Colorado's economy is forecasted to grow at a slower pace, with an anticipated growth rate of 2.1% in 2026, according to the September economic and revenue forecast from the Governor’s Office of State Planning and Budgeting. This growth rate is projected to be similar to that of 2025, as consumer spending and business investment help mitigate uncertainties surrounding international trade and geopolitical conflicts.
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Governor Jared Polis remarked on the situation, stating, "Despite this, Colorado’s economy is stable."
In addition, Colorado's housing market is showing signs of slower growth compared to national trends. Housing permits in the state began to increase in 2025, contrary to a national decline, and this trend is expected to continue into 2026.
Preliminary figures from the state controller’s office indicate that revenue will fall short of the Taxpayer’s Bill of Rights cap by $175.9 million in the fiscal year 2025-26. As economic growth and corporate profits rise, TABOR refunds are projected to reach $244.4 million in fiscal year 2026-27.
Further forecasts suggest TABOR surpluses of $198.9 million for fiscal year 2027-28 and $334.2 million for fiscal year 2028-29. The state is expected to maintain a balanced budget for fiscal year 2026-27, with a surplus of $65.2 million above the required 13% General Fund reserve.