NEWS BRIEF
Sentinel Colorado reports that state economists told lawmakers Colorado could face a nearly $1.6 billion budget deficit when the Legislature convenes in January. Officials identified Medicaid cost growth as the main driver, with long-term care and prescription drugs among the factors increasing spending. The Governor’s Office of State Planning and Budgeting said limiting Medicaid growth and reducing the reserve fund level could narrow the projected gap. Lawmakers will consider budget decisions in the coming months.
What to know
The projected deficit is a forecast, not a final budget decision. State officials said Medicaid spending is growing faster than Colorado’s TABOR-limited spending, and potential responses could include changes to Medicaid services or reserve funding.
Reporting: Sara Wilson, Colorado Newsline · Sentinel Colorado · 09-18-2026
