Colorado reviews $2.3 billion transportation budget for fiscal year 2028

The Colorado Transportation Commission has commenced a review of the state’s $2.3 billion transportation budget for fiscal year 2028, which is set to begin on July 1, 2027. During an October 15 work session, Colorado Department of Transportation Deputy Chief Financial Officer Bethany Nicholas presented the draft budget, noting that the revenue situation has become increasingly complex.

Commissioners raised concerns regarding inflation outpacing the agency’s budget, which has remained relatively flat in recent years. Revenue sources include federal programs, which account for approximately 35% of the budget, and enterprise funds—such as the Colorado Transportation Investment Office and the Clean Transit Energy Fund—which comprise about one-quarter of the total revenue.

The Highway User Tax Fund remains the primary source of state highway system funding, accounting for roughly 30% of the budget. However, officials noted that revenues from this fund have stagnated due to improved vehicle fuel efficiency reducing gas tax collections, despite increases in certain fee rates.