Legislative Report: Governor Polis’ Spending Reduction Measures | 8-28-2025
Please click here to read CCI’s final legislative report of the special session of the Colorado state legislature. It provides a helpful overview of all actions taken and provides some context to the materials available below.
Downloadable Resources
- Wednesday, September 10 Meeting Recording between CCI, OSPB, CALPHO, and other partners on budget cuts.
- Video Passcode: R.=Q9*3h
- Slide deck by OSPB from said meeting on the Governor’s Revenue Reduction Plan.
- Two-Pager from CALPHO outlining the recent funding cuts and their local impacts.
Governor’s Office/OEDIT Prop 123 Statement
A challenging budget environment created by the federal H.R.1 has required the Colorado State Legislature and the Governor to make tough decisions about program funding, including activating the voter-approved Proposition 123’s budget balancing mechanism that allows the state to reallocate dollars to the General Fund when state revenue is below the TABOR cap. The Office of Economic Development & International Trade (OEDIT) is working closely with the Governor’s Office and our partners at Colorado Housing and Finance Authority (CHFA) to ensure that the Affordable Housing Financing Fund continues to support housing Coloradans can afford across the state. A few clarifications regarding these developments:
- Last week, the Polis Administration submitted a budget balancing plan, pursuant to legislation passed in the recent special legislative session to the Joint Budget Committee that activates Proposition 123’s budget balancing mechanism and includes a proposed one-time future reduction of $105 million in OEDIT’s Proposition 123 funds (the Affordable Housing Financing Fund) available for award during fiscal year 2026-2027 (July 1, 2026 through June 30, 2027)
- The Proposition 123 statutory ballot language included in the original voter-approved ballot initiative allows the General Assembly to reduce the transfer to the Prop 123 AHFF (OEDIT/CHFA managed programs) in years when state revenues are below the TABOR cap. This critical language helps to ensure the state does not need to cut other key priorities like education during times in which the state is under the TABOR cap.
- It is important to note that the budget request does not affect the $190,197,000 in funding that is currently available for awards now through June 2026. Additionally, it will not impact projects that have previously been awarded funds.
- The Governor has indicated that remaining FY 26-27 funds would be used to maximize Colorado’s ability to leverage federal dollars to create housing in the state, among other priorities. One area of anticipated focus is gap financing for projects that have already received federal low income housing tax credits (LIHTC).
- Ultimately, this proposal will be submitted to the General Assembly for review as part of the Governor’s supplemental budget requests, along with the other proposed cuts due to H.R.1.