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Colorado forecasts $27 million deficit after Deion Sanders pay raise, NIL payments

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Colorado forecasts  million deficit after Deion Sanders pay raise, NIL payments


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The University of Colorado’s athletic department is projecting that it will run a $27 million deficit during the current fiscal year ending in June 2026, in addition to needing $11.9 million in institutional support from the university and $2.2 million from student fees, according to budget figures obtained by USA TODAY Sports.

Those numbers are not final. The athletic department is hoping to bring that deficit down by the end of June with revenue from donations, sponsorships and concerts at Folsom Field. But it has never reported a deficit that big before, which could potentially leave the athletic department in need of more than $41 million in subsidies from the university, including the institutional support and student fees.

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It also comes at a critical time:

  • Athletic director Rick George announced recently he’s stepping down at the end of the fiscal year in June.
  • Colorado nearly doubled the pay of football coach Deion Sanders in March, giving him a new five-year contract worth more than $10 million annually. His team just finished 3-9 in 2025 as attendance started to wane after selling out his first season in 2023.
  • Like other major college sports programs, Colorado is committed to providing players with up to $20.5 million in annual benefits and direct payments under terms of the NCAA-House legal settlement. That cost is new this year, with the $20.5 million cap going up by 4% next year and the year after.

The latter two costs are the biggest reasons for the projected deficit — the $20.5 million for players and the $10 million per year for Sanders. Colorado previously told USA TODAY Sports in September it was “to be determined” how it would come up with the money to pay for those two big new costs.

Colorado says it won’t cut sports

The projected answer now is that it will run a deficit with the university as the potential backstop for funding.  Asked who would be paying for these expenses if not the university, spokesman Steve Hurlbert said, “The mechanics of that are still to be determined.”

The school said it will “not cut sports nor cut any resources for student-athletes” but will look to cut expenses.

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Hurlbert also stressed tuition money and state funds will not be used to address the deficit.

However, some observers who are familiar with Colorado’s budget expressed skepticism about that claim because money is fungible. The money the university provides to athletics also is discretionary.

“This notion that they’re spending resources that otherwise couldn’t be spent on putting more kids through college or funding cancer research is just absurd,” said Jack Kroll, a former member of the university’s Board of Regents. “There’s no truth to that whatsoever.”

‘The university will have to fill the gap’

The projected revenue for fiscal year 2026 is $136.7 million with $163.7 million in expenses. The biggest expense is football at $60.4 million. The department is still finalizing its numbers for fiscal year 2025, which ended in June 2025, but said it expects a “balanced” budget of $141 million in revenues and expenses for that year, including $24 million in institutional support revenue from the Boulder campus and the university’s president’s office.

Colorado isn’t the only school facing these challenges. In fiscal 2024, at least 33 athletic departments received at least $30 million in university support, including Colorado ($31.9 million), Houston ($38.4 million), Arizona State ($51.7 million) and South Florida ($63.7 million), according to public records collected by USA TODAY Sports in conjunction with the Knight-Newhouse College Athletics Database at Syracuse University.

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The House settlement added a potential new $20.5 million expense to their bills starting July 1, 2025.

At Colorado, last year the university projected a small but growing budget deficit for the campus starting in fiscal 2027. It even told faculty and staff to move forward by “being comfortable with being uncomfortable.” This has led to concerns about how football is paying for its big new expenses.

“With a lame-duck athletic director, a dismal football season, who-knows-what to happen with the (transfer) portal, donor fatigue, the distancing of football leadership from football alums — the prospects for making much of a dent in that deficit seem very slim,” said Roger Pielke, an emeritus professor at Colorado who previously taught sports governance in the CU athletics department. “That would mean that the university will have to fill the gap.”

Follow reporter Brent Schrotenboer @Schrotenboer. Email: bschrotenb@usatoday.com



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Colorado residents face earliest water restrictions ever — a harbinger of worse to come

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Colorado residents face earliest water restrictions ever — a harbinger of worse to come


As a result of a snow drought and a heat wave that have both set records, some Colorado residents face the earliest restrictions on their water use ever imposed.

Denver Water announced Wednesday that it is seeking a 20% cut in water use, asking people to turn off automatic watering systems until mid-May and restricting the watering of trees and shrubs to twice a week.

“The situation is quite serious,” said Todd Hartman, a spokesperson for the utility. “We’re in such a dire situation that we could be coming back to the public in two or three months and saying you’re limited to one day a week.”

It is the earliest in the year that Denver Water has ever issued a restriction, Hartman said.

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Colorado’s snowpack peaked at extremely low levels on March 12 — nearly a month earlier than usual — then cratered during the recent heat wave that cooked nearly every state in the West.

“We already had the lowest snowpack we’ve seen since at least 1981, and now, with the heat wave conditions, we’ve already lost about 40% of the statewide snowpack” since the March 12 peak, said Peter Goble, Colorado’s assistant state climatologist. “Conditions are looking more like late April or early May.”

