Colorado Gov. Jared Polis on Friday, May 8, signed into law a $46.8 billion state budget that cuts healthcare spending but preserves funding for K-12 education. 

The budget applies to the 2026-27 fiscal year, which begins on July 1, and caps months of work by lawmakers, who wrestled with how to close a roughly $1.5 billion gap that ultimately forced reductions to Medicaid funding and other programs. 

“This year was incredibly difficult and challenged each of us in a myriad of ways that put our values to the test,” said Rep. Emily Sirtota, a Denver Democrat and chair of the bipartisan Joint Budget Committee, which crafts the state’s spending plan before it is voted on by the full legislature. “It’s a zero-sum game. A dollar here means a dollar less over here.” 

The state’s spending gap was the result of several factors. 

The legislature is limited in how it can spend under the Taxpayer’s Bill of Rights, or TABOR, an amendment to the state constitution approved by voters in 1992 that limits government revenue growth to the rate of population growth plus inflation. 

Lawmakers are also dealing with the consequences of increased spending on programs they created or expanded in recent years, some of which have seen their costs balloon beyond their original estimates. Costs for Medicaid services, in particular, have surged, driven by inflation, expanded benefits and greater demand for expensive, long-term care services due to Colorado’s aging population. 

Medicaid cuts 

Medicaid recently eclipsed K-12 education as the single-largest chunk of the state’s general fund and now accounts for roughly one-third of all spending from that fund. 

Lawmakers, who are required by the state constitution to pass a deficit-free budget, said they had no choice but to cut Medicaid funding as a result. 

That includes a 2% reduction to the state’s reimbursement rate for most Medicaid providers. The budget also institutes a $3,000 cap on adult dental benefits, limits billable hours for at-home caregivers of family members with severe disabilities to 56 hours per week and phases out, by Jan. 1, automatic enrollment for children with disabilities to receive 24/7 care as adults.

The budget also cuts benefits and places new limits on Cover All Coloradans, a program created by the legislature in 2022 that provides identical coverage as Medicaid to low-income immigrant children and pregnant women, regardless of their immigration status. 

That includes an end to long-term care services for new enrollees, a $1,100 limit on dental benefits, and an annual enrollment cap of 25,000 for children 18 or younger. The cuts come as spending on the program has grown more than 600% beyond its original estimate, going from roughly $14.7 million to an estimated $104.5 million for the 2025-26 fiscal year. 

While the budget still represents an overall increase in Medicaid spending compared to this year, funding is roughly half of what it would have been had lawmakers not made any changes to benefits and provider rates, which total about $270 million in savings for the state. 

Healthcare leaders say the cuts will exacerbate an already challenging environment for providers, who are bracing for less federal support after Congress last year passed sweeping Medicaid cuts and declined to renew enhanced subsidies for the Affordable Care Act. 

For rural hospitals in particular, Medicaid is one of their key funding drivers. 

“While a 2% (Medicaid reimbursement rate cut) doesn’t sound like a whole lot, when we already have close to 50% of our rural hospitals statewide operating in the red and 70% with unsustainable margins, facing another 2% (cut) on top of that is just devastating,” said Michelle Mills, CEO for the Colorado Rural Health Center, which represents rural hospitals on the Western Slope and Eastern Plains. 

If the state provides less reimbursement for Medicaid services, Mills said it will lead to fewer providers accepting Medicaid plans. That in turn will mean fewer care options for people, particularly in Colorado’s rural counties, where healthcare services are already more limited. 

“I feel like all of the decisions and cuts that they’re making are hitting everyone,” she said. 

Rep. Rick Taggart, a Grand Junction Republican and budget committee member, said cuts to healthcare led to “a lot of tears.” 

“This was a tough budget, and nobody won in this budget, but we did what we had to do by way of the (state) constitution,” he said. 

While Medicaid saw some of the biggest cuts, lawmakers also trimmed spending from a suite of other programs, including financial aid for adoptive parents and grants providing mental health support for law enforcement. 

Preserving K-12 education 

One of the brighter spots for Polis and lawmakers in the budget is K-12 education. 

After years of chronically underfunding the state’s schools, lawmakers in 2024 rolled out a revamped funding formula and abolished what was known as the budget stabilization factor, a Great Recession-era mechanism that had allowed the state to skirt its constitutional funding obligation to schools for more than a decade.

