The Colorado Legislature is unlikely to approve new programs that create additional spending obligations this year as lawmakers face a sizable budget gap.

“New programs, obviously, are going to be out of the question. We need to work with the existing constraints we have and get creative,” House Majority Leader Monica Duran, a Wheat Ridge Democrat, said in an interview Colorado Newsline conducted with Duran and Senate Majority Leader Robert Rodriguez, a Denver Democrat, ahead of the beginning of the legislative session on Wednesday.

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“This is an issue for all of us. Where can we cut back, while making sure that for those who are most vulnerable and need a lot of the services that we have — how can we continue them?” she said. “Everyone has to be willing to sacrifice.”

Estimates vary, but recent economic forecasts from nonpartisan state economists show a state budget deficit of around $750 million, and it could be smaller. It’s better than an original estimate of nearly $1 billion, but it will challenge lawmakers to pass a constitutionally-required balanced state budget while still funding priorities like public education and health care. Money — and how little leeway the state has with it — will be a major theme of the 2025 regular session.

The budget woes are caused, in part, by constitutional limits on governmental spending growth set under the Taxpayer’s Bill of Rights, growing spending on Medicaid, and a series of recent tax cuts. There is also the absence of pandemic-era cash infusions from the federal government.

Members of the state’s Joint Budget Committee have talked about finding ways to cut spending in various grant programs and new pilot programs passed by the Legislature in recent sessions.

“There are things we’ve done over the years that maybe we could hold (off on) until we’re out of this hole,” Senate Majority Leader Robert Rodriguez, a Denver Democrat, said.

Protections against Trump administration

Additionally, voters in November approved Proposition 130, which requires the Legislature to set aside $350 million for law enforcement recruitment and retention. The measure did not specify when or how the money must be spent — or if it must be spent all at the same time — which gives lawmakers some flexibility in how to implement the voters’ will during this budget crunch. Both Duran and Rodriguez signaled support for a phased-in implementation of that funding.

“I’m sure that the people of Colorado understand, considering the situation that we’re in,” Duran said. “We’re being realistic.”

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Democrats this session will also likely pursue protections against potential actions from the second administration of Republican President-elect Donald Trump. This would be similar to Colorado passing the Reproductive Health Equity Act to protect abortion access in 2022 ahead of the U.S. Supreme Court decision to overturn Roe v. Wade later that year.

Advocates and community organizations are specifically worried about rollbacks of health care access for transgender youth and the threat of mass deportations of undocumented immigrants. Trump spoke about both policies during the campaign.

“(We’re) trying to anticipate what the new administration is going to be bringing federally … just trying to anticipate what that’s going to look like, and to be proactive as much as we can, because we really don’t have anything solid yet,” Duran said.

She did not offer specific policy examples when it came to immigrant protections, but she said she is excited to see what lawmakers offer during session.

“Working with advocates and community is really important, and that’s who we’ve been talking with to make sure that we protect those who have been here, who are investing in our economy, who are part of our workforce, and have come here for a better life and better opportunity,” she said.

The Legislature reconvenes Wednesday. Democrats will hold a 43-22 majority in the House and a 23-12 majority in the Senate.

Colorado Newsline is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Colorado Newsline maintains editorial independence. Contact Editor Quentin Young for questions: info@coloradonewsline.com.