NEWS BRIEF
The Denver Post reports that forecasts from legislative and governor’s office economists project a roughly $1.5 billion Colorado general fund shortfall for fiscal year 2027-28 if lawmakers return the reserve to 15%. At the current 13% reserve level, the projected gap would be about $1.2 billion.
Medicaid costs are identified as a primary driver. The state agency overseeing Medicaid overspent its general fund budget by $158 million in the last fiscal year and is projected to overspend by $443 million in the current fiscal year unless lawmakers make additional cuts. The governor is expected to present a budget proposal in November.
What to know
Colorado’s projected budget gap depends in part on the reserve target: economists estimated about $1.5 billion at a 15% reserve and about $1.2 billion at the current 13% level. The forecasts may change as budget decisions are made.
Reporting: Robert Tann · The Denver Post · 09-18-2026
