FY 2021-22 State Budget PASSES the Senate

The final Long Bill reflects community priorities by massively investing in public schools, health services, and infrastructure projects

DENVER, CO - Today, the Senate passed this year’s ‘Long Bill’ as well as a series of companion bills that comprise the totality of Colorado’s state budget. After a tumultuous economic year, the 2021-2022 state budget reflects Colorado’s continued fiscal improvement as well as the legislature’s commitment to build back stronger.  

“Budgets are more than just line items in a spreadsheet, they are principled documents that reflect what we care about as a community,” said Senate President Garcia, D-Pueblo. “The responsibility of crafting such meaningful legislation is something we do not take lightly. This year’s budget is the result of five months of tireless, bipartisan work to revitalize the state after a devastating pandemic. I am grateful for the way in which we have worked across the aisle to invest critical funds into Colorado’s public school, healthcare services, and state infrastructure – putting our state on track to not only recover but build back stronger.”  

“I am incredibly proud to see this session’s budget pass through with such strong bipartisan collaboration and support," said Chair of the Joint Budget Committee, Senator Dominick Moreno (D-Commerce City). “After an incredibly difficult year, we were able to come together and invest in rebuilding our economy all the while ensuring an equitable recovery. We are not out of the woods yet, and there are many challenges we have still to overcome, but I believe that we are well on our way towards a stronger, more resilient Colorado.” 

Overall, Colorado’s $34.6 billion budget includes funding for day-to-day operations of state government, the majority of which is allocated to six departments, known as the ‘Big Six’ – the Dept. of Health Care Policy & Financing, the Dept. Education, the Dept. of Higher Education, the Dept. of Human Services, the Dept. of Corrections, and the Judicial Dept – which together receive approximately 80% of total state funding.

Last year, as a result of the COVID-19 pandemic and subsequent economic recession, the state budget was forced to absorb a near $4 billion reduction in financial resources. Fortunately, as the state economy continues to improve, this year’s state budget is nearly back to pre-pandemic levels.

During the crafting of this year’s budget, JBC leaders articulated three overarching goals: restore funding to critical programs and services, support our most marginalized and underserved Coloradans, and invest in Colorado’s future to make our state more financially resourceful and resilient.

Highlights of restored funding include:

• $480.3 million to reduce the budget stabilization factor – bolstering school funding levels for the next two years. 

• $473 million for state institutions of higher education. 

• $380 million for future Public Employees’ Retirement Association Direct Distribution payments.

• $124 million for 2021 transportation legislation. 

• $100 million to the State Education Fund. 

Highlights of investments made in the most vulnerable Coloradans include:

• $707.5 million for medical and long-term services and supports provided through Medicaid. 

• $87 million for county administration of SNAP benefits. 

• $48.2 million for hospitals that serve a disproportionate share of low-income patients.

• $6.5 million to the Rural Connectivity project. 

• $5.9 million to address health care disparities. 

• $1.9 million to support Colorado’s implementation of the National School Lunch Program.

• $910,000 for behavioral health services for children in crisis. 

Highlights of investments made to enhance Colorado’s resiliency include:

• $327.1 million for state infrastructure and information technology projects. 

• $201 million to fund the State Emergency Reserve. 

• $50 million to fund 2021 legislative proposals including policies to combat climate change, spur job creation, and reduce the cost of prescription drugs.

• $100 million to the Building Excellent Schools Today (BEST) Fund. 

• $13.2 million for the Wildfire Stimulus Package. 

• $208,273 for the Just Transition Office. 
   

The budget also sets aside $800 million for the legislative stimulus package, which includes appropriations to support agricultural communities, infrastructure, rural economic development, school investment, and job creation.

The Long Bill will now move to the House for consideration. To read the full narrative of the state budget, visit: http://leg.colorado.gov/publications/fy-2021-22-budget-package-and-long-bill-narrative.