Colorado's 2025 legislative session kicked off on January 8th, with lawmakers facing a $1 billion budget shortfall and debates on issues ranging from housing to health care[11]. Democrats retain control of both chambers, though with a slightly smaller majority in the House after Republicans flipped three seats in the recent election[11].

The state's economic outlook shows signs of weakening, according to a joint report from the University of Colorado and the Secretary of State's office. Business closings jumped 53% in the fourth quarter of 2024, while new business filings dropped[12]. Colorado's unemployment rate reached 4.4% last month, higher than the U.S. average[12].

In education news, Colorado teachers protested at the state capitol against proposed cuts to the school budget. Thousands of educators gathered to voice concerns about funding uncertainties at both state and federal levels[10]. The protests come as the state grapples with a $1.2 billion budget shortfall[10].

On the environmental front, Colorado experienced a generally warm and dry start to the winter of 2024-2025, followed by periods of very cold temperatures in January[13]. The Climate Prediction Center's outlook for spring 2025 leans towards above-normal temperatures and below-normal precipitation across south central and southeast Colorado[13].

In business news, the Colorado Economic Development Commission approved job growth incentive tax credits for Project Skyforge, a 3D printing manufacturing company for the aerospace industry. The project could create 392 new jobs with an average annual wage of $130,867 in the Metro Denver region[15].

The state is also closely monitoring drought conditions. The February 28th seasonal drought outlook predicted that most of Colorado would develop drought conditions heading into May, particularly in the southern and western regions[18]. Snowpack in southern areas is lagging, while northern mountains are closer to average levels[18].

Looking ahead, Colorado's legislative session will continue through May 7th, with lawmakers tackling issues such as housing affordability, workforce development, and the integration of AI technologies[2]. The state will also be watching for potential impacts of the transition from La Niña to El Niño weather patterns, which could bring wetter conditions later in the year[8].