It's that time of year, recovering from the holidays, New Year's resolutions, and for state lawmakers, back to work. With lots already on their to-do lists for the new legislative session. And right at the top... The budget will be absolutely first and foremost the primary conversation again this year. We are going to have to figure out how to meet the growing need of Medicaid users while the cost of health care is increasing. But even with all the headaches around spending, there will be lots of other issues fighting for lawmakers' attention, like the state's AI anti-discrimination law. Everyone's saying that this is going to stifle innovation, but I think there's the opportunity here that people are missing. And I think that if we build better AI, people will buy and use the better AI. Plus perennial concerns like housing, the environment, and... I'm working on a bill to put some guardrails around these license plate readers and around the data that they collect. When we talk about affordability for Coloradans, property insurance is now becoming a bigger concern for many. Democrats continue to hold a wide majority in both legislative chambers, but don't expect them to present a unified front. I think the Democrats are going to have a lot of conflicts within their own caucus going forward. To top it off, it's an election year, which always adds to the annual fireworks at the Capitol. Quite a few state lawmakers have their eyes on due jobs. Let's build a treasurer's office where fiscal responsibility means more than just balancing books. I've got the guts, the determination, the entrepreneurial spirit, and the vision to create a future and a better future for Colorado. We need to protect our democracy and the accessibility of our polls and our elections. We're also on the cusp of a major shakeup for the state, with Democratic Governor Jared Polis on his way out and someone else on their way in. I think all of us are speculating not only how Polis wants to spend his last legislative session. I think we're also curious on what these gubernatorial candidates want to support as well. From the politics to the policy and the pressures shaping both. Let's get into it and get ourselves ready for another four months under the gold dome. This is Purplish from CPR News and the Colorado Capital News Alliance, a show about Colorado politics and policy. I'm Benta Birkland, and to help me usher in another legislative session is Jesse Paul of the Colorado Sun and Lucas Brady-Woods from KUNC. Happy New Year and happy almost start of session. Hello, hello. Here we go again. The 2026 session kicks off January 14th, and I think it's safe to say it already looks like it's shaping up to be pretty action-packed. Yep, from everything we're hearing, it has the potential to be a doozy. Lots of big policy issues, but also lots of complicated interpersonal drama that lawmakers will have to navigate this session. And that's where I want to start our conversation with the politics. because, as we all know, the politics and how lawmakers work together or don't can very much shape the policy that ultimately passes. Lawmakers didn't get as long of a break from each other as they normally do, and that's because they were at the Capitol over the summer for a special legislative session. One big thing, both the Senate and House Republicans will start the session with new leaders. Yeah, and in the Senate, that's because Paul Lundin resigned in June to take a job leading a national conservative nonprofit. Cleve Simpson has stepped in as the minority leader in the chamber. Not a lot of turmoil there. He was right behind Lundin in the leadership chain. It was expected. And Simpson has a very close relationship with the Senate president. They're really good friends. Right. That was a pretty normal kind of transition, as you mentioned. But what happened with House Republicans wasn't normal. In that chamber, Minority Leader Rose Puglisi surprised everyone by resigning abruptly in September. Yeah, I mean, it was a very dramatic falling out on the chamber floor, and that was during that special session between Puglisi and Democratic leaders. And it was like nothing I'd really seen before from legislative leaders and that it happened in the chamber at the podium. It's a long, convoluted story, but basically Puglisi's public falling out with the Democratic leaders in the House was over how she handled inappropriate behavior by some of her caucus members. and whether she misled Democrats about it. This was the Signal group chat and a photo taken of a Democratic lawmaker without her consent. We've already spilled a lot of ink telling the story, but the bottom line is Puglisi said she had enough of the vitriol in the Capitol and left the legislature. The new House minority leader is Jarvis Caldwell. He's only in his second year as a lawmaker, and even though he's new, he is familiar with the Capitol and the caucus. He was actually a Capitol staffer just a few years ago, the spokesman for the House Republicans, in fact. So we've known him for a bit, but in a much different context. Caldwell will have his work cut out for him, trying to build this relationship with the Democratic leaders. House Majority Leader Monica Duran, before this falling out, was very close with Puglisi, and they managed the floor well