Budget & Taxes (State Budget)

The 2025 general appropriations act is amended to balance and make adjustments to the total amount appropriated to the department of corrections. The general fund portion of the appropriation is increased, and the cash funds and reappropriated funds portions are decreased.(Note: This summary applies to this bill as enacted.)

If the executive director of the department of health care policy and financing (state department) receives gifts, grants, and donations for the purpose of providing support for the development and funding of an enhanced reimbursement model for nursing facilities that serve residents with behavioral health needs, the state department is required to use the gifts, grants, and donations for that purpose. Receiving gifts, grants, and donations for this purpose does not commit the state to an expenditure of general fund money, and the general assembly shall not reduce any appropriation made to the state department for the same purpose. If requested by the joint budget committee, the state department is required to report the state department's use of the gift, grants, and donations received.(Note: This summary applies to this bill as enacted.)

HJR 1028 is a joint resolution that declares the Colorado House of Representatives' intent to honor a $2 million investment in school funding studies by creating a multi-year plan to address their findings. The bill directs the legislature to review the recommendations from two recent studies, which found that current school funding levels are inadequate and teacher salaries are too low, and to decide which study's methodology to follow for implementation. It requires the development of a structured plan that includes revenue triggers to phase in changes aimed at improving school funding equity and teacher compensation.

This bill reaffirms the principles of Colorado's Taxpayer Bill of Rights (TABOR), a 1992 constitutional amendment that requires voter approval for tax increases, debt, and spending growth beyond inflation and population limits. It emphasizes the need for clear ballot information and transparency so voters can make informed decisions about fiscal measures. The legislation also highlights TABOR's role in limiting unfunded mandates and protecting taxpayers from excessive government spending. By restating these existing constitutional protections, the bill aims to ensure that future government actions adhere to the original intent of taxpayer consent and fiscal accountability.

The act directs the state treasurer to annually transfer no more than $3 million from the severance tax perpetual base fund to the species conservation trust fund.     The act also directs the state treasurer to, beginning on June 30, 2027, annually transfer from the severance tax operational fund to the general fund the lesser of $14.2 million or the difference between the amount of severance tax revenue projected to be deposited in the operational fund in the current fiscal year and the amount appropriated from the operational fund for certain programs in the same fiscal year.     The cash funds appropriation from the severance tax operational fund for the 2026-27 state fiscal year to the department of natural resources for use by the executive director's office for the species conservation trust fund is decreased by $3,000,000.(Note: This summary applies to this bill as enacted.)

The act exempts the public school construction and inspection cash fund and the health facility construction and inspection cash fund from the annual limitations on the amount of uncommitted reserves that may be held in a cash fund (maximum reserve). Instead, those cash funds are subject to the same substantive maximum reserve requirements if the uncommitted reserves of the fund exceed the allowable maximum reserve for 3 consecutive fiscal years.(Note: This summary applies to this bill as enacted.)

The public defender and prosecutor behavioral health support program (program) is funded through any appropriation made for the program and any gifts, grants, and donations received for the program. Current law splits the program allocation to direct 50% of the money to the Colorado district attorneys' council to award grants to district attorneys' offices and 50% to the office of the state public defender.     For state fiscal year 2026-27, the program allocation split is altered to direct 100% of program money to the office of the state public defender.(Note: This summary applies to this bill as enacted.)

The act requires the state treasurer to transfer money from certain cash funds to the general fund.     On June 12, 2026, the state treasurer is required to transfer $16,747 from the local governmental entity backfill cash fund to the general fund.     On June 28, 2026, the state treasurer is required to transfer $5.3 million from the school and child care clean drinking water fund to the general fund.     On June 30, 2026, the state treasurer is required to transfer the following amounts to the general fund:$1,057,001 from the scale-up grant fund;$796,959 from the qualified apprenticeship intermediary grant fund;$200,000 from the immediate payment fund;$500,000 from the Colorado uninsured employer fund;$750,000 from the records and reports fund;$9.2 million from the kickstarter program master account, in consultation with collegeinvest;$200,000 from the electronic recording technology fund;$250,000 from the tobacco settlement defense account within the tobacco litigation settlement cash fund;$1 million from the Colorado bureau of investigation identification unit fund;$11 million from the information technology revolving fund;$10 million from the technology risk prevention and response fund;$15 million from the small business recovery and resiliency fund;$1 million from the supplemental state contribution fund;The unexpended and unencumbered balance of the controlled maintenance trust fund;$1 million from the account for the department of public safety within the indirect costs excess recovery fund;$800,000 from the unused state-owned real property fund;$5.4 million from the supplier database cash fund;$215,000 from the fixed-wing and rotary-wing ambulances cash fund;$5,162,373 from the community impact cash fund;$3 million from the mobile home park water quality fund; $7,252,996 from the severance tax operational fund; and$19.4 million from the local government severance tax fund.     On July 1, 2026, the state treasurer is required to transfer the following amounts to the general fund:$400,000 from the peace officers behavioral health support and community partnership fund;$117,551 from the child care facility development cash fund;$427,113 from the multidisciplinary crime prevention and crisis intervention grant fund;$111,191 from the law enforcement workforce recruitment, retention, and tuition grant fund;$686,890 from the state's mission for assistance in recruiting and training (SMART) policing grant fund;$15 million from the 'Infrastructure Investment and Jobs Act' cash fund; andAn amount equal to the unexpended and unencumbered balance of the electrifying school buses grant program cash fund minus $799,200.     On June 30, 2027, the state treasurer is required to transfer the following amounts to the general fund:$20 million from the information technology revolving fund;The unexpended and unencumbered balance of the decarbonization tax credits administration cash fund; $5 million from the community impact cash fund;$11,150,000 from the severance tax operational fund; and$27.3 million from the local government severance tax fund.     On June 30, 2027, and on each June 30 thereafter through June 30, 2033, the state treasurer is required to transfer $400,000 from the mobile home park resident empowerment loan and grant program fund.(Note: This summary applies to this bill as enacted.)

