Joint Budget Committee outlines 2025 "long bill" framework, warns of structural deficit and one-time fixes

The Joint Budget Committee on Wednesday reviewed the draft 2025 long bill and said the package preserves K‑12 education, Medicaid and higher education for the coming fiscal year while relying heavily on one‑time transfers and program reductions to close a large budget gap.

Senator Bridges, a Joint Budget Committee member, said the committee began the session with a $2,000,000,000 starting figure and delivered a package that “maintains our commitment to K‑12, maintains our commitment to Medicaid, and maintains our commitment to higher ed.” He added, “we are in a structural deficit” and warned that future years will require deeper cuts.

Why it matters: lawmakers said Medicaid now consumes roughly one‑third of the state’s budget, a share larger than K‑12 for the first time in Colorado’s history, and that health‑care and wage growth outpace the TABOR‑limited revenue growth that constrains state spending. Committee members framed this as the primary driver forcing one‑time transfers and department reductions in the long bill.

Major budget choices and context - Structural picture: The JBC reported the overall budget grew about 3.6% year over year but said the state faces a structural deficit because revenue is constrained by TABOR (the Taxpayer’s Bill of Rights) while health care, salaries and construction costs rise faster than allowed growth.

- One‑time moves vs ongoing change: Committee members emphasized that several decisions in the draft are one‑time transfers or technical changes intended to balance the 2024‑25 budget year and are not sustainable long term.

- TABOR cap changes: The narrative notes changes reflected on the long…