City—s lobbyist warns of state budget shortfalls, outlines housing, data‑center and municipal court issues

Pueblo City Council received a legislative and budget update Nov. 10 from Gil Romero of Capital Success Group, who warned of continued state fiscal pressure and identified several issues the city should monitor as the 2026 legislative session approaches.

Romero told council the state faces recurring deficits: roughly $1.2 billion last year, another $800 million addressed in a special session this summer, and an expected shortfall of about $1 billion next year. He described the total state budget as about $50.6 billion and noted roughly 30% of those funds come from federal sources, which makes federal policy a central factor in Colorado—s fiscal outlook.

Romero highlighted three priorities he recommended the city track closely: economic development, public safety and health care. He singled out two items with potential local impact: a governor recommendation to reduce business personal property tax backfill for local governments and possible Medicaid reductions that could affect Pueblo hospitals and push primary‑care needs into emergency rooms.

On housing, Romero said his firm is working with local stakeholders (including Melissa Cook and Zach from Gary Ventures) to seek fixes tied to ballot‑related provisions (referred to in the briefing as Propositions 1, 2 and 3) and said Representative Basenecker is the bill sponsor they—re working with. ‘‘We—re continuing to work with the sponsor,’' Romero said, adding that stakeholder meetings will inform any amendments.

Romero also reported progress on environmental and code issues tied to abandoned or burned structures. He said the city met with the Colorado Department of Public Health & Environment (CDPHE) and that CDPHE may allow the city to submit multiple structures together for asbestos and lead abatement approvals rather than one property at a time.

On data centers and AI-related bills, Romero said there are multiple sponsors and three drafts he expects the council to review; he cautioned large hyperscale data centers may be a poor fit for Pueblo but said smaller projects or carve‑outs could create economic opportunities. Council members raised questions about energy rates, community choice energy, and whether proposed legislation would allow data centers to generate their own power; Romero said he will share drafts and follow up with legislative contacts.

Romero also addressed last year—s municipal court legislation and acknowledged a conflict question raised previously: his firm represented the city on the municipal court bills while also representing two clients in the education and corrections space, which he said had approved waivers so the firm could proceed. He said the vetoed bill will not return in the same form but that a transparency‑focused bill is expected next session.

Councilors asked about stakeholder participation, energy and PUC (Public Utilities Commission) issues; Romero said he and his team would provide additional materials and stay engaged as bills are drafted.