together. So after all that ugliness, there'll be some bridges to mend, but his party is still deeply in the minority. And Caldwell told me that trust is a two-way street. It's a give-and-take relationship. I'm going to have to advocate on behalf of my caucus, and she'll have to advocate on behalf of hers. But the important thing is that we're able to have that relationship so we can have those conversations with each other. We haven't seen his leadership style yet, so it's kind of hard to say at this point how trust will get rebuilt between the two parties. But Caldwell also has to build some trust within his own Republican caucus. He's in charge of one of the most rowdiest, disjointed, and disruptive, really, bunch at the Capitol. The House GOP caucus has very broad ideological differences, and it's been marred by infighting in the past. Caldwell said they're definitely looking to start the session as much more unified opposition to Democrats. Many have tried. No one has succeeded. I actually think the real drama of this session is going to be between Democrats. Yeah, I mean, I think that could be right because, you know, Jesse, tell me if you disagree with this, But I feel like it fair to say up until now Democrats have done a pretty good job of managing a very large and diverse caucus at the statehouse They done a pretty good job of managing it I think behind the scenes But now it starting to spill out into the public There this big ugly ongoing public fight between more moderate Democrats and more liberal Democrats at the Capitol. And now it's even reached the state's ethics commission. So, Jesse, you and other reporters at The Sun have covered it very closely. Give us the 30-second summary here of why divisions among Democrats have become so public. It's going to be tough to do that in 30 seconds because there's a lot of ins and outs here. But basically, a bunch of more moderate Democrats at the Capitol spent a weekend in Vail at a retreat with a lot of business lobbyists, and it's not clear who put the money up for it. And this was over the summer, right? Yeah, this all happened over the interim and the group Common Cause, a liberal, good governance, non-profit, found an ethics complaint over it. And a lot of progressive Democratic lawmakers are saying, right on. So Democrats are kind of divided into two sides right now. There's those who are supporting the ethics complaint or not, and the two sides kind of hate each other because the ones who support the ethics complaint are separate from the ones who are being complained against, if that makes sense. I don't really know how they're all going to work together, given all this drama. Yeah, some Democrats I spoke with really hope they'll be able to put some of the animosity aside and find common ground when it comes to policy. But it really could have an impact on their ability to govern effectively as the majority party. I heard something similar when I talked to Representative Brianna to tell him about it. There's just a lot of members that a bit distrusting of one another. And I think that that's really, this is a terrible time to have to deal with this eroding trust, because this is one of the most critical sessions that we're going to have in our careers. And we have to be together to fix these problems and to address these problems that we have. I talked with Representative Jennifer Bacon about this recently. She's also the House assistant majority leader, and she sees these tensions as part of something bigger for Democrats. I think the whole party across the country is questioning, right, what it is that we are going to be about. So we are due for an evaluation. I hope that we can figure out, again, together what our core values are in a recognition of our core base and constituencies. Sadly, one of the things that did unify lawmakers in the last few months was the death of Senator Faith Winter. She was killed in a car crash the day before Thanksgiving. And after her death, you heard a lot of sorrow from all sorts of people, lawmakers, lobbyists. I mean, just so many people worked with her. And I think it will hit everyone even more when everyone is back at the Capitol in that building and then faith is not there. Yeah, she was a big part of the legislature for years. And a lot of lawmakers and staff and others were very close personal friends with her, as I've come to understand even more since her death. And I can't imagine it won't put a cloud over things. Senator Ritter was also kind of a legislative powerhouse, so not having her around while they're dealing with all these big issues will definitely change the trajectory of policymaking. I think that's right. She was at the forefront of so many huge policy issues. I've covered a lot of the workplace stuff she championed, but environmental policy, transportation, just a huge, huge force that will be missed at the Capitol. This is tough to talk about, and I know we all feel for her kids and family, but Winter's death also hits particularly hard because of the way it happened. She was legally drunk when authorities say she caused the crash that killed her. The entire situation is really, really awful. Winter had publicly struggled with alcohol before the crash, and she's not the only one. You know, substance use at the Capitol is a thing, and it's