Colorado lawmakers are back for the annual 120-day legislative session, and according to Colorado Newsline, the magic word for 2026 is (drumroll) “affordability”. Leadership says they’re aiming for a Colorado where families can afford housing, health care, child care, and higher education. Republicans say they’re hearing the same affordability concerns, plus crime.
But the actual headline hiding underneath the warm-and-fuzzy quotes: the state has an estimated $800 million budget gap between “funding government at the current level” and what Colorado “actually has to spend.” And the biggest driver, per the report, is ballooning Medicaid costs outpacing Colorado’s revenue growth and the TABOR spending cap.
Welcome back to the Capitol: same buzzwords, bigger math problem
Senate President James Coleman told reporters the goal is a Colorado where “high-quality health care is accessible to all without breaking the bank,” and where “every hard working family can afford housing, health care, child care and higher education.” House Majority Leader Monica Duran added Colorado Democrats are “laser focused… to pass legislation that will drive down costs.”
Okay. Sure. Totally. Great plan.
But here’s the part that keeps punching taxpayers in the face: you can’t slogan your way out of a budget shortfall. And you definitely can’t “drive down costs” while simultaneously feeding every program’s appetite like it’s an all-you-can-eat buffet with no price tags.
Another budget shortfall. Again. Because of course.
Newsline reports lawmakers need about $800 million in cuts to pass a balanced budget. Coleman said it won’t be easy, but both parties must “protect the services our constituents need.”
Meanwhile, House Minority Leader Jarvis Caldwell laid out the core fork in the road: cut spending or raise revenue. He says his position is cutting spending. (We’ll see how long that lasts once the building fills up with lobbyists carrying “urgent priorities” and PowerPoints.)
Last year’s shortfall was $1.2 billion, and lawmakers made it work with one-time cuts and accounting maneuvers. This year, Newsline says many of those levers aren’t available. Translation: fewer gimmicks, more pain. Or more “creative conversations” about money.
Medicaid ate the budget, and now TABOR is the villain again
The article is blunt about the driver: Medicaid costs. Coverage and use expanded while the cost of care rises. Medicaid costs have grown faster than the TABOR cap and now make up the biggest share of the budget, and it’s projected to worsen.
Gov. Jared Polis wants a strategy to curb Medicaid cost growth. His proposed budget suggests a $300 million increase next fiscal year—Newsline notes that’s less than half the projected cost increase.
House Speaker Julie McCluskie called it an “explosion in Medicaid expenses” and said there “isn’t a way for us to get out of this budget situation except to tackle health care.” She also said Colorado should consider adjusting the spending cap: “Thirty years after TABOR… it’s time that we have that conversation.”
Let’s translate the political dialect. When politicians say “have a conversation” about TABOR, what we usually hear is: “Let’s see if we can keep more of your money without asking you nicely.”
Union bill redux + the AI law mess: reruns nobody asked for
Newsline reports Democrats will again vote on a bill to repeal the state’s Labor Peace Act, a 1940s law requiring a second union election for certain bargaining. Last year it passed unchanged and Polis vetoed it. This year: same movie, same characters, same tension with the governor’s office.
Also back on the menu: Colorado’s artificial intelligence anti-discrimination law set to go into effect in June. Businesses and tech companies worry it’s too rigid and could stifle innovation; supporters want bias safeguards and transparency when AI is used in major decisions like employment and finances. A prior attempt to tweak the law failed, and after special-session talks broke down last summer, lawmakers pushed back implementation—buying themselves time to “find a path forward.”
Senate Majority Leader Robert Rodriguez says he wants to solve the “AI puzzle once and for all.” Which is adorable. Because nothing screams “we nailed it” like passing a controversial law, failing to fix it, punting in a special session, delaying it, and then promising you’ll definitely solve it this time.
Election year + ethics investigation: the background noise is the point
This is the final session for McCluskie and Duran in the House and the final year for Rodriguez in the Senate. It’s also Polis’ final session as governor. And lots of lawmakers are campaigning for higher office while still supposedly doing the job we’re paying them for.
Newsline also notes an ethics investigation into a weekend retreat attended by members of the Colorado Opportunity Caucus (moderate Democrats). The complaint alleges 16 lawmakers violated the state gift ban by allowing a “pro-business dark money group,” One Main Street, to help pay for the gathering. The inquiry could deepen rifts inside the Democratic caucus.
So yes—affordability, budget cuts, AI, labor policy. And also the classic Capitol side-quest: “Who paid for the retreat and did it break the rules?” Colorado governance, baby.
Where we’re at
We’re not confused about what’s happening. The Legislature is walking into a session dominated by a budget hole, exploding health care costs, and an itch to blame TABOR for the consequences of decades of spending decisions. And while they’re busy promising affordability, they’re also replaying last year’s fights (Labor Peace Act), trying to un-knot a law they already passed (AI), and campaigning for their next job.
We’ll be watching who votes to cut, who votes to raise, and who pretends “conversation” isn’t code for “more government.”
Watch it live, then tell us what you see
Want to watch the sausage get made? Newsline points out you can view live and archived streams via the Legislature’s site and YouTube. If you see a serious plan to balance the budget without soaking taxpayers—or if you see another TABOR end-run dressed up as “reform”—send it our way.
Drop your predictions in the comments: what will they cut, what will they “adjust,” and what will they rename so it sounds compassionate?
Source: Colorado Newsline
Just Stop It
