Road-funding amendment divides Colorado over $539M general fund shift
A battle is brewing over funding for Colorado’s roads after a citizen initiative has been cleared to gather signatures to put it on the ballot for voters to decide.
Supporters of the proposed constitutional amendment that would change existing law on transportation funding and increase state revenue allotted for road transportation said it would end years of diversions of funds and dedicate vehicle-related taxes and fees to fixing Colorado’s roadways.
Opponents, meanwhile, argued it would force painful budget choices by pulling money from other state priorities.
The measure, Initiative No. 175 would take effect Jan. 1, 2027, assuming it submits sufficient signatures to make it to the ballot and voters approve it in November. It would require a list of transportation-related revenues be spent only on building and fixing roads and bridges, safety improvements, transportation planning and engineering, as well as Colorado State Patrol operations.
About $1.395 billion of the roughly $2.09 billion in revenues affected already comes from funds dedicated to highways under the Highway Users Tax Fund.
Vehicle sales and use taxes amounting to some $538.9 million would be statutorily dedicated to highway use. This amounts to about 3.1% of the state’s $17.4 billion discretionary General Fund. Those revenues are transportation-related, but are currently allocated by the legislature each year for any state purpose it chooses.
An April 14 letter from Keep Kids First Colorado — the group leading opposition to the initiative, 46 lawmakers and more than 43 organizations including education, hospital and environmental groups — stated that balancing the budget without major reductions to Medicaid, K-12 education and higher education would be nearly impossible if the initiative passes.
“Transportation works best when it is funded out of its own user fees,” Randal O’Toole, director of the Transportation Policy Center at the Independence Institute, said in a written response to The Denver Gazette. The Institute is a Denver-based free-market think tank.
Matthew Groves, CEO of the Colorado Automobile Dealers Association, said the funds have long been diverted from their intended purpose.
“We have never reduced the amount of sales taxes we’re paying into the highway fund,” Groves said in a written statement. “But somehow, those funds keep getting diverted for other projects that do not help the majority of Coloradans pursue a better life.”
Tom Peterson, executive director of the Colorado Asphalt Pavement Association, described current road conditions as a crisis.
“We think 175 is a solution that would bring in sustainable funding dollars to move the needle,” Peterson said in an interview with The Denver Gazette.
Opponents warned the shift would pressure core programs.
Medicaid, K-12 education and higher education together account for about 71% of General Fund spending, according to budget documents.
The Department of Health Care Policy and Financing — the agency in charge of state Medicaid — makes up roughly 32.8% of total state appropriations, with a General Fund share of about $5.75 billion. K-12 education accounts for about 27.6% of appropriations, with base General Fund support of roughly $4.6 billion, plus supplemental funding. Higher education receives about 9.9% of appropriations, with roughly $1.6 billion from the General Fund.
The Legislative Council Staff analysis projects the initiative would redirect $538.9 million from the General Fund in the first full year. The initiative itself does not mandate cuts to any specific program — the Colorado General Assembly retains authority to decide how to address that shift.
An information page on the Colorado General Assembly website contains more information about the initiative.
The Colorado Department of Transportation did not respond to a request for comment by press time.

