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.

Contingent upon voter approval at the November 2026 general election of a proposed initiative to amend the state constitution to change existing law on transportation funding and to increase the amount of state revenue dedicated to road transportation (proposed initiative), from January 1, 2027, through July 1, 2030, the act reduces:The excise tax on gasoline from $0.22 per gallon to $0.14 per gallon;The excise tax on special fuel from $0.205 per gallon to $0.13 per gallon; Certain vehicle registration fees, including late fees; andThe road usage fees from $0.06 per gallon to $0.04 per gallon and then, beginning in state fiscal year 2027-28, as necessary to offset the amount of state revenue diverted to transportation uses as the result of the proposed initiative.     The act creates the support road transportation fund (fund) contingent upon voter approval of the proposed initiative. The fund consists of state revenue dedicated to road transportation by the proposed initiative. Money in the fund is used to replace certain transportation-related general fund transfers for payments for the financed purchase of assets or certificate of participation agreements, and to replace certain general fund transfers to the state highway fund. The money remaining in the fund after making these transfers is allocated as follows:60% is paid to the state highway fund;23% is paid to counties for certain transportation expenses; and17% is paid to cities and incorporated towns for certain transportation expenses.     The act clarifies that state revenue collected to support road transportation, as defined in the proposed initiative, does not include enterprise fee revenue.     The act creates the road enterprise to complete preventive maintenance, repair, rehabilitation, and reconstruction projects to improve the condition of the roadway surface of the state highway system. The road enterprise is authorized to impose fees for oversize and overweight vehicles and longer vehicle combinations. The creation of the road enterprise is not contingent upon voter approval of the proposed initiative.     Contingent upon the proposed initiative being withdrawn or not submitted for the November 2026 general election, the act creates the transportation funding working group to evaluate and make recommendations to the general assembly, the transportation commission, and the governor concerning funding state and local surface transportation maintenance, repair, capacity, and safety.     Lastly, the act reduces the July 1, 2026, transfer from the general fund to the state highway fund from approximately $50 million to $500,000.(Note: This summary applies to this bill as enacted.)

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 makes optional an appropriation to comply with matching requirements under the federal 'Richard B. Russell National School Lunch Act' and allows the amount to be appropriated from the healthy school meals for all program cash fund.      The act allows money for administration of the summer electronic benefits transfer for children program to be appropriated from the healthy school meals for all program cash fund.     The act makes an appropriation for the start smart nutrition program optional, repeals the start smart nutrition program cash fund, transfers the start smart nutrition program cash fund balance to the general fund, and allows an appropriation for the start smart nutrition program to be made from the healthy school meals for all program cash fund.     The act makes an appropriation for the child nutrition school lunch protection program optional and allows an appropriation for the child nutrition school lunch protection program to be made from the healthy school meals for all program cash fund.     Under current law, the department of education administers a local school food purchasing program and a local school food purchasing technical assistance and education grant program (legacy local school food programs) that are distinct from the local school food purchasing program and technical assistance and education grant programs within the 'Healthy School Meals for All Act' (HSMA local school food programs). The act permits the general assembly to appropriate money for the legacy local school food programs if the healthy school meals for all program cash fund does not fully fund the HSMA local school food programs.     The act appropriates $3,001,741 from the healthy school meals for all program cash fund to the department of education for the affected programs. The act reduces appropriations for the 2026-27 state fiscal year to the department of education for the affected programs by $3,839,685, of which $229,097 is from the general fund and the remainder from various cash funds.(Note: This summary applies to this bill as enacted.)

On July 1, 2027, the act repeals the decarbonization tax credits administration cash fund, which is subject to annual appropriation to the department of revenue and the Colorado energy office to pay for the direct and indirect costs associated with the implementation and administration of various decarbonization tax credits.(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.)