Special Update – Governor Polis’s 2025 State of the State

It’s Thursday, January 9, 2025. The 2025 Colorado General Assembly started yesterday, meaning there are only 119 days left (or technically, a little over 118, but who’s counting?).

As highlighted by The Sum & Substance and Colorado Newsline, it was a very busy first day of session.

The first day of the 2025 legislative session at the State Capitol in Denver, as is customary, was largely ceremonial. Uniformed military personnel presented the U.S. and Colorado flags, Indigenous leaders offered a land acknowledgment for the Capitol building, and party leaders outlined their key priorities for the session. The first bills of the year were introduced, and floor work wrapped up by midday.

However, this year’s opening day brought a bit more excitement than usual. A total of 126 bills were introduced on the first day, with many set to have a direct impact on the business community. 

• Colorado legislative Democrats quickly introduced two major pro-labor bills alongside several cost-of-living measures, which are expected to spark significant debate due to their cost-reduction strategies.
• Additionally, both parties revived previously defeated bills, including proposals to limit grocery-store liquor sales, study a single-payer healthcare system, and promote nuclear energy.
• A pair of Democrats also introduced a bill requiring state regulators to consider workforce impacts when implementing new air-quality regulations.

And there is plenty more to come, including proposals on construction-defects reform, federal drug-pricing limitations, regulatory reform, and artificial-intelligence regulation, all of which will also be major topics in the session.

But today was all about the Governor.

Earlier, Colorado Governor Jared Polis addressed the General Assembly for the annual State of the State speech. What do Star Wars, Lord of the Rings, Taylor Swift, and Wicked all have in common? They were all pop culture references made by Colorado Governor Jared Polis during his address today. Known for incorporating popular culture into his speeches, Polis continued that tradition this year, weaving these references into his remarks as he addressed a variety of issues facing the state.  

In his remarks, Polis covered a variety of challenges Colorado faced over the past year and shared his vision for the year ahead, with a focus on housing affordability, education, and healthcare. While both Democrats and Republicans share the goal of improving affordability, their differing approaches to achieving it are expected to be a major point of contention as the session unfolds under the Gold Dome.

Here are the highlights from the 55-minute State of the State speech:

