Colorado Sun readers are sharing their questions about the Colorado River and how it ties into water issues in the state. The shortage marks the difference between existing funding for water projects, generated through severance taxes and other sources, and the cost of projects the state has identified as necessary to make sure Colorado has enough water in coming years. Severance taxes, derived from oil and gas and other mineral extraction, generate roughly $160 million for various water programs, but that isn’t enough to pay for everything that is needed, according to the report. Severance tax revenues can vary widely from year to year and have been diverted from water programs frequently to help cover other state budget shortfalls. That program has grown significantly, generating $23.8 million for water projects during the state’s most recent fiscal year, which ended June 30, 2025.