Housing tops Colorado Gov. Jared Polis’ State of the State address

Housing, housing, and more housing will dominate Colorado Gov. Jared Polis’ agenda this legislative session as state leaders aim to encourage more building across the state.

The governor, entering his sixth year in office, previewed his priorities Thursday in his annual State of the State address to a packed Colorado House chamber. Roughly the first third of Polis’ nearly hourlong speech was dialed in on housing and transportation — including a full-throated push for the promise of the Front Range Passenger Rail plan and a call for more scrutiny of, and support for, metro Denver’s Regional Transportation District.

But even on the transportation front, his comments often tied back to ways to encourage the building of more housing.

“In our state, there is a sense of hopelessness and despair … around housing that’s on par, in some ways, with how people feel about the divisiveness of our national politics,” Polis said.

Polis also called for tax cuts and follow-through on the state finally meeting its constitutional obligations for education funding.

His emphasis on housing underscores the renewed effort by lawmakers and Polis to boost Colorado’s housing supply after a failed attempt at comprehensive land-use reform last year and, in the fall, the ballot box shellacking of Proposition HH. Voters in the November election rejected that sweeping effort to change the property tax formula and adjust the state’s revenue cap.

The address came after a mixed year for Polis. He sailed to reelection in November 2022, leading the Democratic ticket to historic control of state government and paving the way for further legislation on gun reform, reproductive health and other party priorities.

But after the 2023 attempt at Polis’ desired land-use reforms collapsed in May, the launch of universal preschool was marred by criticism that it wasn’t as available as many had expected, and the state made mistakes in the rollout. Then came Prop HH’s defeat and a special session called by Polis in November to address short-term property tax relief and other aid to Coloradans.

Polis delivered his late-morning speech to a joint session of lawmakers, state officials, dignitaries and other guests. While he spoke, pro-Palestinian protesters could be heard outside the Capitol, shouting through bullhorns and banging drums.

They had also protested during the legislature’s opening day ceremonies on Wednesday and during the November special session, disrupting proceedings. But on Thursday they weren’t able to sit in the gallery, which appeared full and had been reserved for preregistered attendees for the governor’s speech.

For mobile users, click here to watch the live stream.

“We must create more housing in our state”

In calling for housing reform Thursday, Polis cited parents who are worried their children will never own a home in Colorado; Coloradans concerned they won’t be able to grow old in their communities or downsize because of high interest rates and property taxes; health care workers, police officers, firefighters and teachers who are unable to live near the communities they serve; and business owners who can’t recruit needed talent and college students because they don’t think homeownership will ever be in their future.

“Simply put, we must create more housing in our state that Coloradans at all income levels can rent or buy in the communities where people want to live, near job opportunities that pay well,” Polis said. “And by reducing housing costs, we will also decrease homelessness in our communities.”

Polis and like-minded legislators began unveiling their second attempt at land-use reforms ahead of the session, with a plan to introduce several bills instead of a broad legislative package all in a single bill.

He and state officials, more and more, have seen transportation as tightly linked with housing through land-use policy. Polis has called for the state to leverage policies to increase density in certain areas, along with improving neighborhood connectivity to transit options.

He is bullish on the chances that a Front Range Passenger Rail line will be established in coming years. He made several references to the Apollo space program throughout his speech, including comparing the “moonshot” to passenger rail — a longtime hope of train boosters that historically has crashed into funding, timeline and infrastructure realities.

The federal government has approved $66 billion for rail building and maintenance throughout the country, and Polis wants Colorado to take part. Last month, the Front Range line received a boost when it was among routes placed in line for federal support, and potential funding, in coming years.

Colorado already has a network of commercial railroads that it can leverage to make good on north-south passenger rail from Denver to Fort Collins, Polis said, and potentially for passenger trips into the mountains.

“Yes, it’s big — and yes, it’s bold,” Polis said. “But I’m here to tell you, passenger rail service that works is within reach.”

The longtime Boulder resident also pitched the Front Range line as way to partner with RTD to fulfill its undelivered FasTracks promises for a train to Boulder and Longmont.

“FasTracks is just one example of a project that’s not years, but decades behind schedule. That’s unacceptable,” Polis reiterated when he took questions from reporters after the speech. “We look forward to rolling up our sleeves and finding a solution to deliver on Front Range passenger rail, including the promised Union Station-Boulder-Longmont piece, along with mountain rail.”

Lawmakers are drafting legislation that aims to reform how the sprawling metro transit agency is run, something Polis expressed support for during his speech. He did not endorse specific ideas related to RTD, which currently is overseen by a 15-member elected board. In recent years, the state has underwritten free fares during summer months for RTD and other transit agencies — a pilot that could lead to more state support in future years.

“We need to reexamine and reimagine governance and operational efficiencies, expand local partnerships … and give RTD and transit agencies all over our state the tools and structure and financial resources that they need to deliver better services to more people,” Polis said.

Call for cuts: “Taxes are simply too high”

Polis also referenced the state’s ongoing historic tax refunds. Colorado will again refund taxpayers billions of dollars collected over the revenue cap set by the Taxpayer’s Bill of Rights, or TABOR, amounting to a flat $800 for each.

That’s a sign, Polis said, that Colorado should collect less in taxes. He repeatedly has advocated cutting income tax rates and did so again Thursday, as Democrats consider bringing legislation that would make flat refunds permanent rather than an exception from the normal tiered approach, based on income.

“As demonstrated by our healthy surplus in Colorado, taxes are simply too high: income taxes, property taxes and the state sales tax,” Polis said. He suggested a “bold and balanced and progressive package” that would include income tax cuts. “We ignore that signal at our own peril.”

Speaking with reporters, Polis said the state’s supplement to the federal Earned Income Tax Credit and the child tax credit — both of which were expanded last legislative session — were examples of progressive refund mechanisms that could be boosted even further.

But he wants income tax cuts, “the more the better,” paired with it.

Rep. Leslie Herod, a Denver Democrat, said cutting taxes as part of a TABOR reform package would be “a much more difficult conversation” among her colleagues. It’s not a nonstarter, she added, but the big question would be how the proposal affects other caucus priorities.