The new funding formula went into effect this school year, and the state is set to continue delivering higher levels of K-12 funding in the 2026-27 fiscal year budget. The budget allocates roughly $10.19 billion in K-12 funding, an increase of roughly $194.8 million, though the specifics of that spending are still being worked out in a separate bill, the 2026 School Finance Act, which has yet to pass the legislature. 

The finance act guides how state and local funds are allocated to Colorado’s 178 school districts on a per-pupil basis. As it stands now, the bill is on track to increase per-pupil funding by $440 per student for the 2026-27 fiscal year, for a total of $12,314 per student.

“We are not returning to the days of underfunding our schools and a budget stabilization factor,” Polis said.

Still, there are challenges on the horizon for some districts. 

Combined with a proposed three-year averaging model for student counts instead of the current four-year averaging, recent dips in student enrollment across the state will weigh more heavily on how much funding is allocated to each district. The shift to three-year averaging advances the state’s plan to gradually phase in the new school finance formula by 2030-31.

With several districts seeing decreased year-over-year enrollment and rising operational expenses like healthcare, some Western Slope school districts are poised to see less funding compared to this year, while others are seeing their increases eaten up by inflation.

A note on wolves 

The topic of Colorado’s spending on gray wolf reintroduction hasn’t gone away, and while Medicaid headlined much of the budget discussions, lawmakers also used the spending plan to send a message on the future of the wolf program. 

While the budget allocates $2.1 from the general fund to Colorado Parks and Wildlife to spend on wolf reintroduction, it also contains a footnote from lawmakers asking the agency not to use the money to acquire new wolves. 

Footnotes are not legally binding, but rather serve as a direction or guidance from lawmakers to agencies on how they want certain funds spent. 

Under the footnote, the wildlife agency could still use gifts, grants, donations and non-license revenue from its wildlife cash fund to bring additional wolves to Colorado. Most of the agency’s wolf funding goes toward personnel, followed by operating costs, compensation for ranchers and conflict minimization programs and tools.

Education reporter Andrea Teres-Martinez and wildlife and environmental reporter Ali Longwell contributed to this story. 

A widespread cyberattack targeting the learning platform Canvas is disrupting thousands of schools across the country, including in Colorado. It’s hitting students at one of the worst possible times: finals week.

Cybercriminal group ShinyHunters claimed credit for the attack, breaching systems tied to Instructure, the company that runs Canvas. Canvas is used by 41% of higher education institutions across the country to deliver courses. Millions of K-12 students rely on the platform as well.

In Colorado, more than 20 schools, including Colorado School of Mines, Metropolitan State University of Denver, the University of Denver, the University of Colorado Boulder, Colorado State University, and the University of Northern Colorado, have been affected by the cybersecurity attack.

The group is attempting to extort the company, threatening to release massive amounts of student data if demands are not met.

For students like Flannery Headley, a political science major at MSU Denver, the disruption is more than an inconvenience — it’s a major source of stress.

“The moment I tried to click on something, it gave me this maintenance down page,” she said. “I started Googling things, and I saw this whole thing about the hack.”

Headley says she was working on assignments when Canvas suddenly stopped functioning.

MSU sent out guidance telling students not to log into Canvas and to wait for updates from professors.

Like many students, Headley is now left in limbo, unsure how finals will be submitted or graded.

“This final I’ve spent the last week working on might not matter,” she said. “At least one of my grades is hinging on another final, whether I’m going to pass or fail.”

The attackers claim to have stolen large amounts of data, including names, student ID numbers, email addresses, and academic records.

Experts say the real risk may not just be disruption, but what happens next.

“The worst they could do is release it,” said MSU Denver computer science professor Steve Beaty. “There’s been minor leaks and breaches and these sorts of things from time to time, but nothing on the scale of this.”

Beatty says the group claims to have terabytes of student data, which could include personally identifiable information protected under federal privacy laws. If released, that information could be used for scams, identity theft, or further cyberattacks.

Canvas is a cloud-based system used by thousands of institutions, meaning a single attack can have massive ripple effects.

“They took the entire Canvas infrastructure down,” Beatty said. “That affects about 9,000 schools, tens of thousands of people in Colorado alone.”

Right now, schools are scrambling to find workarounds, from email submissions to alternative testing methods.

