Gov. Polis Presents Colorado Budget Proposal With High Reserves In Case Of Economic Downturn

By Sara Wilson, Colorado Newsline

November 1, 2022

Colorado Gov. Jared Polis released his budget proposal for the 2023-2024 fiscal year Tuesday, aiming to provide investments for things like public education, wildfire mitigation and public safety while considering a potential near-future economic downturn.

In light of that uncertainty, the budget proposal protects 15% reserves and restrains operating growth to 7%. The total request is for $16.7 billion, down 5.9% from the previous fiscal year, which starts every July 1.

“The global economic uncertainty is a risk factor. We don’t recommend record reserves for fun,” he said during a Tuesday briefing at the Governor’s Residence at Boettcher Mansion in Denver.

Despite the threat of a recession, the budget request increases funding levels in multiple areas, including public K-12 education. It asks for an increase of $704 million to the entire system, which would allow for a per-pupil funding increase of $861.

“That is really important in reducing class sizes, compensating for learning loss, better compensation for teachers, better funding for enrichment and academic programs with proven results. I look forward to working with our districts to align investments for better outcomes for our youth,” he said.

It also includes a $6 million ask to continue the pandemic-response I Matter program that provides free mental health counseling for children.

"For years in the past, Colorado has relied on an interstate pool of aerial assets. But what do you do when there’s fires in New Mexico, California and Colorado?"

– Gov. Jared Polis

As for public safety, the budget request includes $42.1 million to try and reduce crime, support officer retention and increase crime prevention strategies. That includes $12.6 million over two years to prevent and prosecute auto theft, which has rapidly increased in recent years. A budget line of $5.4 million would be used to expand the state’s toxicology lab and create two new Special Investigations Units within the Colorado Bureau of Investigations with the power to help jurisdictions in their fight against the rise of fentanyl.

The budget proposes a $38.3 million package for wildfire mitigation that includes $13.8 million for aerial resources, $7.2 million for local firefighters and $3.2 million to create a statewide fire data system.

“For years in the past, Colorado has relied on an interstate pool of aerial assets. But what do you do when there’s fires in New Mexico, California and Colorado? We need to have those resources in place to go after small fires before they become large,” he said.

Polis proposed an additional $91 million in matching funds to draw federal funding from the Infrastructure and Investment Jobs Act, which he said could help the state compete for $7 billion in funding over the next decade.

The budget proposal does not have much wiggle room for new spending, which was expected after the latest economic forecast. That means state lawmakers will have to be judicious and creative when it comes to funding for any new programs.

“We’re happy to work with Republicans and Democrats on finding additional savings. I would really recommend that if legislators have ideas for new programs, they offset them by eliminating or reducing other programs. We need to maintain strong reserves more than ever before in the face of global economic uncertainty,” he said.

The governor — whether that be Polis or his Republican challenger, Heidi Ganahl, in next week’s election — can submit a supplemental budget amendment package on Jan. 2.

The state budget is ultimately set by the Legislature and compiled by the Joint Budget Committee.

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