Amidst the looming threat of a federal shutdown, Governor Jared Polis has spoken out, urging lawmakers on Capitol Hill to pass a balanced budget and shield the American public from the economic repercussions that might follow. Drawing attention to the impact on his constituents, Polis highlighted the potential fallout, including increases in health insurance premiums and loss of coverage for many Coloradans. "We saw during the last federal shutdown how billions of dollars in economic activity were lost, workers went without paychecks, and businesses never fully recovered their potential income," Polis said, according to the Colorado Governor's Office.
Colorado's governor has been proactive since June, advocating for Congressional action to extend the Enhanced Premium Tax Credits (EPTCs), which are crucial for more than 24 million Americans, including nearly a quarter-million Coloradans. Without these tax credits, individuals could see their premiums skyrocket by up to 300 percent. Despite these efforts and having worked with the legislature to fortify Colorado’s reinsurance program as a bulwark against these increases, the deadline for insurers to set their rates looms large.
A federal shutdown doesn't just affect the healthcare sector but extends its tentacles into the very heart of Colorado's economy, its rural tourism. The closure of National Parks, such as Rocky Mountain National Park, which garnered 75% of October's visitors alone, would be a severe blow to local communities reliant on the tourism industry. Last year, around 1.66 million visitor days were logged in September and October, showcasing the potential scale of economic disruption. The state has developed contingency plans to keep these attractions operational in the interim, but, as Polis stressed, these are not a sustainable solution.
On the state level, Polis has taken steps to mitigate the damage, providing emergency funding to ensure that programs like WIC continue without federal assistance. Referring to the last government shutdown, it is estimated by the Congressional Budget Office that $18 billion in federal spending was delayed, which saw a fall in GDP by $8 billion in one quarter alone and $3 billion in activity that was permanently lost. "It limits our ability to maintain the parks operations and will close them off for everyone to enjoy, ultimately hurting our economy, and visitors," Polis stated, as per the Colorado Governor's Office, underscoring the urgency of preventing a similar fate this time around.
