Colorado's Budget Deficit: A Crisis of Overspending and Failed Leadership

Colorado is facing a staggering budget deficit projected at $750 million for the 2025-26 fiscal year. While some may rush to blame TABOR (Taxpayer’s Bill of Rights) or our balanced budget requirements, the truth is far more sobering. This fiscal crisis is not the result of structural limitations - it is the product of irresponsible spending, poor decision-making, and reckless expansion of government programs under one-party rule.

The hard truth about overspending is that, in recent years, Colorado’s Democratic leadership has presided over an unprecedented expansion of government spending. Programs and initiatives - many well-intentioned - have been implemented without a sustainable plan to fund them. Instead of prioritizing core services like education, public safety, and infrastructure, the majority party has chosen to pursue policies that push the boundaries of the government’s role, leading to bloated budgets and mounting obligations.

For example:

• The implementation of the “Cover All Coloradans” program - providing healthcare to illegal migrants - has ballooned from $34 million in 2022 to $51 million by 2025, with $39 million coming directly from the state’s general fund. This is money that could have supported mental health services, veteran care, or schools, yet it has been diverted to programs that benefit illegal migrants over citizen taxpayers.

• The state’s homelessness response efforts have poured millions into housing programs that lack accountability, producing minimal results while homelessness numbers continue to climb.

• Expansive new regulations on businesses have driven up compliance costs, forcing small businesses to close and reducing revenue streams that fund state services.

The result of this unchecked growth is clear: Colorado has spent itself into a corner, and now, lawmakers must face the harsh reality of cutting critical services. This budget deficit will likely lead to reductions in funding for:

• K-12 Education - already underfunded in comparison to neighboring states.

• Public Safety - leaving law enforcement agencies stretched thin as crime rates rise.

• Infrastructure Projects - delaying much-needed improvements to roads and public transportation.

• Healthcare Programs - jeopardizing care for the elderly, disabled, and low-income families.

While the state is constitutionally required to balance its budget, this mandate is often treated as a scapegoat rather than a safeguard. TABOR does not create deficits - it prevents reckless spending. It is a tool that should force legislators to govern responsibly, not an excuse to avoid accountability.

Because of this fiscal mismanagement, the upcoming legislative session will be severely restricted. Any legislation containing a fiscal note - essentially, any proposal requiring additional state funds - will be dead on arrival. This means lawmakers’ ability to address pressing issues will be paralyzed by the financial crisis created by poor governance.

Democratic leaders may attempt to frame this crisis as the product of external forces - economic downturns, inflation, or TABOR restrictions. However, the evidence points to a far different cause: failed leadership and reckless spending priorities. Instead of making hard choices and focusing on sustainable growth, the majority party pursued policies that expanded entitlements, increased regulations, and ignored fiscal responsibility.

The consequences were predictable - and avoidable. Colorado is now forced to make cuts, not because of systemic flaws, but because the Democratic majority refused to govern with discipline and foresight. Their policies have left Coloradans paying higher taxes while receiving fewer services and less security.

A Path Forward
The first step in fixing this crisis is acknowledging the truth: Colorado’s budget deficit is a leadership failure. We must return to fiscal discipline, prioritizing spending on essential services and cutting programs that lack measurable results. Additionally, we must create transparency and accountability measures to ensure every dollar spent serves the public good.

Second, we must reject partisan excuses and focus on bipartisan solutions to restore stability. That means demanding audits of state programs, freezing unnecessary spending, and pursuing pro-business policies that grow revenues without raising taxes.

Finally, we must rebuild trust with Colorado taxpayers. The public deserves leaders who respect their hard-earned dollars and govern with integrity, responsibility, and vision.

The budget deficit we face is not an accident - it is the direct result of poor leadership and reckless spending. Colorado’s families, businesses, and communities deserve better. As we head into this legislative session, let us focus on restoring fiscal responsibility, protecting core services, and ensuring that the future of Colorado is built on stability, accountability, and economic growth.