DENVER — Colorado state lawmakers returned to the Capitol on Thursday for a special legislative session, working to address a $1.2 billion budget shortfall caused by federal tax law changes. The session, expected to last at least five days, kicked off with eight committee hearings on the first day alone, as lawmakers rush to pass 30 bills in just a few days.
Tax Changes Trigger Budget Crisis
The revenue shortfall stems from tax changes in the “One Big Beautiful Bill Act”, which reduced state tax collections by roughly $1.2 billion. Lawmakers remain deeply divided on how to fix the issue:
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Republicans’ View — Senator Barbara Kirkmeyer argued that tax relief passed by Congressional Republicans lowered overall state revenue, with $840M in cuts from individuals and $34M from corporate taxes, saying, “Doesn’t sound like they’re going after the wealthy.”
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Democrats’ View — Senate President James Coleman blamed former President Donald Trump and Republicans, stating the shortfall stems from “tax breaks for corporations and the ultra-wealthy”, drawing boos from attendees.
Proposed Solutions on the Table
To close the gap, lawmakers are considering several measures:
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Using $200M to $300M from the state’s reserves
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Repealing certain corporate tax breaks to recover $300M to $400M
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Cutting $300M from various areas of the state budget
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Introducing a bill requiring the governor to notify the Joint Budget Committee before making budget cuts via executive orders
What’s Next
This marks the third consecutive year lawmakers have convened an extraordinary session to tackle budget challenges. With tensions high between parties, lawmakers aim to balance the budget while minimizing cuts to essential services.
The special session continues into next week, with more hearings and debates expected before final votes on the proposed bills.
Katie is a senior who has been on staff for three years. Her favorite type of stories to write is reviews and features. Katie’s favorite ice cream flavor is strawberry.
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