The Governor's Office of State Planning and Budgeting released Colorado's September economic and revenue forecast Friday, projecting steady but decelerating growth amid international trade uncertainty and geopolitical conflict.

The office projects economic growth in 2026 will hold at roughly the same pace as 2025 at 2.1 percent, supported by stronger-than-expected consumer spending on durable goods and solid business investment. Colorado housing price growth is slower than the national average, and housing permitting began growing in 2025 despite a national decline — a trend OSPB expects to continue in 2026.

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"Coloradans are facing higher costs due to Trump's reckless trade policies and the war with Iran. With gas and grocery prices still climbing, Coloradans are having to choose between filling the tank and filling the fridge. Despite this, Colorado's economy is stable. We will keep fighting to lower costs for Colorado families," said Governor Jared Polis.

Preliminary estimates from the Office of the State Controller indicate revenue will fall $175.9 million below the TABOR cap in Fiscal Year 2025-26. TABOR refunds are estimated at $244.4 million in Fiscal Year 2026-27, driven by economic growth, consumer spending, and corporate profits. Projected TABOR surpluses of $198.9 million in Fiscal Year 2027-28 and $334.2 million in Fiscal Year 2028-29 are also anticipated. OSPB expects a balanced budget in Fiscal Year 2026-27, with $65.2 million in excess of the 13 percent General Fund statutory reserve.