JBC frames 2026‑27 long bill as modest general‑fund rise driven by Medicaid and prisons

Rep. Taggart, a member of the Joint Budget Committee, told colleagues the committee’s proposed long bill for fiscal 2026‑27 would set general‑fund appropriations at roughly $17.39 billion, an increase of about 1.2% over the prior year. He said the net increase masks larger shifts within state government: federal and cash funds have risen, while 13 departments face cuts.

The committee chair said the three largest drivers of the general‑fund increase are Medicaid (HCFA), Corrections and Judicial. “Caseload is our driving force in terms of increases,” Taggart said, describing a roughly $213 million increase for Medicaid and a $69 million rise for Corrections tied largely to medical caseload and staffing pressures. He said the JBC negotiated reductions that trimmed earlier, larger proposals and negotiated carve‑outs for maternal care, NICU and pediatric behavioral therapy.

Why it matters: The long bill is the state’s main appropriations vehicle and will determine which programs grow, which are trimmed and how the state responds to structural pressures such as rising Medicaid costs. Taggart warned that Medicaid’s long‑term growth—averaging 8.8% annually over the past decade—is “unsustainable” and is already crowding other priorities.

Key details and tradeoffs: Taggart walked members through tables showing total funds of roughly $49.5 billion (including federal and cash funds) and reiterated that reappropriated funds can duplicate general‑fund numbers. He said federal funds are up about 10% year‑over‑year—largely Medicaid drawdowns—and cash funds are up about 9.5%, yielding an overall total funds increase of about 6.9%.

On education, Taggart said state share for K–12 is up about $252 million while noting that local shares and a $70 million transfer from school‑lands royalties into the state public school fund complicate headlines that funding was “cut.” On higher education, the JBC reinstated roughly $10.8 million the governor had cut and shifted about $14.2 million to public institutions to limit tuition pressure; the committee also allowed tuition caps of 3.5% (in‑state) and 5% (out‑of‑state).

Staffing and compensation: Taggart emphasized the effect of common‑policy compensation changes across large workforces—he said the judicial department’s compensation impacts for roughly 5,700–5,800 employees add roughly $21 million to that department’s costs, and the Department of Law’s increase reflects market adjustments for district attorneys and assistant district attorneys.

What’s next: The presentation was followed by member questions on community health centers, program audits and small‑program expenditures. Taggart said forecast uncertainty persists (the committee is working off a March forecast) and that TABOR forecasting leaves potential refunds to taxpayers, but that those numbers can change.

The committee did not take a final vote in this session; members said they will proceed with additional hearings and followups on specific line items and orbitals.