The act relocates in statute the disability support fund (fund), which finances the work of the Colorado disability opportunity office (office). The fund receives revenue from fees paid for license plates in a retired style and from the sale of unique vehicle registration numbers. The act makes the office responsible for administering the sale of these unique vehicle registration numbers, which was previously a duty of the Colorado disability funding committee (committee) housed within the office. The act repeals the committee on July 1, 2027. The fund is subject to annual appropriation to support the office and, for state fiscal year 2026-27 only, the fund is also subject to annual appropriation by the general assembly to the department of labor and employment (department) for vocational rehabilitation. Beginning on October 1, 2026, the $25 annual fee paid for license plates in a retired style is replaced by a one-time and annual fee of $2.50 credited to the fund and a one-time and annual donation of $22.50 remitted to the Colorado disability funding authority (authority), which is a newly created special purpose authority.     The authority is governed by a board of 13 members appointed by the governor, the majority of whom are individuals with disabilities, individuals with immediate family members with disabilities, or individuals who are caregivers to a family member with a disability. In making the appointments, the governor must ensure that the authority board has members with experience in or knowledge of:Business and business management;Nonprofit entities and managing nonprofit entities;Advocacy for individuals with disabilities;The practice of medicine, with experience working with individuals with disabilities; andThe practice of law, with experience working with individuals with disabilities.     The authority is required to invite nonprofit entities, independent living centers, county departments of human services, county departments of social services, and other state and county agencies to submit proposals for programs to aid individuals with disabilities in accessing disability benefits. Beginning on July 1, 2027, the authority is required to award a contract or grant to one or more of the entities that submitted program proposals. When adequate funding is available, the authority may also:Accept and review proposals to fund projects or programs that study or pilot new and innovative ideas that will lead to an improved quality of life or increased independence for individuals with disabilities; andMake grants or develop, implement, or deliver education programs concerning reserved parking that is available to an individual with a disability affecting mobility.     On or before December 1, 2027, and on or before each December 1 thereafter, the authority is required to prepare and submit a financial and performance report to the joint budget committee. In addition to this annual report, the state auditor may also be required to conduct or cause to be conducted postaudits of the authority.     By October 1, 2026, the state treasurer is required to issue a warrant in the amount of $523,343 from the fund to the authority. On June 30, 2026, the state treasurer is required to transfer $21 million from the fund to the general fund.     For the 2026-27 state fiscal year, the act decreases by $100,000 the appropriation from the disabled parking education and enforcement fund to the department for use by the office for operating expenses.     For the 2026-27 state fiscal year, $1 million is appropriated from the fund to the department for use by the division of vocational rehabilitation and independent living services.     For the 2026-27 state fiscal year, $27,000 is appropriated from the fund to the department of revenue for use by the division of motor vehicles for DRIVES maintenance and support.(Note: This summary applies to this bill as enacted.)

The act requires the state treasurer to make the following transfers to the general fund on June 30, 2026:$27,905,384 from the refinance discretionary account in the ARPA refinance state money cash fund;$4,085,246.49 from the revenue loss restoration cash fund;$1,974,702.20 from the economic recovery and relief cash fund;$1,005,850.24 from the behavioral and mental health cash fund; and$750,190.06 from the state highway fund.     The act extends the deadline from December 31, 2026, to June 30, 2027, for the department of human services to spend money appropriated in 2022 from the behavioral and mental health cash fund for capital construction related to a youth neuro-psych facility at the Colorado mental health institute at Fort Logan. The act delays a corresponding transfer of money from the behavioral and mental health cash fund.     The act reduces appropriations made in 2022 to the department of health care policy and financing by $800,000 and to the department of early childhood by $1,616,989.(Note: This summary applies to this bill as enacted.)