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Aurora staff flags state budget uncertainty, TABOR debate as interim committees begin
Summary
City staff reported a mixed state economic forecast, possible budget shortfalls for FY2025-26 and FY2026-27 and the likelihood that TABOR reform debate will continue, and urged monitoring of interim committees, particularly transportation.
Peggy, a state legislative staffer, briefed Aurora’s committee on the legislature’s interim schedule and a cautious mid-year budget outlook that could prompt a special session.
She said the legislature cut eight interim committees this year but still will operate 16 committees over the summer, beginning with the joint technology committee. “They start Monday with the joint technology committee,” she said, and staff will work with city staff to track those meetings.
On the budget, Peggy summarized the June quarterly economic forecast reported to the Joint Budget Committee. “They think there's a reduction of $177,000,000 for fiscal year 25-26 and $500,000,000 for 26-27,” she said, and added that state economists raised the chance of a recession from 40% to 50% in recent months. She told the committee those federal budget actions — including potential Medicaid cuts under the reconciliation discussion — could affect state revenue and may prompt a special session in the fall if the federal picture changes.
Committee members asked for closer tracking of transportation-related interim committee activity because Council Member Hancock chairs the local transportation committee and wants to participate in hearings affecting Aurora projects.
Peggy said bill titles from interim committees are likely to appear in September, with draft bills and committee proposals emerging in October; she advised the committee to expect a slower bill production cycle until fall. Committee members asked staff to provide direct notices when transportation interim meetings are scheduled, and staff agreed to do so.
Discussion also touched on the political difficulty of TABOR reform. Peggy said changes to TABOR would be complicated to explain to voters and difficult to enact, though the debate will continue. One council member voiced strong opposition to undermining taxpayer protections in TABOR and to broad tax increases without clear voter approval.
The committee asked staff to keep Aurora updates frequent as interim work unfolds and to identify opportunities to weigh in on transportation and budget committee proposals.
