By High Country Advocate Staff
LEADVILLE, Colo. — Lake County commissioners convened a special meeting Monday that opened with an unusually candid conversation between state leaders and local officials about Colorado’s fiscal challenges, economic opportunities, and the widening strain on small-county budgets.
Joining the board via Zoom were House Speaker Julie McCluskie (D-Dillon) and Sen. Mark Baisley (R-Woodland Park)—an uncommon bipartisan pairing whose discussion reflected both shared concern and sharply different philosophies on how to manage the state’s mounting financial pressures.
Colorado Faces $1.2 Billion Shortfall
Speaker McCluskie began by outlining the budget headwinds facing Colorado after the passage of H.R. 1, dubbed by former President Trump as “the one big beautiful bill.”
“Colorado is one of only four states that uses federal taxable income rather than adjusted gross income,” she explained. “When that federal bill was signed, it immediately affected our ability to collect certain revenues.”
The result: a $1.2 billion reduction in state revenue for the current fiscal year, with an additional $800–850 million gap expected for 2026-27.
To close the immediate hole, McCluskie said the state relied on equal parts reserves, reduced expenditures, and a modest revenue increase from adjustments to corporate tax credits.
“The governor’s proposal protects K-12 education,” she added, noting that Lake County schools will likely benefit under a new funding formula that raises statewide investment by 30 percent. However, she warned of “very difficult conversations ahead” over Medicaid costs, which have doubled under the state’s TABOR spending cap.
Sen. Baisley Calls for Spending Discipline
Sen. Baisley countered that the shortfall was “largely self-inflicted.”
“More than half of that deficit existed before the ‘one big beautiful bill,’” he said. “If we’ve increased revenue by $1.5 billion a year for seven years and still can’t balance the books, we need to sharpen the pencil and stop adding so many new wonderful things to spend money on.”
Baisley pivoted quickly to economic opportunity, citing conversations with Lake County Economic Development Director Adam DeCharm about bringing high-tech and aerospace suppliers into Leadville. He singled out Lockheed Martin—his former employer—as a “community-minded company” interested in pairing large contracts with smaller Colorado firms.
He also floated prospects for quantum-computing spin-offs, noting that the federal government designated Colorado as a national tech hub less than a year ago. “That’s a billion-dollar injection into the state,” he said, suggesting Lake County’s high altitude and cold climate could be an asset for companies that struggle with cooling costs on the Front Range.
Baisley added two more ideas: potential tie-ins with the Sundance Film Festival, now headquartered in Boulder, and geothermal-energy exploration should neighboring Chaffee County reject related development.
County Leaders Highlight Local Barriers
County Manager Candace Bryans and the commissioners used the discussion to underscore the infrastructure bottlenecks constraining Lake County’s growth.
“There’s no sanitation, water, or electric service out at the airport industrial park,” Bryans said. “Every project becomes more complicated because we’re a Superfund site. Even moving dirt requires extra layers of approval.”
She appealed for “creative ideas” or partnerships to help fund roads, utilities, and housing so Lake County can attract the kind of employers Baisley described.
Commissioners agreed that child-care shortages and housing costs were equally crippling. Only one early-childhood center—Bright Start—serves the county, operating from an aging former elementary school that requires trucked-in water and asbestos mitigation. That facility, they warned, may close within two years when the school district consolidates buildings.
“If families can’t find child care, they leave,” one commissioner said. “And when they leave, our schools lose future funding.”
McCluskie, who helped craft Proposition 123 housing-funding rules, acknowledged that current 35-percent income caps on deed-restricted mortgages “aren’t serving our mountain resort communities.” She promised to revisit the formula before the next legislative session.
Unfunded Mandates and Emergency Services
The conversation turned pointed when commissioners described unfunded state and federal mandates—particularly in human services and public safety—that force small counties to cut elsewhere.
“Even if we didn’t give a hoot about Medicaid or SNAP, we have to provide them anyway,” Bryans said. “When costs rise, we don’t get more money—we just have to take it from something else, like economic development or infrastructure.”
Baisley agreed the burden was real. “That’s very useful,” he said. “I’m sorry that’s happening—we’ll see what we can figure out.”
The board also cited rising costs for the sheriff’s office, EMS, and fire protection, which Lake County currently funds at roughly 70 percent of the fire district’s budget despite no statutory requirement to do so.
Baisley noted that a five-year state task force he sponsored is nearing recommendations to reform how emergency medical services are funded statewide—acknowledging that rural ambulance crews often lose money when patients aren’t transported.
McCluskie reminded the board that fire districts can now seek local sales-tax authority under Title 32, and that roughly $300 million in new statewide public-safety funding is slated for distribution over the next year. She promised to have staff provide details on Lake County’s share.
Common Ground Amid Fiscal Strain
Despite political differences, both state leaders echoed a theme of collaboration.
“I hope we can continue this conversation regularly,” McCluskie said.
Baisley agreed: “If this were easy, anybody could do it. I’m here to listen and be a good servant for you.”
County staff and commissioners expressed gratitude for the exchange and proposed quarterly follow-ups during the legislative session.
Later Business: NEPA Update and Budget Resolution
Following the legislative discussion, the board transitioned into its special meeting.
Environmental consultant Benjamin Burns of Pinyon Environmental reported that the Harrison Park NEPA review remains delayed by the federal government shutdown, though work should conclude once HUD personnel return.
The board then unanimously approved Resolution 2025-30, authorizing third-quarter supplemental budget adjustments and transfers between county funds.
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