DENVER — In nearly 12 hours, state lawmakers will convene at the Colorado Capitol for a special legislative session.
Governor Jared Polis called the session in order to address the state's $1.2 billion budget hole.
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Polis blames the budget deficit on the tax changes made in President Donald Trump's One Big Beautiful Act (H.R.1). According to the governor and fellow Colorado Democrats, Colorado is set to collect less revenue than expected when lawmakers approved the state budget in May.
“The whole reason for the special session is the ‘big, beautiful bill,’” said State Senator Judy Amabile, a Democrat representing District 18.
Across the aisle, Colorado Republicans say the federal government’s spending bill isn’t to blame.
“I think this is a very complicated issue," said House Minority Leader Rose Pugliese, who represents District 14. "It was not caused by H.R. 1."
Pugliese said the state was already dealing with a budget shortfall before H.R. 1 was signed into law, and some changes outlined in the legislation won't take effect for another year.
- Below is the state's estimated revenue impact
Members of the Scripps News Group sat down with both parties ahead of the special session to listen to their proposed solutions for the shortfall.
Amabile said her party will focus on drawing down the state’s budget reserve and raising revenues. To do that, Colorado Democrats will push to close corporate tax loopholes.
The party has introduced a handful of bills aimed at closing such loopholes, like 25B-008, which would crack down on companies that may be hiding their income taxes in other countries.
In addition, Amabile said Democrats will attempt to amend the language on upcoming ballot questions involving the Healthy School Meals For All program.
Colorado voters approved the Healthy School Meals For All program in 2022, which offers every student, regardless of their family’s income, free breakfast and lunch. The program is funded by capped charitable tax deductions for those making $300,000 or more.
During this year's legislative session, Colorado lawmakers passed a bill that added two ballot measures to the November ballot. One will ask voters for permission to keep the excess revenue the state collected during the program's first year. The other will ask voters to raise taxes for wealthier Coloradans to pay for the program.
The hope, according to Amabile, is to amend the ballot language so that increased tax revenue will be directed to the Supplemental Nutrition Assistance Program (SNAP).
- Read our previous coverage about the ballot questions in the story below
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During our interview on Wednesday, Denver7 asked Amabile if Coloradans can expect any cuts to services in order to fix the budget gap.
"No. We're not going to see that in the special session, but we do expect that the Governor will make some spending cuts," she said.
Across party lines, Pugliese said Colorado Republicans are focused on reigning in waste.
One example she gave would be redirecting funds from reproductive and immigrant health benefits to rural health providers. That alone would save more than $34 million, according to the GOP.
"We are going to be bringing forward solutions that help protect the voices of the people, especially against tax increases," Pugliese said.
She said her party will also zero in on finding out what federal COVID-funded programs can be cut.
"Is there an opportunity to maybe eliminate some of these new offices that were created?" Pugliese said.
State lawmakers will be working to find solutions and reach a compromise as quickly as possible. The longer the special legislative session lasts, the more it will cost taxpayers.
"Yes, the session does cost money, but that amount pales in comparison to the thing that we're trying to fix," Amabile said when asked about the cost.
Both parties told Denver7 they're hopeful to find bipartisan solutions.
"My message to the taxpayers is that we're going to continue to fight to make sure that we cut back on regulations and taxes and fees and do not put that on the burden on the backs of hardworking Coloradans," Pugliese said.
