By Kathy White

Gov. Jared Polis’ final State of the State address was a clear victory lap. After eight years as governor, he used the moment to highlight accomplishments, reflect on progress and remind Coloradans what his administration has delivered. That is understandable. There is a real record to point to, and much of it deserves recognition.

What the speech did not do was squarely confront the reality Colorado faces right now.

The governor celebrated major legislative successes, including the creation of the Family Affordability Tax Credit, a policy that helped dramatically reduce child poverty. What he did not mention is the credit is effectively turned off for tax year 2026. Because Colorado’s tax code automatically conforms to federal law, the passage of H.R. 1 in Congress created an $850 million hole in our state budget and put the future of that credit, and others like it, at risk. Unless lawmakers act, families will receive less help in the coming years, or none at all.

That omission matters, especially when we are talking about policies that were never meant to be temporary victories.

Gov. Polis also spoke about “the Colorado way,” describing it as a shared commitment to a compassionate and kind Colorado for everyone. That idea resonates because Coloradans have seen what is possible when values are matched with action.

What the speech left largely unaddressed is how exposed those gains become when our fiscal system is designed to absorb federal dysfunction without question.

Colorado is now dealing with the fallout from decisions made in Washington. Because our tax code is tied to federal law, instability at the federal level quickly becomes instability at the state level. The result is a budget crisis that forces hard choices and painful trade-offs Coloradans did not ask for and should not have to accept as inevitable.

To be fair, the governor acknowledged this will be a difficult year. A massive deficit and rising hostility from the federal government toward states and public investments make this a challenging moment. A less ambitious tone is understandable.

But difficult does not mean passive.

Gov. Polis also offered a reminder that should guide lawmakers this session: “Politics is simple. You say you’re going to do it, then you do it.” Colorado lawmakers have said they support fairness, opportunity and shared responsibility. Now they have to decide whether those are guiding principles or just applause lines.

This session, lawmakers can vote to close corporate tax loopholes that quietly drain revenue while delivering little benefit to the broader economy. They can rein in inefficient tax giveaways and raise the revenue needed to stabilize the budget and protect the public investments that make Colorado work. Or they can step back and allow federal policy choices to dictate outcomes here at home.

It does not have to be this way.

Colorado legislators are not powerless observers. They have the authority to act, and choosing not to use that authority is still a choice. Passivity simply shifts the cost onto families, communities and future budgets.

This is why conversations about decoupling Colorado’s tax code from federal law are no longer theoretical. Decoupling is about stability and self-determination. It is about making sure Colorado can protect its priorities instead of inheriting federal ones that undermine our values.

Looking ahead, Coloradans are already pushing for longer-term fixes, including efforts to pursue a graduated income tax on the ballot this November. As Gov. Polis himself said, we cannot fix everything overnight, but it is about time we started. That same urgency should apply right now.

Dreaming is easy. Daring requires follow-through. Decoupling, closing loopholes and raising revenue are how Colorado turns values into policy.

That is the work. And the moment to do it is now.

Kathy White is executive director of the Colorado Fiscal Institute.