Gov. Jared Polis calls special session for Colorado Legislature

Gov. Jared Polis announced Wednesday morning that he's calling a special session for the Colorado State Legislature. The special session will convene on Aug. 21.  

Polis cited the passing of H.R. 1 in Congress, also known as the "One Big Beautiful Bill", as part of the reason for the special session. Before the news conference began, Polis put the bill, totalling thousands of pages, on the table beside the podium where he was speaking. 

H.R. 1 was passed by Congress and signed into law by President Trump on July 4.   

Polis said during a news conference on Wednesday morning that before Congress passed that bill, Colorado had a surplus. 

"What has the urgency of what we are going to be announcing today is the revenue impacts to the current year that we are in that throws the state budget out of balance, that costs… over a billion dollar loss of revenue," said Polis. "And that billion-dollar loss of revenue leads to a hole in the budget of over $700 million."

Polis said that Colorado has to operate within a balanced budget, and that is part of the reason for the special session. He mentioned the corporate tax changes in the bill as having a negative impact on Colorado taxpayers. 

Polis said the bill passed by Congress does have some positive benefits for Coloradans, like no taxes on tips. 

"The simple reality is that H.R.1 immediately cuts Colorado's revenue, making it so that our budget is no longer balanced and that our TABOR refund has been taken away for this fiscal year. All options are on the table, and we look forward to working with the General Assembly to find the best possible solution in these truly challenging circumstances caused by the federal reconciliation bill," said Office of State Planning and Budgeting Director Mark Ferrandino in a statement.

Democratic state Sen. Jeff Bridges, chair of the Joint Budget Committee, said closing corporate tax loopholes is needed to help fund essential services.

"This special session is a direct response to cuts that were made by H.R. 1," he said. "If these corporations are getting massive cuts in other ways, we know that in order to protect K-12 public education, to protect higher ed, public safety, public lands, we have to make sure that we have the resources to do that. And, closing some of those tax loopholes is one way to do it." 

House Republican leadership, however, called the special session "an unnecessary and expensive political stunt."

"This is a waste of taxpayer dollars and state resources," said House Minority Leader Rose Pugliese in a statement. "The Governor is using a special session to stir fear about the Big Beautiful Bill when the truth is that the Big Beautiful Bill continues to cover the people it was designed to serve: seniors, single mothers, children, and people with disabilities."

Republican state Sen. Barb Kirkmeyer, who's also on the State Senate's Joint Budget Committee, raised alarms on potential tax hikes.

"I'm concerned with what he posted in his call about essentially wanting to increase taxes on businesses to solve a problem that he and the other one-party control Democrats caused over the course of the last four years," she said. "Last March, the chief economist for the state and our director of the Joint Budget Committee, Mr. (Craig) Harper, put out a document that said we are on an unsustainable path and that we needed to stop spending on those things that are not core functions."

Polis also made other announcements, including a hiring freeze for the State of Colorado that begins Aug. 27 and will continue through the end of the year. 

"That will impact state positions except for the necessary health and safety positions; we're not freezing firefighters, prison guards, 24/7 facilities, but the vast bulk of state positions will be frozen until the next calendar year," said Polis. 

Polis estimates the hiring freeze will save the state $3 million.

"When we have a special session, we have to ask ourselves, are there other things we could benefit from if the legislature looks at them now rather than waiting until January? Is there a benefit to this state?" asked Polis. 

Polis said during the special session, legislators will also look at health insurance premiums in the exchange, look at the artificial intelligence issue, and have a chance to update a ballot initiative that supports a free lunch program.