DENVER - Today, Governor Polis and the Office of State Planning and Budget (OSPB) presented the economic forecast to the Joint Budget Committee. The economic forecast projects tariff taxes to continue to hurt the economy, impact job growth, cause uncertainty for businesses, and increase the likelihood of a recession.
“Trump’s disastrous tariff taxes continue to wreak havoc on our economy and the erratic trade policy is projected to continue hurting our economy, slowing job growth, and increasing chances of a recession. These national circumstances present a difficult economic environment for the state. Despite this, Colorado continues doing all we can to support local businesses, save Coloradans money, and support prosperity in communities across the state.,” said Governor Polis.
The forecast shows rent in the Denver area has declined over the past year and grown more slowly than the national average over the past five years, reflecting the success of Governor Polis’s housing reform work and removing barriers to new housing.
Under this forecast and national trade and economic environment, the General Fund is projected to be $24.5 million below reserve level in 2024-25 and $40.9 million in 2025-26. TABOR surpluses of $224 million, $289 million, and $536.4 million are expected in fiscal years 2024-25, 2025-26, and 2026-27 respectively.
Governor Polis remains deeply concerned by the disastrous budget bill passed by House Republicans and now being debated in the Senate which would make devastating cuts to Medicaid and SNAP, throwing Coloradans off health care, increasing costs of health care on everyone else, ripping food access away from families, while forcing the states to foot the bill. Governor Polis has called on the Senate to reject this Republican proposal and start from scratch removing deep cuts to Medicaid, SNAP, clean energy and more. These federal cuts could create devastating impacts on Colorado’s budget environment.
If the federal reconciliation bill passes, cuts to Medicaid and SNAP could increase the cost to the state by $350 million (Medicaid) and $300 million (SNAP).
View the forecast, slides, and supplemental materials, or visit www.colorado.gov/governor/economics to view these materials.
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