The legislature’s Joint Budget Committee is working through a list Wednesday of about 150 suggestions to cut as much as $1.5 billion in general fund dollars out of next year’s budget.

The largest on the list prepared by JBC staff is $198 million in cuts to the funding for the annual senior and disabled veterans homestead exemption.

Funding for the homestead exemption has to come out of general fund dollars in the 2026-27 budget because the state does not have a Taxpayer’s Bill of Rights surplus that would normally cover that cost.

The other side of the issue is Gov. Jared Polis’ support for a proposal to allow Pinnacol Assurance to privatize, with the hopes that half of the funds Pinnacol would pay the state as a result — about $400 million — would cover the homestead exemption.

That bill is expected to be introduced any day now by House Speaker Julie McCluskie, D-Dillon.

The JBC list shows $516 million in general fund cuts. In addition to Pinnacol, $35 million in general fund support is proposed to get cut from the state’s pre-K program.

The JBC staff note said the cut would eliminate 15-hour care to children in Universal Preschool School. But the staffers are not ready to make that recommendation yet, given that they don’t think that amount can be fully realized in the 2026-27 budget.

The proposed list suggests a cut of more than $293,000 for the governor’s office for expenses related to travel, advertising and marketing, parking fees and “other seemingly non-essential items.” The cut would take the office back to 2024-25 budget levels.

For Medicaid — and the Department of Health Care Policy and Financing, which manages the state’s Medicaid spending — there are 19 suggested cuts, totaling just under $50 million in general funds. It includes a 5% across the board cut for “state only programs,” although it’s not clear which programs this applies to.

Another 5% across-the-board cut is proposed for the state agency’s office of community living, which provides long-term services and supports by people with disabilities and aging adults.

About $30 million in general fund and more than $108 million total funds would be saved with a cut to HCPF’s substance use disorder services area. The JBC analysis said this would repeal residential and inpatient substance use treatment from House Bill 18-1136.

Within the Department of Personnel and Administration, the proposal suggests delaying the replacement of 545 state vehicles, as well as eliminating the Colorado Equity Office, funding for state employee tuition reimbursement and funding for an ADA coordinator.

A 10% cut to Colorado Parks and Wildlife, around $218,000, would come out of funding for the state wolf reintroduction program.

Some of the cuts will require legislation, such as the homestead exemption.

The 2026-27 state budget has a deadline of March 30 for introduction in the House, although multiple sources have said the Long Bill is unlikely to be ready by then.