After Prop 116 passes, Colorado leaders don’t expect lower income tax to drastically affect state’s budget

COLORADO SPRINGS, Colo. (KRDO) -- Coloradans overwhelmingly approved a ballot measure that would reduce their state income tax, but it could cost Colorado's general fund tens of millions of dollars.

Proposition 116 cuts Colorado income tax from 4.63 percent to 4.55 percent. It gives people who make $50,000 a year about a $40 break. Reports expect the decrease to result in a $150 million loss for the Colorado budget.

On Monday, Governor Jared Polis talked about the possible impact of Proposition 116 during a press briefing where he discussed the State's 2021-2022 Budget.

“When I testify before the joint budget committee on the 12th it will include a budget letter that accounts for any changes from the election,” Polis says.

However, he also says the impact will not be significant.

“I would point out though that we don’t see any of the initiatives as materially affecting the budget," Polis said.

State Senator-Elect Larry Liston agrees.

"It sounds like a lot of money and it is a lot of money but in a $30 billion budget, it's not very large," said Liston, who says he believes the loss will eventually be made up. “I think what they give up on the tax increase for the income tax increase will be more than made up in volume with new jobs that are increased."

But Liston still expects some belt-tightening to happen.

“Every little bit counts," Liston said. "There’s going to be a lot of programs that people want that sound good but at the end of the day there’s just not enough money.”