Think you're getting a TABOR refund? Think again
- Media Logic Radio
- 3 days ago
- 2 min read
Governor Jared Polis has submitted revised budget requests for the next two fiscal years, outlining new public safety spending, efforts to slow Medicaid growth, and a renewed push to privatize Pinnacol Assurance — all amid a tight fiscal outlook.
The proposal totals $48.6 billion for the 2025–26 fiscal year and $50.5 billion the following year. Polis says the state will come in about $308 million below the Taxpayer’s Bill of Rights spending cap, meaning Coloradans will not receive TABOR refunds in 2026. However, a projected surplus of about $208 million could trigger refunds the following year.
Polis blamed part of the shortfall on the federal budget bill known as H.R. 1, saying it will reduce Colorado revenue by roughly $87 million. He also called for maintaining a 13 percent budget reserve to protect against a potential recession.
A major feature of the plan is privatizing Pinnacol Assurance, the state-affiliated workers’ compensation insurer. Polis says disaffiliating Pinnacol would generate about $400 million and help fund senior property tax relief and extend the Homestead exemption, which otherwise could expire next year. Some lawmakers remain skeptical, with only one Joint Budget Committee member publicly backing the idea so far.
The governor is also requesting significant funding to address gaps in the system for people found incompetent to stand trial. The proposal includes new secure commitment beds and expanded community supervision following recent cases where individuals accused of violent crimes were released and reoffended.
Polis also outlined steps to slow Medicaid spending growth, which now accounts for about one-third of General Fund spending. While Medicaid would still grow by more than five percent, Polis says the proposal avoids deeper cuts elsewhere in state government.
Republicans argue Colorado’s budget problems stem from years of Democratic overspending, while Democrats point to actions by Republicans in Congress. The Joint Budget Committee will now begin months of debate over the governor’s proposal.