There is no current timeline for resolution. The hacker group has set a May 12 deadline for the company to respond before potentially releasing the data.

Until then, students like Headley are left waiting, hoping their work doesn’t disappear.

“I’m going to keep working on my finals,” she said, “but I’m not sure what that’s going to look like.”

BOULDER, Colo. — A man was sentenced to life in prison without the possibility of parole after pleading guilty Thursday to killing one person and injuring a dozen others in a 2025 firebombing attack on a demonstration in Boulder, Colorado, in support of Israeli hostages in Gaza.

Subscribe to read this story ad-free

Get unlimited access to ad-free articles and exclusive content.

Advertisement

Mohamed Sabry Soliman looked down at a desk throughout the sentencing. He has meanwhile pleaded not guilty to federal hate crime charges for the attack last June. Prosecutors are weighing whether to seek the death penalty in the federal case, according to his attorneys.

Authorities say Soliman threw two Molotov cocktails at demonstrators at a pedestrian mall in downtown Boulder, a city of 100,000 people northwest of Denver that’s home to the University of Colorado.

Karen Diamond, 82, was injured in the attack and later died. A dozen others were also injured.

Soliman is an Egyptian national who federal authorities say was living in the U.S. illegally. Investigators allege he planned the attack for a year and was driven by a desire “to kill all Zionist people.”

Speaking to the court through an interpreter for nearly a half hour, Soliman offered apologies to the victims and condolences for Diamond’s death. “There are no words that can express my sadness for her passing,” Soliman said.

He said he wasn’t asking for leniency at sentencing for his convictions in state court and wants prosecutors pressing federal hate crime charges against him to seek the death penalty.

“If I went back, I would not have done this as this is not according to the teaching of Islam,” Soliman said. “What I did came out of myself and only myself.”

District Attorney Michael Dougherty said Soliman’s guilty pleas don’t show an acceptance of responsibility but rather “a surrender to the strength of the evidence” against him. Despite Soliman’s claims he doesn’t hate people who practice the Jewish faith, Judge Nancy Salomone concluded Soliman targeted the victims because they were Jewish. “You chose a time and a place and a set of circumstances and weapons that were designed to inflict the most pain that you could,” the judge said.

In a statement read earlier in court by a prosecutor, Diamond’s sons asked that Soliman not be allowed to see his family again “since he is responsible for our mother never seeing her family again.”

Andrew and Ethan Diamond said their mother suffered “indescribable pain” for over three weeks before her death. “In those weeks, we learned the full meaning of the expressions ‘living hell’ and ‘fate worse than death,’” Diamond’s sons said in the statement.

Soliman’s federal attorneys have said in court filings the attack “was profoundly inconsistent” with Soliman’s prior conduct and “came as a total shock to his family.”

At the time of the attack, Soliman had been living with his family in a two-bedroom apartment in Colorado Springs — about 97 miles away. He had moved to the U.S. from Kuwait in 2022 with his wife and their five children and worked in a series of low-paying jobs.

The couple divorced in April.

Investigators allege Soliman told them he intended to kill the roughly 20 participants at the weekly demonstration at Boulder’s Pearl Street pedestrian mall. He threw two of more than two dozen Molotov cocktails he had with him while yelling, “Free Palestine!”

Police said he told them he got scared because he had never hurt anyone before.

Federal prosecutors allege the victims were targeted because of their perceived or actual connection to Israel. Soliman’s federal defense lawyers argue he should not have been charged with hate crimes because he was motivated by opposition to Zionism, the political movement to establish and sustain a Jewish state in Israel.

An attack motivated by someone’s political views is not considered a hate crime under federal law.

State prosecutors have identified 29 victims in the attack. Thirteen were physically injured. The others were nearby and considered victims because they could have been hurt. A dog was also injured in the attack, and Soliman was charged with animal cruelty.

Soliman’s wife, Hayam El Gamal, and their children spent 10 months in immigration detention until a federal judge in Texas ordered their release in April.

An immigration appeals court had dismissed their case to stay in the U.S. and issued a deportation order. But U.S. District Judge Fred Biery in San Antonio allowed their release on the condition that El Gamal and her oldest child, who is 18, wear electronic monitoring.

Soliman’s attorneys seek to block the family’s deportation until a judge determines they won’t need to be present for court proceedings in his federal case.