Forecast Reveals Budget Crisis After Years of Fiscal Irresponsibility

(Denver , CO – June 24, 2025)
– Representative
Rick Taggart
(HD 55) responded to the June 2025 economic forecast by raising alarm over the long-term consequences of unsustainable state spending. The forecast reveals that, despite being technically balanced, the FY 2025–26 budget falls $83.6 million short of meeting the statutory reserve requirement, with future budgets facing even greater strain.
“This forecast reflects the consequences of years of aggressive budgeting without sufficient long-term planning,” said Rep. Taggart. “We are now seeing the structural weaknesses that result from spending to the limit year after year, without setting enough aside for changing conditions.”
The forecast shows that several recently passed tax credits—intended to support families, workforce development, and environmental innovation—are already being scaled back due to falling revenue projections. The state’s reserve cushion is thin, and even modest economic shifts could push Colorado into a budget shortfall.
In FY 2026–27, the situation becomes even more serious. Current law obligations are projected to drive a General Fund reserve shortfall of at least $700 million—a moderate estimate that could climb as high as $1.2 billion. For the first time, the state will also be forced to cover constitutionally required senior and veterans property tax exemptions from the General Fund due to insufficient TABOR surpluses.
“These are not just numbers on a page,” Taggart said. “This means fewer resources for our schools, our roads, and our most vulnerable communities.”
Rep. Taggart emphasized the need to return to responsible budgeting focused on core services and long-term stability.
“This is a moment to re-center our budgeting around core priorities,” Taggart said. “We must protect taxpayers, preserve vital services, and make sure our state is financially resilient in the years to come.”