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A yawning gap in the federal budget may sound abstract, but for rural hospitals, tribal radio stations, and food pantries, it’s painfully real. President Trump and Republicans in Congress have passed two major bills – H. R. 1, the “Big Beautiful Bill,” and H.R. 4, the “Rescission Bill” – that together shift billions from the bottom to the top while blowing a $3 trillion to $4 trillion hole in the federal deficit. However one describes it – clawed back, ripped open, hollowed out – the damage is deep. And you can only cut so far before the foundation crumbles.
Yes, waste and inefficiency exist in every sector – public, private, and nonprofit. But these cuts aren’t about efficiency. They are ideological, arbitrary, and poorly planned. They are already producing real-world harm: lost jobs, canceled funding and projects, rural hospitals at risk of closure, and tribal radio stations struggling to stay on air (Herald, Feb. 20). Trump’s tariffs are adding to the chaos, wreaking havoc on state and local economies.
The consequences are hitting Colorado fast. On Wednesday, Gov. Jared Polis announced a special session of the General Assembly beginning Aug. 21 to address a $783 million revenue shortfall (Herald, Aug. 10). That gap is due to H.R. 1’s increased corporate tax deductions and the additional costs states must now bear for food assistance programs (SNAP) and Medicaid – costs previously shared with the federal government.
This comes on top of the $1.2 billion shortfall the legislature closed at the end of its last session. Lawmakers balanced the books then by leaving state jobs unfilled, cutting millions from transportation projects, reducing funding for local governments, and trimming social programs – including $1 million from food pantries. Even compassionate Colorado had to make painful decisions to keep up with rising education and health care costs.
For years, the Colorado Fiscal Institute has warned about the state’s “structural deficit.” Their research shows how the combination of the Taxpayer Bill of Rights and recent federal tax cuts creates a recipe for long-term fiscal trouble. TABOR caps state revenue growth to inflation plus population, but that formula ignores real cost drivers. It’s based on consumer goods, not the expenses that actually dominate state budgets – salaries, school buses, construction materials – all of which have spiked. Prices initially jumped during COVID-19 due to supply chain disruptions, and Trump’s tariffs are now pushing them even higher.
Because TABOR’s formula doesn’t track these realities, state spending can’t keep pace with the cost of real needs. The result is a slow whittling down – cut after cut after cut – that erodes the public services and infrastructure communities rely on.
This problem is mirrored at the local level. La Plata County, with the fourth-lowest mill levy among Colorado’s 64 counties, is also grappling with a structural budget deficit. It’s strongly considering a sales tax increase ballot question for the November 2025 election to keep up with basic service demands (Herald, April 22, 2025).
At some point, Colorado’s leaders need to confront the root of the problem. That means reexamining TABOR itself. Legislators should consider referring to voters a constitutional amendment that repeals TABOR and replaces it with a system that still exercises fiscal restraint but reflects the real costs of governing and allows legislators, those closest to the issues, the flexibility needed to do so effectively.
No matter where you stand on the proper size and role of government, thriving economies have always relied on some level of public investment – roads, schools, hospitals, public safety, clean air and water. These are the foundations of prosperity. They cannot be maintained on a budget held together with duct tape and wishful thinking.
Budgeting by a thousand cuts only works for so long. Eventually, you hit bone.
The Herald’s editorial board looks forward to a robust public discussion about how to find the revenue our state and local governments need.
