DENVER ~ In a recent presentation to the Joint Budget Committee, Governor Polis and the Office of State Planning and Budget (OSPB) shared their economic forecast for Colorado. The forecast highlighted the continued negative impact of tariff taxes on the state's economy, job growth, and business uncertainty. It also warned of a potential recession in the near future.

Governor Polis expressed his concerns about the ongoing effects of President Trump's tariff policies, stating that they have caused havoc on Colorado's economy and slowed down job growth. He also acknowledged that these national circumstances have created a challenging economic environment for the state. Despite this, he reassured that Colorado is doing everything possible to support local businesses and promote prosperity in communities across the state.

The economic forecast also revealed some positive news for Denver residents. Rent prices in the area have declined over the past year and have grown at a slower rate than the national average over the past five years. This was attributed to Governor Polis's efforts in housing reform and removing barriers to new housing.

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However, under this forecast and considering the current national trade and economic environment, it is projected that Colorado's General Fund will fall below reserve levels by $24.5 million in 2024-25 and $40.9 million in 2025-26. On a more positive note, TABOR surpluses of $224 million, $289 million, and $536.4 million are expected in fiscal years 2024-25, 2025-26, and 2026-27 respectively.

Governor Polis also expressed his deep concerns about a budget bill passed by House Republicans that is currently being debated in the Senate. He stated that if passed, it would result in devastating cuts to Medicaid and SNAP programs, which would not only throw Coloradans off health care but also increase healthcare costs for everyone else. The bill would also rip food access away from families while forcing states to bear the financial burden. Governor Polis urged the Senate to reject this proposal and start from scratch, removing the proposed cuts to Medicaid, SNAP, and clean energy.

The economic forecast also highlighted the potential impact of federal cuts on Colorado's budget environment. If the federal reconciliation bill is passed, it could result in an additional $350 million cost for Medicaid and $300 million for SNAP.

The forecast, along with slides and supplemental materials, can be viewed on the governor's website at www.colorado.gov/governor/economics. As Colorado continues to navigate through these challenging economic times, Governor Polis remains committed to supporting local businesses and promoting prosperity in communities across the state.

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