Colorado Budget Gap Exceeds $1.5 Billion as Forecast Split Derails Timeline

Lawmakers must choose a revenue forecast that will set the scale of cuts required to balance the budget under TABOR.

Overview

Nonpartisan Legislative Council Staff now pegs the deficit at about $1.47 billion even after initial trims, pushing the total shortfall above $1.5 billion.
The governor’s budgeting office projects nearly $700 million more in tax revenue than LCS, forcing the Joint Budget Committee to select a baseline for the spending plan.
LCS lowered its current‑year revenue outlook by roughly $350 million, pointing to weaker corporate income tax receipts and added uncertainty.
Budget writers signaled they are unlikely to complete a draft next week and are preparing deeper reductions, including to Medicaid, which is driving higher costs.
Both offices still expect TABOR surpluses that must be refunded rather than used to close the gap, and April 15 tax filings could shift the revenue picture.