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State staff tell legislature HR 1 will create roughly $1.2 billion shortfall this year and deplete reserves unless action taken
Summary
Office of State Planning and Budgeting told the Executive Committee that HR 1'federal tax changes'are projected to reduce Colorado's revenue by about $1.2 billion in the current fiscal year, creating a projected cash shortfall near $955 million against enacted obligations and substantial downward pressure on the general‑fund reserve.
The Executive Committee of the Legislative Council was told that passage of federal reconciliation bill HR 1 will deliver an immediate, material shock to Colorado's finances. Mark Ferrendino, director of the Office of State Planning and Budgeting, told the committee the office's preliminary estimate is a roughly $1.2 billion revenue loss in the current fiscal year, producing a cash shortfall in the neighborhood of $955 million against obligations already approved in the long bill.
"We are going to lose, we expect $1,200,000,000 in the first year," Ferrendino said, explaining that the state is being hit by roughly 18 months of federal tax changes consolidated into the current fiscal year. He added the administration projects multi‑year costs and cited possible lost federal Medicaid matching funds in…
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