Budgets are fundamentally about numbers, fiscal projections, and legislative balancing acts, but for the thousands of individuals and families who rely on state-supported care, they represent something far more personal and immediate: the essential services that make daily life, independence, and community living possible. This year, the State of Colorado faced an exceptionally difficult fiscal reality, forced to cut more than $1 billion from its overall state budget. The resulting fiscal adjustments have had a profound and unavoidable impact on disability services throughout the state.
On May 8, Governor Jared Polis officially signed the new state budget into law, sealing a package of rigorous spending reductions that lawmakers, state agencies, and community advocates had negotiated through months of tense legislative debate. As state and local organizations begin processing the practical implications of the legislation, families, service providers, and advocacy groups are navigating a complex landscape of shifting timelines, program adjustments, and long-term financial constraints.
Why This Budget Was Especially Difficult
To understand the magnitude of this year’s budget cuts, experts point to the structural realities of Colorado’s Medicaid program and the unique cost drivers associated with Long-Term Services and Supports (LTSS). Individuals who receive LTSS—comprising critical care mechanisms such as in-home assistance, adult day programs, and specialized residential care facilities—make up a distinct minority of the state’s total Medicaid population, accounting for roughly 5 to 6 percent of members.
Yet, despite serving a relatively small fraction of the broader Medicaid demographic, these services account for approximately 45 percent of total Medicaid spending in Colorado. This disproportionate expenditure is not the result of administrative inefficiency or policy mismanagement; rather, it reflects the intensive, highly individualized, and ongoing nature of the care required by individuals with significant developmental, physical, and cognitive disabilities. In short, this financial dynamic represents a structural reality that must be funded rather than a budgetary problem that can be easily fixed.
This inherent gap between the breadth of the population served and the depth of resources required has made it increasingly difficult for the state to keep pace with the rising costs of comprehensive care. State budget planners note that these fundamental fiscal pressures will continue to drive difficult decisions for lawmakers and state agencies for years to come, forcing a continuous reevaluation of how Colorado finances its safety-net programs.
We Hear You: Navigating Frustration and Advocacy
In the wake of the budget’s passage, many families, self-advocates, and service providers have voiced deep frustration. Their concerns extend beyond the substantive programmatic changes themselves to encompass the frequency with which rules, timelines, and operational guidelines shifted throughout the legislative process. That frustration is widely understood and has been felt across the entire community, echoing among frontline case managers, institutional partners, and state-level administrators alike.
Throughout the legislative session, organizations such as DP actively engaged in state-level budget advocacy to represent the interests of vulnerable Coloradans. This advocacy included submitting formal public comments on proposed policy changes, holding direct meetings with state legislators, legislative staff, and representatives from the Colorado Department of Health Care Policy and Financing (HCPF), and collaborating closely with community partners, individuals, and the families who rely on these services.
The decisions facing lawmakers this session were exceptionally challenging, and advocates worked tirelessly to ensure that decision-makers fully understood the human impact these cuts would inflict on supported individuals, their families, frontline case managers, and service providers. At the same time, these efforts focused on pushing to minimize harm within an intensely constrained budget environment.
The formulation of the state budget is influenced by a diverse array of stakeholders, including elected officials at the state and federal levels, federal Medicaid administrators, volunteer board members, and career state agency staff. Because these are inherently complex, multi-layered decisions driven by competing statutory obligations and fiscal limitations, there are no simple answers or painless solutions to Colorado’s structural budget deficits.
For those seeking additional context regarding the systemic pressures that shaped this year’s legislative cycle, background information is available through public resources detailing Colorado’s budget process and federal policy implications, such as analyses concerning federal legislation like HR1 and its downstream effects on state-level funding mechanisms.
Questions and Support for Affected Families
For individuals and families concerned about how these sweeping budgetary adjustments may impact their specific care plans, living arrangements, or daily assistance, navigating the transition can feel overwhelming. State and local agencies emphasize that local case managers remain the primary and most reliable resource for personalized guidance. Anyone with questions regarding how these changes may affect specific services is encouraged to reach out directly to their designated case manager, who can provide tailored information and help interpret what the new legislative landscape means for individual households.
We’re In This Together
As Colorado’s disability community adjusts to the realities of the newly enacted budget, community leaders are emphasizing the importance of solidarity, resilience, and mutual respect. Stakeholders have expressed sincere gratitude to the individuals, families, self-advocates, service providers, case managers, and state and community partners who continue to show up, speak out, and advocate tirelessly for the rights and needs of people with disabilities, even when the path forward appears uncertain and difficult.
At the same time, advocates and agency leaders emphasize that the manner in which community members treat one another during times of crisis matters deeply. The public servants, state employees at HCPF, board members, and committee participants working on these intricate issues care profoundly about the well-being of the disability community. They operate as partners navigating an extraordinarily difficult financial environment alongside families and advocates.
While disagreement is natural and frustration is entirely valid, the community is built upon a foundation of dignity and respect. That core principle must extend to every interaction, even amid deep policy disagreements and administrative challenges. Moving forward, stakeholders are encouraged to approach ongoing advocacy and community engagement with the same grace and humanity that define the daily fight for the rights and inclusion of individuals with disabilities.
Editor’s note (Updated June 2, 2026): This post has been revised to clarify the effective dates for upcoming changes. DD Churn changes take effect July 1, 2026. Changes related to youth transitions have been delayed and will now take effect on January 1, 2027.
