R.1, I am proud of the progress we've made in Colorado and look forward to working with the JBC to protect the investments we've made and build on that work for every Coloradan,” said Colorado Governor Jared Polis.
The Governor’s 2026-27 budget proposal includes:
- $167 million in state funding for school finance, while continuing to move towards a more student-centered approach to total program funding
- Implements 30 percent of the new school finance formula in FY 2026-27 while moving to a three-year average enrollment method for the calculation of Total Program funding, as put in place by H.B. 25-1320
- Increases per pupil funding by $413 over FY 2025-26 to a total of $12,272. More than 50 percent higher funding per pupil compared to the beginning of the Polis administration
- Increases Universal Preschool funding by $14.3 million for School Year 2026-27 to serve all children enrolled in the initiative, especially the most vulnerable children in full-day preschool.
- $7.1 million for the State’s emergency preparedness, response, and recovery efforts if the federal government continues to withhold funding.
- Begins Proposition 130 fund transfers for local law enforcement
- Slowing the year-over-year growth of state funding for Medicaid to 5.6 percent in FY 2026-27, which is significantly lower than the double-digit growth rates observed over the past several years, but still a faster pace than virtually every other state program. A 5.6 percent annual growth rate still represents an annual funding increase of $297.7 million in the state General Fund relative to the current Long Bill appropriation
- This budget proposes that the State maintain a budget reserve equal to 13 percent of General Fund appropriations for FY 2026-27
- A spinoff and conversion of Pinnacol that would remove coverage barriers and allow Pinnacol to better support the needs of Colorado employers and workers in a modern economy.
Coloradans voted to approve propositions LL and MM to help ensure all kids are fed at school, no matter what, and this budget reflects that commitment. With this passage, additional funds will be available to support SNAP administrative costs that reduce pressures on the General Fund. The November submission didn’t assume Prop MM or LL’s passage, these changes will be reflected in the Governor’s January budget submission. that it has, there are additional funds available to support SNAP administrative costs that reduce pressures on the General Fund.
Read the Governor’s budget letter and updated slides.
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