Source: Axios

November 19, 2025

Colorado lawmakers are casting a skeptical eye on Gov. Jared Polis’ $48 billion budget proposal, which would cut health care funding for some of the state’s most vulnerable residents.

Why it matters: The Medicaid cuts are emerging as a flash point in the annual state budget draft, raising the specter of tense negotiations in the months to come.

Driving the news: The majority of the Democratic-led legislative Joint Budget Committee questioned why the governor is underfunding Medicaid — which provides health care to 1.2 million residents — by $333 million in the forthcoming 2026-27 fiscal year.

What they’re saying: State Sen. Jeff Bridges (D-Greenwood Village) expressed concern that the cuts will impact program accessibility.

State Sen. Judy Amabile (D-Boulder) said the cuts would hit populations that would “literally not be able to survive” without the services.
State Sen. Barbara Kirkmeyer (R-Greeley) added the reduced spending would hurt children with autism, dental care, maternal health and mental health therapy. “I just think this is appalling,” she told the governor.

The intrigue: State Rep. Emily Sirota, a Denver Democrat and the committee’s chairperson, took issue with the governor’s plan to sell Pinnacol, the state’s insurer of last resort — a proposal state lawmakers rejected earlier this year.

Without a Pinnacol sale, the state budget has a $400 million hole, Sirota contended. “I take a lot of issue with balancing our budget [on] a thing that …the legislature is not even sure it would do,” she added.

Between the lines: The governor’s budget is a placeholder for lawmakers who write the annual spending plan.

The other side: Polis defended his plan, saying the out-of-control increases in Medicaid spending could limit funding for roads, public safety and education.

The Pinnacol sale would allow the state to boost its reserve fund and provide property tax exemptions to senior residents.

What he’s saying: “We want to look at [Medicaid] with a magnifying glass, make sure every dollar is directed to the best possible patient outcomes,” he told lawmakers Wednesday.