starting to get more attention. We've been looking backward at the events that are likely to shape the start of this session. But a lot of lawmakers are already looking past it to the fall election. And what an election it's going to be. All four constitutional offices are open. That means governor, attorney general, secretary of state and treasurer. And you've got state lawmakers trying for almost all those positions. Democratic Representative Brianna Titone and state Senator Jeff Bridges, They're both running for state treasurer. Then you have Democratic Senator Jesse Danielson trying for secretary of state and a few Republican lawmakers trying for governor, Senator Barbara Kirkmeyer and Representative Scott Bottoms. And those are just state races. We also have a couple of Democrats slugging it out in the race for the eighth congressional district. Democratic state representatives Manny Routenel and Shannon Byrd. Former state representative Shannon Byrd, I think, right? She's just leaving the legislature. And that means she's also leaving the powerful Joint Budget Committee, too. It's unusual for a member to resign from the legislature while campaigning. But we've seen over the years a lot of lawmakers running for higher office. They're still at the Capitol. They may scale back a bit more on what they're working on at the statehouse. And their votes and floor speeches are even more political or tailored for the next job they're hoping to get. On top of that, we've got a number of top elected officials who are term limited, meaning this is their last session and they'll be trying to cement their legacies. That includes the House Speaker, Julie McCluskey. Benta, what do you think that could mean for this session? It is the last chance for the Speaker to cement a legacy and to try to pass any policy she hasn't been able to get done yet. I think for some members, a final session can be more freeing. For others, they can be a little bit more checked out, looking to the next thing. But other people can be very, very dialed in and focused as well, knowing that this really is their last chance to do some of the policies they're passionate about. The biggest case of senioritis at the Capitol this year, though, has to go to Governor Jared Polis. Having him on his way out after eight years leading the state is enough of a game changer that, Drumroll please, we'll have an entire episode on it soon. I know you all can't wait. Very exciting. But without spoiling everything we have planned for that, and maybe because we don't have anything written for that yet. Are you sure Jesse you don have like a little notepad and you been jotting down all your Polis one Of course he does Holispalooza I think it safe to say that Polis lame duck status will shape the legislative session And given his sometimes tense relationship with his own party-overt policy, I'll be curious to see if and how lawmakers actually push back against him during the final hurrah. Even though we expect plenty of personal friction this session, lawmakers also need to deal with a lot of big policy issues. That's why they're at the Capitol. First and foremost, the budget. And that's what we'll get to next. This is Purplish from CPR News and the Colorado Capital News Alliance. You love podcasts to keep up with the news. Now there's an easy way to find out what's happening in Colorado every day. The Colorado Today podcast is new from the same trusted source that brings you Purplish. You'll get the top stories, on-the-ground reporting, and moments of curiosity. Follow Colorado Today for the statewide news you need each weekday on Apple, Spotify, or wherever you get your podcasts. This is Purplish from CPR News and the Colorado Capital News Alliance. Even though there will be hundreds of bills debated at the Capitol this session, it would take a lot for any of them to eclipse the budget. And that's because for the second year in a row, lawmakers face roughly a billion-dollar budget shortfall. That's the gap between what it will cost to continue state programs and services at their current levels and how much money the state actually has available to spend. That's going to mean some really tough decisions for lawmakers again. Jesse, you've been covering the budget closely and what's going on with everything. Give us a breakdown of why Colorado is back in this situation again, this huge shortfall. I know people's eyes tend to glaze over when it comes to state budget issues, but so much state policy rides on a balanced budget. It's a constitutional requirement in Colorado, a true spicy meatball that you all cannot avoid. Okay. I'm going to spare you all the whole Tabor talk, though, and just say that the whole problem really boils down to one word, Medicaid. Medicaid costs are ballooning in Colorado and the state just cannot keep up. Okay, but what exactly has caused the cost of providing Medicaid to increase so much? I'm glad you asked, Lucas. There are a few factors here at play. Number one, the state legislature has expanded coverage for people on Medicaid in recent years. Number two, people who are on Medicaid are getting more care, a trend that's been happening since the end of COVID-19 lockdowns. And number three, the cost of medical care is just generally increasing. It's growing faster than inflation. So more