• Jimmy Carter, The Broncos, Freedom, & Resilience: The Governor’s speech began with a moment of silence to honor former President Jimmy Carter, who was remembered on the national day of mourning. Reflecting on Colorado’s unique spirit and breathtaking landscape, the Governor celebrated the state’s resilience and its embodiment of freedom, opportunity, innovation, and integrity. He highlighted how Colorado’s high-altitude shapes both its thriving agricultural industry and its world-class athletes, while also contributing to the success of the aerospace sector and national military readiness. The Governor mentioned the National Women’s Soccer Team coming to Colorado and the Denver Broncos taking on the Buffalo Bills in the NFL Wild Card game this weekend. Reflecting on collaboration, he mentioned sending resources to California during wildfire crises and learning from Colorado’s natural challenges to drive progress.
• Economic Success & Leadership: Acknowledging Colorado’s leadership in technology, the Governor mentioned the state’s role as a hub for quantum technology and its future hosting of the Sundance Film Festival. He emphasized the state’s aspirations to improve the lives of its residents by enhancing living standards, increasing job opportunities, and providing affordable housing, all while protecting the environment and ensuring quality education. He also discussed government efficiency improvements, such as digitizing services to make them more accessible and streamlined. The Governor also talked about keeping the US Space Command in Colorado “where it rightfully belongs.”
• A Mixed Message On Trump: On national politics, the Governor reaffirmed Colorado’s independent values, committing to work with anyone who serves the state’s best interests, while opposing actions that could harm it. He voiced his opposition to tariffs that could raise costs for Coloradans, and applauded efforts to open markets for local products, such as Colorado-grown potatoes. Further reinforcing Colorado’s dedication to individual freedoms, the Governor stressed the state’s stance against any infringement on personal rights, including the protection of marriage equality and reproductive healthcare choices. Republicans liked Polis’s comments on the illegal flow of guns and drugs, secure the border and stop human trafficking. “I hope that President Trump and Congress work together quickly to secure the border, stop human trafficking, and stop the illegal flow of guns and drugs, and we welcome more federal help to detain and deport dangerous criminals.” But Polis also warned the state will not support efforts to deport American citizens, target those on pending legal status, or break up families, he said.
• Pushing Homeownership Opportunities: On housing, he shared progress made in addressing the housing crisis through initiatives that streamline building processes and increase housing access – including possible agreement around construction defect reform. Polis called for meaningful conversation about reform, in a way that protects homeowners but makes it less expensive for builders to deliver housing. The main bill on this issue is being sponsored by Rep. Shannon Bird and Senate President James Coleman. Bird carried the construction defects reform bill in 2024; this year’s bill is expected to be quite different. Addressing rising homeowners’ insurance rates, the Governor called for reforms to make insurance more affordable.
• Energy & Infrastructure: In the realm of transportation, Polis emphasized ongoing efforts to expand rail services and improve public transit, aiming to reduce pollution, alleviate traffic congestion, and lower commuting costs. He also reaffirmed Colorado’s commitment to a clean energy future, balancing climate action with affordable energy for residents. Polis reiterated his call for reforming the Regional Transportation District, which has faced criticism over its governance and declining ridership in the metro Denver area. Additionally, he celebrated Colorado’s thriving outdoor recreation sector, highlighting its economic contribution and the ongoing efforts to preserve the state’s cherished lands and wildlife. While focusing on high-density transit solutions, the Governor’s speech lacked mention of crucial infrastructure issues like roads, bridges, and highways—a point likely to frustrate Republicans and rural Coloradans.
• On Business – Collaboration Is The Goal: The Governor urged collaboration between the government and the private sector to support business growth, fair wages, and economic success. The Governor said that any alteration to the Labor Peace Act must come through negotiations with business and agreed upon resolution. The Governor is making a request for unions and business to work together on this, as well as on overregulation that has sunk Colorado’s business competitiveness rankings over the last two years. Last year, Governor Polis vetoed a wage theft bill sponsored by House Majority Leader Monica Duran. This year, Duran is reintroducing the bill in a slightly modified form, and Polis has indicated that he is working closely with her and Rep. Meg Froelich on the measure. Regarding reform of the Labor Peace Act, Polis urged lawmakers, businesses, and unions to steer clear of the contentious battles of the past.
• The State Budget: With a $700 million budget shortfall, the state is facing a spending freeze. House Speaker Julie McCluskie told reporters on Tuesday that when asked about any potential legislation for new state funding, her response has been “zero.” During his speech, Governor Polis highlighted his budget proposal, which includes plans to privatize Pinnacol, Colorado’s workers’ compensation insurance provider of last resort, along with investments in public safety, safeguarding the social safety net, and fully funding schools.
• Public Safety & Crime: Public safety was a central theme, with the Governor outlining efforts to reduce crime, improve firearm laws, and tackle youth crime. He presented a budget proposal that includes expanding resources for youth programs and strengthening the state’s emergency dispatch system. He also emphasized the importance of law enforcement funding, highlighting Proposition 130’s $350 million investment in officer retention, training, and support for families of fallen officers, including Golden Officer Evan Dunn.
• Listening To Voters & Their Wallets: The Governor reaffirmed Colorado’s commitment to implementing voter-approved measures, such as reforms in the veterinary workforce and constitutional protections for fundamental rights, including marriage equality and reproductive healthcare. He also took a firm stance on immigration, emphasizing support for legal pathways for Dreamers and immigrants who contribute to the economy, while opposing efforts to deport American citizens or break up families. Turning to the cost of living, the Governor focused on reducing housing, transportation, and healthcare costs, highlighting initiatives like capping insulin prices, reducing insurance rates, and advocating for prescription drug importation from Canada.
• Education Remains A Priority Despite The Budget: The Governor spotlighted recent education reforms, such as universal preschool and a new school finance formula, emphasizing the need for adequate resources for students in need. In higher education, the Governor shared efforts to provide free higher education for many students and discussed his leadership as Chair of the National Governors Association, working to prepare students for a future economy. Last year, lawmakers revamped Colorado’s 30-year-old school finance formula, but Governor Polis argued that the state remains an “outlier” when it comes to school funding. He has called for reforms in how student enrollment is counted to ensure that funding is allocated based on actual student attendance rather than “empty chairs.” Higher education could face a significant budget battle, as it is often one of the first areas to experience cuts during challenging budget years. In November, Governor Jared Polis proposed a budget that highlighted a potential decrease in state revenue, while the financial obligations for programs like Medicaid have increased. Although recent revenue projections have improved, the state still faces a budget gap. Polis’ budget includes cuts, such as changes to how funding is allocated to school districts based on student enrollment and scaling back a new funding formula passed last year. However, the budget proposes a modest $12.1 million increase for higher education. The state’s Joint Budget Committee will play a key role in finalizing the budget in the coming months.
• And In The End: Concluding, the Governor spoke about Colorado’s 150th anniversary in the coming year, framing the state as a beacon of freedom, opportunity, and prosperity. The Governor made a point to highlight how state leaders will not allow leadership in the White House or in Washington DC to keep them from making decisions to benefit people in Colorado.  “Here in this legislature and in this state, we can, and we will do better,” said Polis. He ended with a call to continue working together, building a strong, inclusive Colorado for the future.

For more on the State of State you can check out The Denver Post, Colorado Politics, CPR, Fox31, KOAA, 9News, and Colorado Newsline.

What comes next? Policy battles, potential bipartisan collaboration, and a tough budget debate.

With two years left in his second term, Governor Polis has successfully moved his land-use reforms through the Capitol, a key priority since his 2022 re-election. However, other important policy objectives remain on the table.

During his address Governor highlighted recent public safety efforts and stressed the need for continued work, including stronger penalties for firearm theft and strategies to curb youth crime. He also revisited the ongoing issue of the cost of living, advocating for further reforms to reduce hospital costs. In a significant move, he appears aligned with hospitals in the upcoming legislative fight between healthcare facilities and the pharmaceutical industry over a discounted drug program.

But perhaps the fiercest battle this year will revolve around state finances. The state budget faces a daunting budget shortfall of about $700 million this year, prompting concerns that essential services may face painful cuts. Polis has put forth two budget proposals to address the deficit, though his plans have received only lukewarm support from key lawmakers.

As the legislative session unfolds, the real test will be balancing competing priorities while navigating the state’s financial challenges.

Best,

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