There Will Be Blood

First day of Legistlative Session 2023 | Photo: Hugh Carey, The Colorado Sun

The headlines tell the story, “There Will Be Blood,” Senator Jeff Bridges, chair of the JBC is quoted in Denver Axios in a report of the state budget with a $1 billion gap and draconian cuts expected. Denver just passed a restrained budget without their usual amendments for add-ons from City Council.

• State and local governments cut 2025 budgets. Colorado budget writers warn “There will be blood”. (Axios 12-2-24) “Denver Mayor Johnston unveils slim spending plan for city”. (Axios 9-12-24)

This restraint is not a surprise. Recent reports highlight factors contributing to Colorado’s and the Denver metro area’s new fiscal reality:

• Population growth slowed dramatically since 2020. “Coloradans are making fewer babies and migration can’t be counted on to fill the gap”. (Denver Post 11-18-24)
• Metro area and state sales tax revenue stopped growing in 2023 and is now below last year - “Sales tax recession”. (Ciruli Buzz 11-14-24) This is within the context of a myriad of recent local government tax and wage rate increases. ”Is Johnston’s tax in trouble?” (Ciruli Buzz 9-12-24)
• Jobs growth in Colorado slowed in 2024. “Colorado’s job picture weaker than previously known.” (Axios 8-22-24)
• Federal dollars from COVID relief have ended and the Trump administration promises a new austerity and even cuts. End of federal COVID money means shortfalls for states and schools. (Governing 2-2-24)

Persons and groups planning new taxes and expenditures in 2025 will have a difficult environment.