Colorado budget boosts education and public safety

DENVER — Colorado’s proposed $50.7 billion budget for fiscal year 2026-27 maintains a balanced financial plan while protecting investments in education, public safety and health care, state officials said Friday.

Delivered three days ahead of schedule, the budget outlines strategies to navigate federal fiscal challenges while sustaining funding for core priorities. Total expenditures include $18.6 billion from the General Fund and a 13% reserve.

Education Investments

The proposal allocates $167 million in state funding for K-12 education and increases per-pupil funding by $413, bringing the total to $12,272. It also implements 30% of the new school finance formula under H.B. 25-1320 and shifts to a three-year average enrollment model.

Universal Preschool funding would rise by $14.3 million, with additional support from Proposition EE and the General Fund. The budget also includes $2 million to improve math outcomes, $1.1 million for open educational resources, and $4.2 million in one-time grants for Coloradans with disabilities. In-state tuition for higher education would remain below the inflation rate.

Public Safety Funding

To bolster emergency preparedness, $7.1 million would be directed to state response and recovery programs amid uncertainty over withheld federal funds. The budget also includes $400,000 to expand efforts against domestic extremism and terrorism, funding for Proposition 130 law enforcement transfers and continued support for school security and criminal justice policy research.

Fiscal Responsibility and Medicaid Reform

The plan limits Medicaid growth to 5.6% in FY 2026-27, significantly below recent double-digit increases, resulting in a $297.7 million increase in General Fund spending. The state will maintain a 13% budget reserve and pursue a conversion of Pinnacol Assurance, which could generate $400 million in proceeds. Those funds would provide $193 million in senior property tax relief, $109 million for state facility maintenance, and $98 million to balance the budget.

Colorado has safeguarded $447 million from federal cuts, though $23 million remains at risk. The passage of H.R. 1 created a $1.2 billion shortfall, requiring adjustments to balance the current fiscal year.

Officials said the budget reflects Colorado’s commitment to fiscal discipline while supporting students, communities, and essential services.