Policy Pulse headline with Matt VanAukens photo and his title

Policy Pulse: Inside Colorado’s Budget Process for 2026

By Matt VanAuken, DP Chief Executive Officer & Executive Director

 

Each year, Colorado’s state budget shapes the essential services and supports that thousands of people rely on, from education and transportation to programs that support individuals with disabilities.

On October 31, 2025, Governor Polis released his proposed budget for the 2026-2027 fiscal year. This proposal is the first step in a months-long process that determines how Colorado allocates its resources.

Why This Matters

Developmental Pathways works closely with the Department of Health Care Policy and Financing (HCPF) and the Department of Early Childhood (CDEC) as we contract with these agencies as a Case Management Agency (CMA) and Early Intervention Broker (EIB). Changes in these departments’ funding directly affect the people we support.

This year, Colorado is facing a challenging budget environment. HCPF represents about one-third of the state’s overall spending. While individuals receiving Long Term Services and Supports (LTSS) make up just about 5% of all Medicaid members, they account for about 42% of total spending because these services are intensive, individualized, and vital.

Our priorities this budget season are to:

  • Protect system stability
  • Ensure access to critical services and supports
  • Keep individuals and families at the center of every discussion

We’re closely monitoring several HCPF budget requests that could impact individuals and families, while the department actively works to minimize cuts and control spending.

For the most current updates on LTSS-related budget requests, visit HCPF’s Medicaid Sustainability and LTSS page.

How Colorado’s Budget Process Works

Colorado must pass and maintain a balanced budget, meaning the state cannot spend more than it collects in revenue (unlike the Federal government).

Here’s what happens next:

  • Over the next few months, the Joint Budget Committee (JBC) will hold briefings with staff analysts and state agencies about their funding requests. These briefings and subsequent agency hearings are public and recorded. During hearings, JBC members can question the agency about their spending priorities and requests.
  • With input from analysts and staff, the JBC drafts the “Long Bill,” also known as the budget bill.
  • The Long Bill is debated and amended in both the House and Senate before it goes to the Governor for approval. The Governor can sign it into law, veto it entirely, or issue line-item vetoes to reject specific parts.

This proposal is only the beginning. Significant changes can (and often do) occur before the Legislature passes the final version, typically in May.

For a deeper dive into how the state budget comes together, here are some helpful resources:

Advocacy Resources

Understanding the process is the first step. Colorado has many great advocacy organizations – some focus on disability rights and others on broader budget and policy issues. We’ve included a range of organizations to explore and/or connect with (note, this is not an exhaustive list):

Looking Ahead

DP will continue to track the budget process closely and share updates on how these decisions affect the individuals and families we support. We believe that informed communities are empowered communities, and understanding the budget is one way to ensure the system remains strong, sustainable, and centered on people.