Balancing Colorado’s Budget
What’s the problem?
Colorado is not generating enough revenue to cover public services.
In 2025, there was a $1.2 billion shortfall in the budget.
Major projects such as housing development, highway expansion, infrastructure development, and rural development have been delayed or scrapped due to budget shortfalls.
Colorado has low tax rates with the lowest state sales tax rate in the country and ranks 21st in state income tax rate at 4.4%.
39% of the state budget is mandated spending that goes to Medicaid.
How can we fix it?
Introduce a vote to establish a tax of 0.75% on profits exceeding $400,000 from LLC’s, sole proprietorships, and non-corporate businesses which could raise over $105 million.
Introduce a vote to increase corporate profits tax in Colorado from 4.4% to 4.85% which would raise $183 million.
Expanding Colorado’s Community First Choice with Medicaid by adding 6 percentage points to federal funding which would save $40 million.
Recover improper Medicaid payments and increase measures to prevent fraud payments which could save $55 million.
Establish a standardized billing system to handle all invoices from medical institutions receiving CHP, Medicaid, and other state healthcare grants which would lower administrative costs and require that institutions pass administrative savings onto Medicaid patients/providing positions to laid off administrative employees to help lower state healthcare costs and save $90 million.