While Colorado’s majority Democrats lament the state’s persistent budget challenges, Florida’s Republican majority just celebrated reducing spending for a second consecutive year in another business-as-usual state budget.
Colorado legislators have plenty of lessons they could learn from Florida, instead, they are more likely to double down on more tax and spend, economy-wrecking policies.
How the States Compare
Governor Jared Polis recently signed a $46.8 billion state budget, an almost 7 percent increase over last year’s $43.9 billion in spending, this despite legislators’ constant catastrophizing about Colorado’s “budget shortfall.”
That amounts to approximately $7,800 for every Coloradan.
Despite the substantial spending increase, a quiet pay raise for legislators, and a recoupment of TABOR refunds, legislators still claim that they don’t have enough taxpayer money.
Meanwhile, despite yet another budget surplus, Florida’s government actually reduced spending for the second year in a row.
Florida’s $114.5 billion budget appears much larger than Colorado’s at first glance, but accounting for population, it represents approximately $4,850 per Floridian, or less than two-thirds the size of Colorado’s budget.
Also, both states have comparable cost of living, meaning Floridians keep thousands more of their own money than do Coloradans.
While both states tend to fare similarly in national economic rankings, Florida has remained in the top five for tax competitiveness since 2020, while Colorado moved from 22nd to 33rd, according to the nonpartisan Tax Foundation.
And while Colorado’s in-migration is starting to sputter, Florida remains the nation’s number one destination.
Essentially, Florida is currently selling mobile Americans a more appealing product with a significantly lower government price tag than Colorado.
Policy Choices Matter
Colorado’s legislators often try to present to voters that they are thrust into fiscal situations beyond their control and that only out of desperation do they try to undermine taxpayer protections or seek tax increases.
For example, recent claims cite the One Big Beautiful Bill Act (OBBBA) as the latest reason to end revenue restrictions under the Taxpayer’s Bill of Rights (TABOR) and raise taxes.
In reality, Colorado lawmakers consistently make short-term decisions that feel good and help them win elections, regardless of whether the state actually has the money to cover the costs.
For example, Colorado chose to adopt Medicaid expansion, resulting in higher enrollment and costs consistent with most other expansion states; Florida did not.
Colorado chooses to subsidize school meals for kids whose parents can afford them; Florida does not.
Colorado chose to expand its fiscal responsibilities and reduce revenue through special interest tax breaks funded by one-time COVID stimulus money, while Florida enjoyed its 0 percent income tax.
Florida regularly handles major emergencies, such as hurricane damage, while staying fiscally sustainable.
Choices Have Consequences
Colorado and Florida have both made their choices, which are now playing out in real time.
As things currently stand, Colorado could learn a lot from Florida on economic and fiscal policy.
Instead, the state is poised to double down on measures that would erode taxpayer protections, hurt businesses, and raise billions more in taxes.
Senate Bill 135 (on the November ballot as Proposition NN) would fundamentally alter the TABOR formula, permanently raise the revenue cap by billions of dollars while removing taxpayer safeguards, basically giving the watchmen under the gold dome the authority to “watch” over themselves.
Initiative 195, in the signature-gathering phase, would result in an immediate $2.7 billion in increased taxes in the first year alone (according to the most recent estimates), hurting Colorado’s already struggling small businesses.
Even though envy is the thief of joy, Coloradans should know that it does not have to be this way — other states, like Florida, are presenting an inspiring path to both grow the economy while meaningfully restraining government growth.
Let’s be more like Florida.
