Colorado’s $34 billion budget for the fiscal year beginning July 1 restores most spending cuts imposed during the pandemic that began a year ago.
The so-called “Long Bill,” SB21-205, won final passage in the General Assembly last week and awaits Gov. Jared Polis’ signature.
“This budget not only restores the cuts that we were forced to make last year, but it invests in Colorado’s future and helps facilitate an equitable economic recovery — making our state stronger and more resilient for years to come,” the Joint Budget Committee chair, Sen. Dominick Moreno, D-Commerce City, said in a prepared statement after passage Friday.
State spending increases by about $4 billion over the current budget that ends June 30. Federal relief funding played a large part in allowing the budget to grow, according to rating agencies.
“In fiscal 2022, we expect states with strong economic growth projections will face fewer budgetary hurdles compared with pre-pandemic budget patterns, while states that expect recovery over a longer-than-average time horizon will rely more heavily on federal funding, putting them at greater risk for structural deficits,” S&P Global Ratings noted in an April 29 report.
The budget includes funding for day-to-day operations of state government, the majority of which is allocated to six departments, dubbed the “Big Six.” Those are the departments of Health Care Policy and Financing, Education, Higher Education, Human Services, Corrections, and the Judicial Branch. Together, they account for about 80% of total state funding.
The Colorado Department of Education receives the most discretionary spending with $480 million from the legislature and more than $1 billion from the Biden administration. The additional funds provide the most per-pupil spending in the last 10 years.
State-run colleges and universities suffered a 58% cut last year, with federal pandemic funds providing a cushion. The new budget restores last year’s cuts and adds another $100 million for first-generation students and those from underrepresented backgrounds.
Despite the trend of restoring funding, the Department of Transportation’s budget will fall next year by about 4% or $86 million. A decline in revenue from reduced driving in 2020 is one factor.
The budget provides $800 million for the legislative stimulus package, which includes appropriations to support agricultural communities, infrastructure, rural economic development, school investment, and job creation.
“This budget is a moral document that seeks to rebuild community pillars and set the tone for reimagining an economic future that truly works for everyone,” said Joint Budget Committee Member, Senator Chris Hansen, D-Denver. “As budget writers, we have to balance adequately funding existing programs, while also making calculated investments that benefit as many Coloradans as possible.”