DISPATCHES FROM THE BLUE ZONES: A deep dive into Colorado’s billion-dollar budget deficit.

In a recent episode of Independence Institute’s* public affairs TV show, Devil’s Advocate, host Jon Caldara and the state’s chief economist, Greg Sobetski, dive deep into Colorado’s more than one billion-dollar budget shortfall, finding, among other things, pandemic-era funding, rising Medicaid costs, and federal tax changes as major culprits.

Sobetski explains that during COVID, Colorado enjoyed a glut of federal aid and higher-than-expected revenues. Rather than using that money for short-term needs, the legislature instead spent down those reserves propping up ongoing spending obligations, leaving lawmakers scrambling to sustain a bigger state budget without the one-time money that had been keeping things afloat.

The two also look at runaway Medicaid spending, with Caldara arguing Colorado expanded the program too far, including able-bodied adults and illegal immigrants, and now risks harming more vulnerable recipients when the inevitable cuts come.

The podcast is titled, “Is Colorado Broke?”

We’re still on the “gradually” part, but the “suddenly” part always comes, well, suddenly.