Colorado Gov. Jared Polis Calls Special Legislative Session to Address Budget Gap

Colorado state lawmakers will reconvene at the Capitol on Aug. 21 for a special legislative session to address the nearly $800 million gap in the current state budget caused by provisions in the recent federal domestic policy law. The session comes as a result of changes in the federal tax code, which will result in significant losses to expected state revenue. The special session will aim to fill the budget hole, and Colorado Gov. Jared Polis has also instituted a hiring freeze in the state government until the end of the year to mitigate the impact.

Key Takeaways:

• The special legislative session will focus on addressing the nearly $800 million gap in the current state budget caused by provisions in the recent federal domestic policy law, specifically the changes in the federal tax code.
• The changes in the federal tax code will result in significant losses to expected state revenue, with predictions ranging from $680 million to $783 million.
• The special session will consider legislation to issue tax credits to large taxpayers, expand the list of foreign countries where companies cannot send income to avoid taxes, and decouple Colorado from various federal tax deductions.
• The state can tap into its budget reserves, which stand at 15%, but lawmakers will need to repay that money later on.
• The governor's office is also suggesting spending cuts in existing programs and services, and Polis wants lawmakers to lower the threshold for restricting spending when the state's reserves are expected to fall below half of the required level.
• The special session will also address the state's artificial intelligence anti-discrimination law, which is set to go into effect in February, and consider tweaking ballot language for an initiative to retain more revenue for universal school meals.

Statistics:

• The budget gap caused by the federal domestic policy law is estimated to be between $680 million and $783 million.
• The state's budget reserves stand at 15%.
• The governor wants to lower the threshold for restricting spending when the state's reserves are expected to fall below half of the required level, which is over $1.2 billion.
• The special session will last at least three days, the minimum time required for a bill to pass both chambers.

Sources:

• Colorado Newsline: "Colorado lawmakers to head back to Capitol for special legislative session"
• Colorado Newsline: "Polis announces special session to address budget gap"
• Colorado Newsline: "Repub: Fourth-of-July Trump signs bill"
• Colorado Newsline: "Budget crisis: Colorado governor predicts $1.2 billion hit to state tax revenue"
• Colorado Newsline: "Polis to call special session, issue tax credits, decouple Colorado from federal tax deductions"