2025 Special Session

Thank you for your continued engagement and support. Our six-day Special Legislative Session, which ran from August 21–26, was focused on finding solutions to stabilize Colorado’s budget while setting a path forward on emerging issues such as artificial intelligence.

Strengthening Executive–Legislative Collaboration (SB 25B-001)

I co-sponsored SB 25B-001, which increases transparency and collaboration between the Governor and the legislature during fiscal crises.

• Requires the Governor to consult with the Joint Budget Committee before reducing or suspending programs.

• Updates the reserve-fund trigger from 50% of the reserve to 3% of the General Fund ($510 million versus $1.2 billion).

• Ensures decisions are based on fiscal analysis and legislative oversight.

Artificial Intelligence: Thoughtful Pace versus Hasty Decisions and Implementation

The legislature revised Colorado’s AI law to ensure thoughtful, balanced regulation:

• SB 25B-004 extends the timeline, giving policymakers, deployers (businesses, school districts, universities/colleges), and developers time to get it right.

This approach safeguards consumers while preventing over-regulation that could stifle innovation. It is essential to maintain a balanced approach, as both sides have significant stakes in the outcome and bring important, legitimate perspectives to the discussion. Addressing such an important issue requires more than the six days of a special session, which is why we will return during the regular session to work toward a balanced, long-term solution.

Tax Policy: Impact on Businesses

To resolve an $800 million budget shortfall, the legislature enacted several bills—measures I worked diligently to oppose—that regrettably place additional burdens on businesses, the backbone of Colorado’s economy.

• HB 25B-1001 & HB 25B-1005 – These measures roll back long-standing deductions, including the Qualified Business Income (QBI) deduction, for pass-through organizations such as LLCs, Subchapter S corporations, Limited Partnerships, and Sole Proprietorships. HB 1005 also eliminates the vendor fee—a small reimbursement provided to businesses for collecting and remitting sales taxes on behalf of the state—thereby increasing costs for local businesses.

• HB 25B-1004 & HB 25B-1006 – These measures address the sale of tax credits for insurance companies and C-corporations. These companies can purchase tax credits at approximately 80 cents on the dollar, effectively allowing them to reduce their tax liability. While intended to incentivize certain investments, this approach raises concerns about fairness and the impact on smaller businesses that do not have similar access to these credits.

While budget stability is important, I am concerned about the long-term consequences of asking small businesses to shoulder so much of the burden. These businesses are job creators which are the growth engine of Colorado’s economy, and I will continue advocating for more balanced solutions.

Looking forward....

Colorado cannot continue to depend on one-time funds and temporary measures to balance the budget. While these actions may provide short-term relief, they do not address the underlying challenges and create uncertainty for families and providers. We must commit to sustainable budgeting that prioritizes discipline, transparency, and respect for the Taxpayer’s Bill of Rights. Families across Colorado are expected to live within their means, and they deserve a state government that manages its finances the same way. It is time to put forward a budget that is stable, sustainable, and built to last.