DENVER ~ Denver, CO - Governor Jared Polis has signed a balanced state budget for the 2026-2027 Fiscal Year, ensuring financial stability and protecting important investments in education and public safety. The budget also addresses the negative impacts of President Trump's H.R. 1.

In his eighth balanced budget, Governor Polis expressed pride in the difficult decisions, thoughtful discussions, and commitment to Colorado's future that went into its creation. "This balanced budget protects our historic education investments, fully funds our schools, makes our communities safer, and sets Medicaid on a sustainable path ensuring the care Coloradans need is available long-term," said Governor Polis.

The $1.2 billion budget shortfall was a major challenge in creating this balanced budget. However, it successfully protects important services for Coloradans and safeguards investments in education and public safety - issues that are top of mind for many residents.

One of Governor Polis' top priorities is investing in Colorado's children. As of January 15, 2026, the state has invested $174.9 million to provide Universal Preschool to 44,359 four-year-olds and $10.4 million to provide Individualized Education Programs for 4,134 three-year-olds in the 2025-26 school year. This not only supports children's futures but also saves families money.

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Despite the difficult budget environment, this balanced and responsible budget makes significant investments in areas that are important to Coloradans.

One key aspect is making Medicaid sustainable for the future. The budget controls its growth and sets it on a sustainable path while protecting coverage and access to critical services. It also increases Total Funds for Medicaid by more than $2 billion - a more than 7.5% increase in General Funds. Additionally, Denver Health will receive $11.3 million in funding to strengthen the state's largest safety net hospital and ensure care is available for everyone.

Investing in Colorado students is another priority for Governor Polis. The budget increases funding for Universal Preschool by $14 million, strengthening the popular initiative that saves families $6,300 per year. It also invests more than $200 million to implement more of the new school finance formula, increasing funding by $209 per student and putting resources where students are learning. Furthermore, there is an increase of $8.3 million for special education through Categorical program funding. The budget also holds tuition increases at public institutions of higher education below 3.5%, with exceptions for Community Colleges with historically low tuition to increase below 5%.

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The budget also focuses on making Colorado safer. It invests $60 million to safely manage individuals found to be incompetent to go to trial and provide timely competency evaluation and restoration services. Additionally, there is an increase of $4.5 million for the state's emergency management, ensuring the safety of Coloradans in the face of the Trump Administration's failure to help Colorado communities recover. The budget also maintains a healthy 13% reserve, preparing Colorado to weather future economic downturns.

In addition, the budget addresses the Mountain Pine Beetle outbreak by investing $0.3 million to support the Palisade Insectary's efforts to introduce natural and native predators of the pine beetle.

Governor Polis' full transmittal letter can be read for further details on the budget.

Overall, this balanced state budget demonstrates a commitment to Colorado's future and addresses important issues facing its residents. With difficult decisions and thoughtful discussions, Governor Polis and his team have created a responsible budget that sets the state on a path towards financial security while protecting vital investments in education and public safety.

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