What to Watch in Colorado’s Special Session
Today, Colorado lawmakers reconvene at the Capitol for a special session focused on addressing a projected $900 million state budget shortfall. But the session’s scope goes beyond basic budget balancing – it could have ripple effects across education, workforce, and innovation policy for years to come.
Here’s a quick breakdown of what’s in play, and what Colorado Succeeds is watching:
Balancing the Budget
A recent federal tax law (H.R. 1) triggered a projected $1.2 billion drop in Colorado’s revenue this fiscal year, due to the state’s automatic link to the federal tax code. That’s forced lawmakers to revisit the state budget just weeks after it went into effect. Legislators are expected to consider proposals that:
- Reduce the statutory reserve from 15% to 13%
- Repeal or pause recently enacted tax credits (including some that haven’t yet taken effect)
- Postpone or trim discretionary spending items in the 2024–25 budget
Why it matters: While the 2026 budget was likely to face shortfall challenges, the enacted federal legislation puts pressure on lawmakers now to fund the remainder of 2025. Colorado Succeeds will be focused on how policymakers protect progress on key priorities like student-centered funding, postsecondary access, and pathways to high-wage careers.
Revisiting Colorado’s AI Regulation
Originally passed with the intent to protect consumers and students, Senate Bill 24-205 introduced sweeping new rules for the use of artificial intelligence in consequential decisions like hiring, admissions, and instruction.
Concerns about the law’s unintended effects, especially in schools and small businesses, emerged both during debate and after its passage.
New proposals aim to:
- Delay implementation by one year (to 2027)
- Narrow the scope of the law to exclude K–12 institutions, colleges, and certain small employers
- Clarify definitions and compliance requirements to avoid stifling innovation
Why it matters: Across the country, artificial intelligence (AI) is beginning to reshape both how students learn and careers in our current workforce. AI holds enormous potential to enhance instruction, personalize learning, and prepare learners for their futures. Colorado must strike the right balance between regulation, opportunity, and innovation.
Other Key Topics: Health Care & Fiscal Oversight
While the budget and AI are the most relevant for education and workforce partners, other bills are expected to focus on:
- Preserving access to health services
- Addressing the cost of private health insurance
- Improving financial transparency and government oversight
More than two dozen bills have already been previewed by legislators, with more possible. The session is expected to continue through the weekend and may conclude early next week.
As we look ahead to 2026 and beyond, Colorado Succeeds remains committed to ensuring that our state builds systems that set students up for success in college and career. Colorado businesses depend on a strong pipeline of well-prepared, homegrown talent.
Colorado Succeeds will continue to monitor developments and meet with policymakers to provide insights into how legislative action affects Colorado learners, business, and our economy, as well as exploring the deeper implications of AI on the education to employment pipeline.
For additional information, read more via The Colorado Springs Gazette, The Colorado Sun, The Denver Post, and The Sum & Substance.