The water restrictions are a harbinger of what’s to come in many Western states as officials try to manage widespread drought concerns. Nearly every snow basin in the Mountain West had one of its warmest winters on record and is well behind normal when it comes to water supply, according to the U.S. drought monitor. The dwindling snowpack is likely to raise the risk of severe wildfires, hamper electricity generation at hydropower dams and force water restrictions for farmers.

Hartman said nearly every community east of the Rockies, along Colorado’s front range, is in much the same boat as Denver.

City Council members in Aurora are considering similar water restrictions; reservoirs there stand at about 58%, according to the city’s website. In the town of Erie, officials declared a water shortage emergency on March 20 after they observed a massive spike in consumption.

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Gabi Rae, a spokesperson for the town, said Erie was perilously close to having taps run dry because so many residents had started watering their lawns early amid the unseasonable heat.

“We were a day away from running out of water. That’s why it was such an emergency,” she said.

Erie officials demanded that residents stop using irrigation systems altogether.

Goble said this month’s heat wave has set records in every corner of Colorado, sometimes by double digits.

“I can’t remember seeing a single heat wave that broke this many records, and seeing it across such a large portion of the country is certainly eye-popping,” he said, adding: “I’m located in Fort Collins, and we got up to 91 last Saturday. The previous record for March was 81, so we smashed that record. And it wasn’t just one day, either.”

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Skiers at Breckenridge Ski Resort as temperatures reached into the 50s this month. Michael Ciaglo / Getty Images

Denver Water, which serves about 1.5 million residents in the city and its surrounding suburbs, gets about half of its water from the Upper Colorado River Basin and the South Platte River Basin. The latter’s snowpack was at about 42% of normal Tuesday, the utility reported. The Upper Colorado River Watershed was at 55%.

Systemwide, Denver Water’s reservoirs are about 80% full, which is only about 5 percentage points lower than in a typical year.

“That sounds pretty good,” Hartman said. “Except that what we’re not going to be able to rely on is that rush of water that will bring those reservoirs back up, because the snowpack is so low.”

In other words, the snowpack — a natural water reservoir — is mostly tapped already and won’t replenish reservoirs later this spring and into summer, when runoff usually peaks.

In Erie, city workers plan to aggressively police water use until sometime next week using smart meters that monitor residential usage. Rae said the city is also sending utility workers to patrol neighborhoods and look for sprinklers that are turned on.

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“People have been kind of annoyed with how aggressive we were, and I don’t necessarily think they understand the ramifications if we weren’t,” Rae said. “It is an actual serious emergency situation. We were so close to reaching empty, there would literally be no water coming out of the taps — hospitals, schools, fire hydrants, your home would have no water.”

Although the limits on outdoor watering will be lifted soon, Rae expects more restrictions later this spring and summer.



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Suddenly hazy skies in Denver prompt some residents concerned about wildfire smoke to call 911

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Suddenly hazy skies in Denver prompt some residents concerned about wildfire smoke to call 911



Some people who live in the Denver metro area on Thursday afternoon were making calls to 911 after skies became noticeably hazy and winds kicked up. It was due to smoke from wildfires in Nebraska moving into Colorado. A cold front also was moving through the Front Range, and there is dust in the air.

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CBS


The poor air conditions led to reduced visibility downtown after 3 p.m. Several of CBS Colorado’s City Cams showed dust or smoke in the air.

Temperatures were expected to drop by as much as 20 to 30 degrees with the cold front.  

The suddenly dusty skies prompted at least one fire agency to put out a plea to residents to please only call 911 “if you see flames.” That warning was put out by South Metro Fire Rescue, which shared a photo on X of an office building with haze visible outside.

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South Metro Fire


South Metro Fire Rescue said in their post that the smoke is from Colorado’s neighbor to the east. They called it a “significant haze” in the air.

Earlier this month, the Morrill Fire and the Cottonwood Fire burned a significant amount of Nebraska grassland and ranchland. They have mostly been contained by firefighters. Nebraska Gov. Jim Pillen said those two fires combined with several others have burned approximately 800,000 acres of land. On Thursday, Pillen announced that he is signing several executive actions intended to ease the burden caused by the fires.  

There were no wildfires burning in the Denver metro area on Thursday afternoon.

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Colorado homicide suspect wanted in fentanyl-related death arrested in Colombia

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Colorado homicide suspect wanted in fentanyl-related death arrested in Colombia


ARAPAHOE COUNTY, Colo. (KKTV) – A homicide suspect based out of Colorado, wanted in a fentanyl-related death, is back in the state after being captured in Colombia.

The Arapahoe County Sheriff’s Office (ACSO) said 33-year-old Max Arsenault had been on the run since January 17.

Deputies said this stemmed from an incident in May 2023, where deputies responded to a call for a man named Nicholas Dorotik, who was found unresponsive.

ACSO said the cause of death was a mixed drug overdose involving meth and fentanyl, having about three times the lethal amount of fentanyl in his system.

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One year later, Arsenault was arrested. He was scheduled for trial in January 2026 when deputies said he fled the country while on bond three days before the trial was set to start.

He was caught in Medellin, Colombia, on March 4, following a two-month international investigation. He has since been extradited back to Denver, where he is facing charges and awaiting trial.



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