Gov. Jared Polis used his final State of the State address on Thursday to fire a warning shot over Colorado’s checkbook, telling lawmakers at the State Capitol in Denver that affordability will define his last year in office and that a looming budget gap will force some painful decisions.
Polis Puts Affordability First, Vows to Protect K-12
Polis stressed that his top priority for 2026 is making life more affordable, and he drew a clear line around public schools, saying he will oppose any cuts to K-12 education even as he hunts for savings elsewhere. As reported by CBS News, Polis told reporter Shaun Boyd that his final year in office will center on the state budget, affordable housing, and education.
Budget Gap Forces Tough Choices at the Capitol
Lawmakers opened the 2026 legislative session staring at an estimated 850 million dollar shortfall, a structural hole driven largely by years of Medicaid spending that has grown faster than what Colorado’s TABOR spending cap allows. That mismatch leaves little room for new programs and puts Medicaid squarely in the crosshairs of the budget debate, according to The Colorado Sun.
Medicaid Cuts on the Table and a Controversial Pinnacol Pitch
To soften the blow of the gap, Polis has proposed steps to slow the growth of Medicaid, including limits on some reimbursement increases and trimming certain benefits, moves that have already drawn fire from advocates and some legislators. He has also suggested privatizing Pinnacol Assurance to generate one-time revenue, a plan that Colorado Politics reports is drawing skepticism under the gold dome.
High-Stakes Budget Brawl Ahead
The address, which was streamed live, kicks off months of budget wrangling in a year when Polis is term-limited and heading for the exit, making this his final State of the State, as Colorado Public Radio notes. The Joint Budget Committee and lawmakers from both parties are expected to pick apart any Medicaid changes and debate whether one-time moves such as a Pinnacol sale or dipping into reserves are wise or just papering over deeper problems.
Polis wrapped up by calling for bipartisanship and returning again and again to affordability as his yardstick for success. With a November 2026 governor’s race coming into view, the budget fight he framed on Thursday is poised to dominate Colorado politics through the spring and summer.