generous coverage, more use of that coverage, and the things that that coverage covers are getting more expensive. It's kind of a perfect storm. Lawmakers dealt with a similar budget problem last year, in large part by patching it over with one-time money and doing some clever accounting with state finances. But they just can't keep doing that. Right, those were kind of one-time budget maneuvers. They haven't totally exhausted that approach, but there is definitely less change left in the couch cushions, so to speak. So they'll have to find places to make real cuts this year, and that's going to be tough. I know the governor has been pushing lawmakers to reduce some Medicaid services to save money. Of course, people who use those services are worried and upset. One group we've been hearing a lot from lately are parents of children with autism and autism care providers. They're worried they could see access to key therapies pared back, which is already happening in other states. Those folks held a rally at the Capitol of November to really push back against the governor's budget plans. Whether intentional or not, these decisions send a very loud message that our children's development, our children's futures are somehow negotiable. That our kids matter less. Let me be clear. Colorado's fiscal challenges are not an excuse to balance the budget on the backs of children with disabilities. Peace. The governor's office has defended its budget proposal, saying basically, given how big of a drag Medicaid is on the budget, it's going to have to be part of what's getting cut. But this is tough, right? Nobody wants to take anyone's medical care away. Right. I'm sure that's not the only place they're looking, though. What are the other options that are on the table? Well, the governor is pushing this idea to privatize the state's workers' compensation insurer of last resort. So this is Pinnacle Assurance. Pinnacle is quasi-governmental, and he says selling it off will generate about $400 million for the state budget. The governor actually proposed this last year, but lawmakers rejected the idea. Overall, they say Pinnacle is working well for employers and workers, and there are big fears among Democrats about privatizing workers' compensation to this extent. But will that actually make a difference with the budget? Like, could it actually save lawmakers from having to do deep cuts to things like K-12 education or transportation? Well, Polis is saying $400 million and that if you don't get it from Pinnacle, you're going to have to get it from somewhere else. Democrats have objected to that kind of framing. They said, look, if we're going to privatize Pinnacle, it has to be a policy decision that we do irrespective of the budget because it would just be a one time savings. It's not going to solve everything. I was at a budget committee hearing about this. I don't think there's a warm reception to that idea again this session. So I'd be very surprised if privatizing Pinnacle comes to fruition. I don't think lawmakers want to privatize Pinnacle, but I kind of get the sense that they're starting to see that there might not be another option. Just remind us one more time, Jesse, why the legislature can't just raise revenue to cover this added expense. All right, everybody say it with me now. The Taxpayers' Bill of Rights. Our state constitution says only voters can raise taxes or lift the state spending cap, and voters don't really like doing either of those things. They've rejected the idea in recent years. Okay, we really failed at saying that together, but just in case listeners thought they might someday get a break from hearing us talk about this, fair warning, the ongoing outlook for the budget isn't great. State economists think there's a good chance we could be stuck in a bad budget cycle for some time. One even recently described it as, quote, a little bit of a groundhog day situation. Great movie, maybe not the best way to run a state. Bad budget years definitely put some real limitations on what lawmakers can do with the rest of their session Any bills that cost money are really going to struggle this year Yeah it basically like lawmakers are making a trip to Costco with zero dollars to spend Maybe they can find some change in their pockets to buy a hot dog, but that's about it. Well, with that said, what are you guys hearing will be some of the policy priorities? First, I'm pretty hungry and I really love a Costco hot dog. Who doesn't? Right. Anyway, so lawmakers are still planning to try to deal with some of Colorado's most pressing issues, housing being one of them, Democrats are going to try again to let certain local entities like schools and universities build housing on land they own, whether or not it's zoned residential. There was a bill like that last session, but it also included churches. Right, but the bill this time, they've taken churches out of it. There's also another bill to make it easier for homeowners in higher density areas of the state to subdivide and sell off their A lot of these Democratic housing bills have caused major fights with local governments over the past few years. Are we going to see more of that, Lucas? Oh, yeah. The Colorado Municipal League, which represents towns and cities, is already opposed to both of those bills. It sees