Gov. Jared Polis Tuesday unveiled changes to his 2023-24 state budget proposal, less than a week before the start of the 2023 legislative session.

At the outset, the governor rejected suggestions of eliminating the 2 cent-a-gallon gas tax hike that is slated to go into effect on July 1. His administration, backed by his allies in the legislature, suspended that tax hike last year in response to soaring inflation.   

Polis said the budget reflects the mandate he and the General Assembly Democrats received from voters in the November election.

“We ran on a lot of these key issues,” he said, including reducing housing costs and pursuing climate goals.

The biggest budget changes include setting aside another $200 million from the general fund to boost an already significant amount – $700 million – to address escalating property taxes in both 2023 and 2024.

Polis told reporters at the governor’s mansion Tuesday that the December revenue forecast showed residential assessed values will increase 26.5% in the upcoming tax cycle, which will lead to large property tax increases for both homeowners and commercial building owners.

Polis said the money will be doled out through exemptions in valuations. Property taxes could be exempted for the first $15,000 in valuation, the governor explained. 

The second part of Polis’ property tax relief focuses on legislation on more longer-term tax relief for commercial property taxes, as well as a mechanism to protect homeowners from being priced out of their homes. He did not elaborate on what the proposed policy would look like.

Polis’ Jan. 3 budget amendments head to the Joint Budget Committee, amending his Nov. 1 budget submission.

The governor has the ability to amend the state budget submission once the December revenue forecast is released. The budget amendments are also tied to Polis’ victory for a second term in the November elections. After an election, the incoming governor is allowed to submit changes to the upcoming year’s state budget. 

The budget changes also include $120 million in clean energy tax credits to help the state move faster toward its 100% renewable energy goal, which has been set for 2040; invest $70 million to help with the workforce shortage; and, spend $25 million to expand afterschool programming – especially in science, technology, engineering and math – to address declining math scores.

The also include $10 million to reduce health insurance premiums; $10.5 million to increase child care capacity; $55 million for water; $4.5 million on transportation tied to Senate Bill 21-260; and, $5 million to incentivize businesses that would bring jobs in computer chip manufacturing, tied to the federal CHIPS Act. 

The governor also wants to devote $15 million for a package tied to affordable housing.