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Legislative Council and OSPB lower near‑term revenue outlook, warn federal reconciliation and tariff risks could widen shortfalls

Joint Budget Committee
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Summary

Legislative Council and the Office of State Planning and Budget revised down economic and revenue forecasts, flagged tax‑credit triggers that may reduce FY‑26 credits, and said federal reconciliation proposals and tariff uncertainty could reduce state revenue by hundreds of millions and strain reserves.

Legislative Council staff and the Office of State Planning and Budget presented updated economic and revenue forecasts that scaled back near‑term growth and highlighted substantial downside risks tied to federal policy.

Elizabeth Ramey of Legislative Council described Colorado’s outlook as a narrowed expansion amid cooling labor markets and heightened uncertainty from federal policy and tariffs. Ramey said technical parole returns and other state‑level dynamics are influencing corrections costs, and cautioned that some sector indicators — manufacturing, retail, leisure and hospitality,…

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