Colorado lawmakers sent several bills to the governor’s desk on day four of the special session. Legislators are trying to plug a $750 million budget hole after President Trump’s “Big Beautiful Bill” lowered taxes.
Democrats, who control the legislature, are raising taxes on businesses to make up about half the shortfall. In addition to lost tax revenue, lawmakers are also addressing the loss of federal health insurance subsidies.
Democratic State Sen. Iman Jodeh and State Sen. Kyle Mullica begged members of the Senate Finance Committee to pass a bill that impacts the lives of nearly 300,000 Coloradans who rely on federal subsidies to afford health insurance. Those subsidies expire at the end of the year. Premiums are expected to increase by an average of 28%.
Colorado Insurance Commissioner Mike Conway says in many rural and mountain communities, families will see rates soar by up to $24,000 a year. “I cannot stress to you how terrible this is about to be for folks. It’s going to be awful. There really are going to be people that are making a choice of keeping their family members’ access to cancer treatment, any number of different things, or paying their mortgage. The stories that are about to come across your desk are going to be truly terrible.”
The bill by Jodeh and Mullica allows the treasurer to sell up to $100 million in discounted tax credits. The state could use the money now to offset the loss of subsidies, while businesses that buy the credits would use them later to lower their tax liability.
“To me, this is kicking the can down the road, selling tax credits rather than actually cutting spending,” said Republican State Sen. Lisa Frizell. She worries about the long-term impact on the budget.
Mullica is concerned about the immediate impact on families, “To just sit on our hands and do nothing is not an option.”
Lawmakers on both sides of the aisle have noted that none of the options in this special session are good. The Senate Appropriations Committee struggled with a bill raising taxes on restaurants and retailers, along with a bill to repeal a highly controversial artificial intelligence law. But the replacement could cost the state about $5.5 million.
“I worry that we are rushing through something in this extraordinary session that will cause us to potentially pass some legislation that has a lot of unintended consequences,” said Democratic State Sen. Judy Amabile.
Another bill in the House would simply delay implementation of the law. It’s unclear if either will pass.
The legislature sent three bills to the Governor that:
– Allow state Medicaid to cover Planned Parenthood services after a federal cut.
– Transfer overflow funds from a school meals program to food stamps, with voter approval.
– And require the governor to consult with the legislature before making any spending cuts.
Shaun Boyd
Dining and Cooking