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Polis Delivers Final State of the State as Colorado Confronts Deficit, Federal Funding Risks and TABOR Fight

The term-limited governor used the address to prioritize affordability during a year of budget strain.

Overview

  • Colorado enters the 2026 session with an approximately $850 million general‑fund gap as leaders weigh cuts and protections for K‑12 funding.
  • Polis highlighted affordability as his top priority and cited ongoing legal efforts to safeguard federal dollars after threats and withholdings reported at roughly $1 billion.
  • Democratic leaders are preparing a ballot referral to raise the TABOR revenue cap by about $4.5 billion annually and require 2% yearly K‑12 increases, a move that would need a legislative supermajority.
  • Lawmakers opened with a slate of consumer and cost‑of‑living bills, including measures on price gouging, online ‘surveillance pricing,’ teacher housing, utility protections and targeted tax relief proposals.
  • Opening‑day actions included a House vote to replace the governor’s formal title from “His Excellency” to “the Honorable,” and legislators signaled work on competency‑law fixes after a 2024 case dismissal.