Colorado Gov. Polis announces special session, state hiring freeze to address $1.2B loss of revenue

DENVER — Colorado Gov. Jared Polis called for a special session of the state legislature and announced a statewide hiring freeze Wednesday to address a $1.2 billion loss of revenue.

Politics

Colorado faces new $1.2 billion budget shortfall: 'No money to pay our bills'

Brandon Richard

The special session of the Colorado General Assembly will begin at 10 a.m. on August 21, Polis declared in a news conference Wednesday.

In the special session, the governor is asking the state legislature to address the revenue shortfall created by H.R. 1, the "One Big Beautiful Bill Act", passed by the U.S. House of Representatives and Senate, and signed into law by President Donald Trump on July 4, 2025. Because of the tax changes made in the bill, the state is collecting less revenue than lawmakers expected when they approved the budget in May, according to Colorado Democrats.

• Below is the state's estimated revenue impact, released last week:

H.R. 1 reduces state revenue by more than $1.2 billion budget shortfall in the current fiscal year, the governor's office said. It's then anticipated to reduce state revenue by $700 million in fiscal year 2027 and fiscal year 2028.

Polis projects the statewide hiring freeze announced Wednesday would save $3-7 million. It will start August 27 and run through the end of the year.

"That will affect state positions, except for necessary health and safety positions. We're not freezing firefighters, prison guards, 24/7 facilities, but the vast bulk of state positions will be frozen until next calendar year, when hiring will resume,” Polis said.

The governor said he chose to call a special session in August because it would give the state 11 months in the remaining budget year to spread out cuts over a longer period of time than if state lawmakers waited for general session in January.

Colorado House Republicans called the governor's special session "political theater." In a statement, party leadership said it's an "unnecessary and expensive political stunt."

“Instead of working with us to rein in waste and protect the most vulnerable, the Governor is using this special session to defend a broken system," House Caucus Chair Anthony Harstook said in the GOP statement.

Colorado House Speaker Julie McCluskie pushed back on Republicans' claims.

"I strongly push back on the sentiment that this is political theater or grandstanding," McCluskie said. "I welcome any member of the minority to demonstrate to me that these numbers aren't real. I believe they are."

This is the third year in a row Polis has called a special session, and the fourth time since he took office in 2019.

During the special session, Polis also asked Colorado lawmakers to preserve Medicaid eligibility to Planned Parenthood services, funding the governor said is now banned by H.R. 1. The governor also wants state lawmakers to review a reduction in health insurance premiums to avoid Coloradans losing coverage and raising rates for others.

Colorado Senate President James Coleman and Joint Budget Committee leadership released the following statement in response to that concern:

"Due to H.R. 1 and Congressional Republicans’ refusal to extend enhanced premium tax credits for people who purchase health insurance through the Affordable Care Act marketplace, premiums for private health insurance are forecast to go up an average of 28 percent with parts of Colorado, especially on the Western Slope, seeing premium increases of 38 percent," they said in a statement.

In addition to the budget deficit, Polis is asking lawmakers to tackle other issues, including healthcare costs, food security and the state's artificial intelligence law.

Polis said other issues stemming from the BBB, like Medicaid cuts, would be addressed during future legislative sessions and possibly by future governors.

• Watch the governor's full press conference in the video player below:
  
  Governor calls special session, hiring freeze to address $1.2B budget shortfall