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Colorado Faces $850 Million Deficit Amid Economic Woes

9/23/2025

49 9 Full Breakdown

Summary

Story summary

Colorado projects an $850 million deficit for 2026-27, driven by Medicaid costs.
Economists warn of a possible 2026 recession, citing tariffs and a weak labor market.
Medicaid spending grows 9% annually, outpacing the Taxpayer Bill of Rights (TABOR) cap.
Tariffs could cost Colorado businesses about $250 billion annually; 2026 refunds for low-income residents will be minimal.

History

Historical Context

Since Colorado's Taxpayer Bill of Rights (TABOR) was enacted in 1992, limiting state revenue growth, Medicaid spending has surged, averaging a 9% annual increase. By 2026-27, the state faces an $850 million deficit, highlighting the conflict between rising healthcare costs and fiscal constraints. This ongoing struggle reflects broader tensions between economic policy and social welfare in the U.S.

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Story summary

Colorado projects an $850 million deficit for 2026-27, driven by Medicaid costs.
Economists warn of a possible 2026 recession, citing tariffs and a weak labor market.
Medicaid spending grows 9% annually, outpacing the Taxpayer Bill of Rights (TABOR) cap.
Tariffs could cost Colorado businesses about $250 billion annually; 2026 refunds for low-income residents will be minimal.

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