them as another example of state overreach. increasing housing density has been a top priority for governor polis yeah and democrats have passed a number of bills that he's supported in recent years the state's facing some lawsuits from local communities over it but this will be his last session to really see what he can get across the finish line adjacent to all of these housing policies, something I'm looking at is the state's increasingly high cost for homeowners insurance. We're a state that has a lot of hail and wildfires and some of the highest insurance rates in the country. Again, an issue governor and other Democratic leaders want to focus on. We can also expect lawmakers to try once again to tackle the state's first-in-the-nation law regulating artificial intelligence. I don't think we're first-in-the-nation anymore because other states have had their laws go into effect. Lawmakers cannot figure this one out. It has been such a headache for all of us to cover. Right now, it's set to go into effect by June, but still, there's this really complex and contentious policy with a very hard deadline, and lawmakers are trying to tweak it to make it work. And as a refresher, lawmakers passed this back in 2024, and the goal is to prevent discrimination in AI systems that businesses and governments use to make key decisions, things like hiring, education, banking. Lawmakers just can't agree on how to actually implement this. Yeah, and the law has really ruffled the feathers of big tech and some of the companies and institutions that use these AI systems. Polis has had reservations about the policy as well. Complicating all of this is federal implications. President Donald Trump recently signed an executive order essentially banning states from creating their own robust AI regulations. What the president is basically saying is that he wants AI to be regulated on the federal level. But newsflash, Congress is not getting that done. And also to add to that, Trump has said explicitly he doesn't want to stifle any innovation in the AI sector. So his version of a federal regulation will be vastly different from the type of regulations Colorado is proposing. Whatever Trump's end goal is, the order specifically singled out Colorado's law and said the U.S. government would seek to restrict federal funding to the states that don't comply. This is something Colorado lawmakers are going to have to deal with one way or another this session. I don't think lawmakers in either party want to lose billions of dollars in federal money over this. But some lawmakers think it's really critically important for Colorado to have regulations in place, especially when there really aren't any at the federal level, as you mentioned. Jesse, what legislation has caught your eye ahead of the session? We're expecting a bill that would require law enforcement to get a warrant before using the FLOC database as part of some investigations. FLOC is that major surveillance video network for those not initiated, like Lucas. Sounds like Big Brother to me or something. Okay, big only child energy there. This is something that's been in the headlines a lot lately. Yeah, especially if you live in Denver, Aurora. People have been up in arms about how Flock is used for criminal investigations, for immigration investigations. We've done some reporting on it. There's been instances where people have been falsely accused. It's a big ticket item. Right. Sounds like Big Brother again. Anyway, other than that, I'm hearing that lawmakers are going to take another shot at repealing the Labor Peace Act this year. Polis vetoed lawmakers' attempt to do that last year. So how likely is that to succeed with Polis still in office, Lucas? How likely is it that lawmakers designate my birthday Colorado's Costco hot dog day? Not very likely. Got it. Okay, so I also think there's some energy environment issues that will be key this session as well. I'm expecting some stuff around the Public Utilities Commission, PUC, and potential tweaks to Colorado's greenhouse gas emissions reductions goals since we are pretty behind in meeting those. We've covered a lot. Any final thoughts? Oof, just talking about all this is making me tired already. Well, our producers say we can't end this episode with something like, we'll see what happens. So my final thought is this. In the words of the great Paul Rudd, we'll see you there or we'll see you on another time. That's extremely confusing. That's it for this episode. Purplish is a production of member-supported Colorado Public Radio and the Colorado Capital News Alliance. The CCNA is a collaboration between KUNC News, Colorado Public Radio, Rocky Mountain PBS, and the Colorado Sun, with support from news outlets throughout the state. Funding for the Alliance is provided in part by the Corporation for Public Broadcasting. I'm Lucas Brady-Woods. I'm Jesse Paul. And I'm Benta Burkland. Our producer is Stephanie Wolfe. Megan Verlee is our executive producer. Sound design and engineering by Shane Rumsey. Our theme music is by Brad Turner. Additional reporting for this episode from Taylor Dolvin of the Colorado Sun and CPR's John Daly. Purplish will be back in your feed in two weeks. Subscribe now so you don't miss an episode. This is Purplish from CPR News and the Colorado Capital News Alliance.
