Axios Denver reports that Democratic leaders at the Capitol previewed a special‑session plan to plug a roughly one billion dollar budget hole by raising taxes, trimming some services, and dipping into the state’s rainy‑day reserve. The hole, they argue, widened after H.R. 1 cut state income taxes, and the fight now shifts to the special session set for Thursday.
The package mixes new revenue, reserve withdrawals, and executive‑branch belt‑tightening. Republicans call for spending cuts instead of revenue boosts, and one GOP senator is teeing up a voter‑approval backstop on future state tax changes tied to federal law. Translation for civilians: bring snacks, the partisan fireworks are pre‑lit.
The Bullet Point Brief
- Democrats would yank corporate tax perks worth about 300 to 400 million dollars, limit the business tax deduction, end breaks on foreign‑sold goods, and crack down on profit shifting.
- The state reserve would drop from 15 percent to about 13 percent, a two to three hundred million dollar tap while analysts whisper about recession risks.
- Even with all that, there is still a 750 million dollar gap, so 300 million dollars in cuts get punted to the governor and the Joint Budget Committee, with actions expected by Sept. 1.
- Colorado is extra sensitive to federal tax changes; H.R. 1 lowered state individual and corporate income taxes by an estimated 1.2 billion dollars.
- Republicans tout the federal cuts and resist new state revenue. Sen. Byron Pelton plans a bill to require voters to sign off on any state tax change caused by federal law.
My Bottom Line
The special session looms. The Republicans want to cut, the Democrats want to keep, and taxpayers are the piñata. Team Blue is raiding reserves, revoking corporate perks, and promising stewardship. Team Red is sharpening the scissors and telling the majority to live within its means. Need I say more. In a town where “temporary” fixes become permanent habits, this looks like a choose‑your‑own‑austerity adventure: cut now, or cut later with interest. Either way, the bill comes due, and the political virtue signaling will not make the ledger add up.
