Gov. Jared Polis proposed fully funding Colorado’s public education system for the first time in 14 years Wednesday, even as he unveiled a budget plan that he said signaled a return to a normal — and tight — financial state of affairs.
Beyond finally meeting the state’s constitutional education funding responsibility, Polis’ proposal also advocates for more than $136 million for his housing priorities, largely to advance his goal of building more across the state. The plan includes nearly $40 million for public safety; $75 million to address the state’s competency crisis, in which people waiting to be deemed competent to stand trial are backed up in state hospitals; and millions more in environmental, education and health care spending.
It’s the first state budget proposal in several years that isn’t cushioned by significant COVID-19 pandemic aid from the federal government.
Broadly, Polis said his budget prioritizes a handful of issues: housing, public safety, health care, environmental protection and education. Much of the increased revenue expected during the 2024-25 fiscal year would be directed to fund education, he said, meaning he’s proposing fewer new programs than in years past.
“It’s very tight. There’s not a lot of extra money floating around this budget,” Polis said. “We have to prioritize and make the hard choices.”
His $18.4 billion general fund budget proposal would be 6% larger than what Polis proposed last year, while maintaining a 15% reserve safety net.
It’s the opener for state policymakers’ budget debate ahead of the next fiscal year, which begins July 1. Polis will release an updated budget request in early January that takes into account an economic forecast coming next month as well as the impacts of any ballot measures that voters approve in the Nov. 7 election, including Proposition HH, a sizable property tax relief and education funding proposal.
Legislators by the spring will craft and pass a budget bill for Polis’ consideration and signature. At first blush, House Speaker Julie McCluskie and Senate President Steve Fenberg, both fellow Democrats, praised the outlines of Polis’ proposal.
Here is a look at several areas targeted by Polis’ budget proposal:
Education
The governor’s proposal includes a $564.1 million increase in K-12 spending, much of it devoted to finally eliminating the budget stabilization factor — the term for the gulf between what the state is spending on public education and what it’s required to spend under Amendment 23, which voters passed in 2000.
The increase would mean an additional $705 per pupil.
Polis’ proposal does not take into account potential benefits from the state-referred ballot measure Proposition HH, which, if passed, would direct hundreds of millions of dollars to public education annually in coming years by reducing state tax refunds.
Eliminating the budget stabilization factor had been a priority for Polis and legislators for years. Policymakers had pared it down earlier this year but had stopped short of fully wiping it out because they weren’t confident that elimination would be permanent.
Polis told The Denver Post on Wednesday that he was confident the factor could be nixed for good.
“This is the moment that parents, students and teachers have been waiting for,” House Speaker Julie McCluskie said in a statement, “and I’m proud that our responsible budgets and consistent investment in our students have paved the way to make it a reality.”
Polis’ budget proposal also includes money to improve the state’s universal preschool program, which had a bumpy rollout this year, albeit on the edges: His proposal would bolster computer systems and help desk services within the program.
The state’s universities and colleges would receive $33.4 million under the proposal to tamp down tuition increases. Polis said tuition hikes would be capped at 2% for in-state students and 6.5% for out-of-state learners.
Housing and affordability
In pursuit of his supply-side housing goals, Polis’ budget includes nearly $137 million for various incentives and programs. The governor told The Post that the money, if included in the final budget, would work alongside legislation set to be introduced early next year expanding housing development options. Those include accessory-dwelling units, which often are built above garages or in backyards, and development in denser areas near public transit.
His proposals include:
$35 million toward a new incentive fund for transit-oriented development to offset local government costs.
$30 million in affordable housing tax credits for developments near transit lines.
$18 million for fees and costs related to building accessory-dwelling units.
$10 million to incentivize strategic growth.
$16.4 million for workforce housing in Denver and Sterling.
The budget proposal also includes the use of $30 million in funding from Proposition 123, a voter-passed affordable housing program, for rental assistance.
Polis said he wanted to provide an incentive structure for local governments and developers to pursue the policy options that he and legislators are certain to push this session, such as increasing housing development and broad land-use reform. He called his proposals “carrots,” and they would tie in particularly to a slate of land-use reform bills that legislators, after seeing similar legislation defeated last year, are preparing to introduce in coming months.
Public safety
Polis reiterated Wednesday his campaign promise to make Colorado one of the 10 safest states in the country. To that end, his proposal includes:
$14.4 million for auto theft prevention by increasing funding for law enforcement, drawing on novel technologies to “apprehend prolific car thieves” and victim support.
$7.5 million in grant funding for “community-led crime prevention strategies,” available both to law enforcement and community groups.
$1.7 million as a legislative placeholder that would give the Colorado Bureau of Investigation the power to investigate more illegal firearm purchases.
$3.6 million in afterschool programming intended to curb youth violence.
Health care
In his letter to legislators describing his budget priorities, Polis pledged to “double down” on health care spending with $138.3 million in new spending. Those programs include:
$53.8 million for wage increases for home- and community-based services’ direct care workers.
$15 million to prepare for and combat health crises.
$14.3 million for pediatric health care, including $2.8 million to provide autism coverage for kids on the state’s Child Health Plan Plus.
$29.1 million to support children who are most in need of health care.
The proposal also includes more than $75 million to help address the backups that are driving the ongoing competency crisis. Mark Ferrandino, Polis’ state budget director, said that money would be used to improve staffing and capacity at state hospitals to speed up reviews.
The environment
Polis proposed continuing two years of state subsidies for zero-fare transit during summer months for metro Denver’s Regional Transportation District and other transit agencies. He also proposed $2.1 million to replace state-owned gas and diesel gardening equipment and $14 million for programs to improve air quality.
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