Budget Hole Grows to $1.6 Billion

Colorado lawmakers will open the January session facing a nearly $1.6 billion shortfall in the 2027-28 budget, state economists told the Joint Budget Committee on Friday.

Medicaid is the engine. Spending has grown about 13.6% a year since 2023, which is nearly twice the pace of the overall budget, driven by the volume and type of services. Long-term care, pharmacy, and behavioral health are among the cost drivers.

“Medicaid alone is causing the vast majority of the issue,” budget director Mark Ferrandino said. Capping the program’s growth at TABOR’s roughly 4% limit would save about $915 million, he told the panel.

Rep. Kyle Brown, D-Louisville, said spending must be reined in so Medicaid doesn’t crowd out schools and other core services. Rep. Rick Taggart, R-Grand Junction, has pressed the administration on whether the money is buying better health outcomes.

Revenue projections actually improved slightly from June. Gov. Jared Polis delivers his final budget proposal in November.

FEMA Denies Colorado Fire Aid

FEMA has denied the individual assistance Colorado sought for families burned out by the Aspen Acres Fire and the flooding that followed, the governor’s office said Friday.

The rejection also covers hazard mitigation money. The aid would have paid for temporary housing, home repairs, and disaster unemployment in Pueblo and Custer counties.

“I am disappointed that Colorado was denied these additional portions of our request,” Polis said, adding that the state is weighing its options. Colorado has 30 days to appeal.

FEMA had already approved the debris-removal portion of the August request, which also covered the Gold Mountain Fire near Ouray. The agency has not said why it turned down the rest.

Aspen Acres destroyed 324 homes, more than any Colorado fire since the 2021 Marshall Fire. By late summer it had burned 102,004 acres and stalled at 82% containment.

Downtown Towers Sell at Deep Discounts

Four large downtown Denver office towers have changed hands recently for a fraction of what they once fetched.

Two buyers are local and two are out-of-state investment firms. The University of Colorado paid $27.95 million in August for Independence Plaza, a 25-story tower the previous owner bought for $144.5 million in 2007.

The 17-story building at 216 16th Street, long known as Columbine Place, went to auction in July with an opening bid of $700,000. Denver’s assessor valued the land and structure together at $11.9 million.

Downtown office vacancy was 38.6% in the second quarter, the first quarterly decline since 2024, CBRE reported. The central business district still sits near 44%, while LoDo is under 20%.

Denver’s Downtown Development Authority has committed $92 million in loans to turn empty offices into apartments.

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➤ Statewide: Foreign actors breached two small private water providers serving fewer than 200 people, Gov. Jared Polis’s office said, altering equipment settings and shutting off remote access and alarms in late August. The providers fixed the problems and water quality was not affected. (See Details)

➤ Statewide: Air-quality regulators approved a third and final set of methane rules Friday, making Colorado the first state to write regulations under the EPA’s “Quad OC” standards. Operators must inspect emissions equipment more often and repair leaks faster. (More)

➤ Also Statewide: Unemployment hit 4% in August, the first time since June 2025, with 128,000 Coloradans out of work. Employers shed 1,400 jobs, the third monthly decline this year. The national rate held at 4.1%. (See Report)

➤ Centennial: Defense attorney Neil Camera, 36, and his client, inmate Dominic Villanueba, 37, face felony charges over an alleged scheme to move methamphetamine and marijuana inside the Arapahoe County jail. A body scanner turned up the drugs in May. (More)

➤ Colorado Springs: The Downtown Partnership endorsed Issue 7A, the November measure funding passenger rail to the city. It would add a third-of-a-penny sales tax within five miles of a station across 31 communities. One rail board member voted against referring it. (See Details)

➤ Statewide: Colorado farmers and ranchers will share more than $13.7 million in federal conservation grants announced Friday. The awards run from $20,000 to $300,000 and cover cover-cropping, no-till, rotational grazing, and irrigation management over about two years. (See Details)

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➤ The Denver Broncos will host the Jacksonville Jaguars today for the team’s home opener, marking the first time Colorado football legend Travis Hunter will play in the state of Colorado since his 2024 Heisman season. (More)

➤ Colorado football scored its lone touchdown in the third quarter and committed four turnovers in a 41-7 loss at Northwestern. (More)

➤ Meanwhile, Colorado State surrendered 559 yards in a 41-23 home loss to No. 11 BYU, as a 16-point fourth quarter failed to spark a comeback. (More)

➤ The Colorado Rockies have just seven games left to help avoid a fourth consecutive 100-loss season. The team was on pace to avoid that fate for much of the season until a rough stretch saw the Rockies lose 10 of 11 games. (See Standings)

➤ Yesterday’s Results: NCAAF | MLB | WNBA | Soccer | Golf | NASCAR

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➤ The Blue Angels headline the Grand Junction Air Show on Oct. 3 and 4, the airport’s first since 2023. Nobody parks on site this year: ticket holders reserve a lot around town and ride a free shuttle in. (See Details)

➤ Oktoberfest returned to the historic Cross Orchards site in Grand Junction on Saturday, with 14 acres dedicated to train rides, live music, a costume contest, cider, and beer from local brewers. (More)

➤ Thousands gathered at Memorial Park in Colorado Springs on Saturday for the 40th Fallen Fire Fighter Memorial, adding the names of firefighters who died in 2025. (Read Story)

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The following stories are featured exclusively on The Flyover Podcast—a daily show that gives you the most important headlines in under 15 minutes, straight from the heart of the country. 

➤ The world’s most valuable company wants the AI race to move even faster. (Hear More)

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Check out this POV of a train ride through the mountains on the Durango & Silverton Narrow Gauge Railroad.

Have you ever been to an air show?

1. Yes, more than once
2. Once
3. Never

Yesterday’s Results:

Have you ever skied St. Mary’s Glacier?

1. No: 92%
2. Yes: 8%

Which state, other than Colorado, has borders drawn with four entirely straight lines?

Show me the answer