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Colorado Gov. Jared Polis on Monday signed the state's $44 billion spending plan for the next fiscal year during a ceremony in which lawmakers cautioned that the state's financial

woes are just starting. Lawmakers faced a $1.2 billion funding shortfall, driven by higher-than-expected Medicaid costs and a structural deficit. To fill that hole, legislators eliminated

certain programs, swept money from elsewhere, and shuffled dollars around to pay for their priorities. They eliminated, for example, the State Employee Reserve Fund, which served as a loan

program for state employees; an incentive program for banks lending to low-income individuals; and the School Mental Health Screening program, which only saw six schools across the state

participating. They preserved certain spending, such as pay raises for state employees and an increase in per diem for lawmakers.   All told, the 2025-26 budget, at $43.9 billion, is more

than $3 billion more than the 2024-25 budget. The largest portion of that increase is in cash funds.  Polis commended the work of the six-member Joint Budget Committee, a panel that includes

four Democrats and two Republicans. The committee drafted the budget and later reconciled differences between the two chambers.  "A lot of hours and time went into writing this

document," he said. "It's a balanced, bipartisan budget, holding strong reserves for an uncertain future to make smart investments to protect what matters most, including

education, public safety, and health care," the governor said.  Polis highlighted several budget items, including reductions in vehicle registration fees by $3.77 for the next two

years. The budget also appropriates an additional $5.3 million to the Ridge View Supportive Residential Community in Watkins, a housing community for homeless people. The budget allocates

$15 million for public safety infrastructure, including $10 million to address juvenile delinquency and $2.4 million for community corrections placement. It funds the Healthy School Meals

for All program throughout the rest of 2025 but relies on voters in November to decide whether to continue paying for breakfast and lunches for all school kids, regardless of income, or

whether to base the program on income level starting in 2026.  The 2025-26 budget caps public college and university tuition increases at 3.5% for both resident and nonresident students.

That comes with an increase in funding of $32.3 million, less than half what was requested by the state institutions of higher education. Meanwhile, funding for K-12, although not contained

in the budget — that's handled through the School Finance Act — will increase by $150 million. In the past, lawmakers put their own salary increases on hold during times of economic

struggle, most recently through a bipartisan bill in 2020. Not this time. Lawmakers are in for an increase in per diem in the 2025-26 budget, the result of a bill passed in 2024. Currently,

lawmakers who reside within 50 miles of Denver can claim $45 per day and are not required to provide receipts for expenses such as meals or transportation. Under House Bill 24-1059, that

increases to $71 per day and applies to 40 House members and 21 senators. That would result in an increase of about $3,120 per person for the 120-day session. For those who live more than 50

miles away, the per diem would increase from $240 per day to $254 per day for the 120-day session, representing a rise of approximately $1,680 per person. During the budget debates,

Republicans pushed for several amendments. Some sought to reduce state spending in a variety of programs, ranging from a low of $38,000 to as much as $36 million. Others maintained funding

in other areas, such as for obstetric services at the Arkansas Valley Regional Medical Center in La Junta.   They targeted some of their priority issues, such as funding tied to immigration,

abortion, unions and firearms. Rep. Carlos Barron, R-Fort Lupton, for example, was among several who offered unsuccessful amendments to reduce the budget by $34.7 million in general funds,

most of it for health care for immigrant children, and divert those dollars to other purposes, such as K-12 education. "This balanced budget makes those tough choices, protects what

matters, makes the strategic investments we need and really makes sure that Colorado is on a very strong path for the future," the governor said. Joint Budget Committee chair Sen. Jeff

Bridges, D-Greenwood Village, said nobody was happy about the cuts. Still, he said, the committee made those reductions in a way that prioritized what lawmakers deemed to be most important

to Coloradans — education, public safety, and health care. "Unlike what you see in Washington, we did it in a way that was thoughtful, strategic, and bipartisan," he said. "I

talk about the budget as a moral document, and I think especially this year, those values are reflected in black and white with dollars and cents attached in a way that I think the people of

Colorado can really be proud of. I'm extremely proud of the work we did on this budget in an extraordinarily tough year." JBC member Sen. Barbara Kirkmeyer, R-Brighton, expressed

a shared worry — while this year's budget situation was difficult, it's likely to be even worse next year. "We've got a lot of work to do next year," she said.

"We had a lot of one-time spending again this year that isn't going to make it next year. We don't have any other cash funds to keep trying to move money around into, and we

don't have a whole lot of interest left." She added: "It still probably looks a little bit daunting for next year, but I have every confidence in the Joint Budget Committee

and our Joint Budget Committee staff that we will get it done next year, as well and meet our constitutional mandate of a balanced budget." Read more about the budget here, and read

Gov. Polis' letter to the General Assembly about the budget here.