Budget & Taxes

The act transfers $10 million from the tobacco education programs fund to the preschool programs cash fund on June 30, 2027.     For the 2026-27 state fiscal year, the act reduces the general fund appropriation to the department of early childhood (department) for the universal preschool program by $10 million and makes a corresponding $10 million appropriation to the department from the preschool programs cash fund for the universal preschool program.(Note: This summary applies to this bill as enacted.)

Under existing law, the department of public safety administers the wildfire resilient homes grant program, which provides grants to homeowners for the purpose of making their homes more resilient to wildfire risk. The grant program is funded through the wildfire resilient homes grant program cash fund (grant program cash fund).     The act requires the state treasurer to transfer the unexpended and unencumbered balance of the grant program cash fund to the general fund on June 30, 2026, and repeals the wildfire resilient homes grant program, effective July 1, 2026.(Note: This summary applies to this bill as enacted.)

Current law requires counties to offer Colorado works program (works program) applicants and participants that demonstrate good cause an extension beyond the 60-month lifetime maximum. Good cause includes an applicant or participant who is a child-only case, who is the head of a single parent household unit and has a child less than one year old, or who is experiencing hardship. The act makes the extension permissible rather than a requirement and removes an applicant or participant who is a child-only case or experiencing hardship from the good cause determination.     The act suspends the works program basic cash assistance grant cost of living adjustment during the 2026-27 and 2027-28 state fiscal years.     Current law establishes minimum reserve balances for the total statewide county temporary assistance for needy families (TANF) reserve and the Colorado long-term works reserve (reserves). The act removes those reserve minimums. The act eliminates a requirement for each reserve to replenish money in the other under certain conditions and for the general assembly to effectively backfill the balances of both reserves if their balances fall below specified minimums.(Note: This summary applies to this bill as enacted.)

The act directs the state treasurer to transfer $130 million from the state affordable housing fund (fund) to the general fund on June 30, 2026, and makes 3 corresponding adjustments to the affordable housing financing fund (financing fund). First, the act reduces the July 1, 2026, transfer from the fund to the financing fund by the amount of the June 30, 2026, transfer from the state affordable housing fund. Second, for the 2026-27 state fiscal year only, the act adjusts the prioritization of programs funded by the financing fund so that the programs are funded in the following order: The concessionary debt program, the affordable housing equity program, and the land banking program. Third, the act ensures that this transfer does not reduce the amount that may be spent on administrative expenses to implement programs funded by the financing fund in the 2026-27 state fiscal year and pools the costs of administering these programs between the administrator and the office of economic development for state fiscal years beginning with the 2026-27 state fiscal year.     Under current law, if legislative council staff's March economic and revenue forecast projects that state revenue will not exceed the state fiscal year spending limit, the general assembly may reduce the funding allocated to the financing fund. The act allows for the general assembly to so reduce the funding allocated to the financing fund for the 2025-26 state fiscal year as a result of revenue forecasts projecting that state revenue will not exceed the state fiscal year spending limit.(Note: This summary applies to this bill as enacted.)

The act specifies monthly subsidy payment reimbursement limits for the adoption assistance program and the relative guardianship assistance program that apply to contracts that take effect July 1, 2026, or later, and prohibits reimbursement for services other than nonreoccuring adoption expenses. The act requires the state department of human services to create a standardized notice for families that describes the reimbursement change. The act requires the county departments of human or social services to provide the notice by June 15, 2026, to families currently receiving services.     The act reduces the state fiscal year 2025-26 appropriation to the department of human services for adoption and relative guardianship assistance made in the long bill as follows:From the general fund, by $2,199,750; andFrom cash funds, by $407,295.(Note: This summary applies to this bill as enacted.)

The act reduces by $5.2 million the appropriation for the Colorado academic accelerator grant program for the 2023-24 state fiscal year, which is available for expenditure through the 2026-27 state fiscal year.(Note: This summary applies to this bill as enacted.)

The act repeals the teacher recruitment education and preparation program (TREP) after the 2026-27 budget year. The act repeals the teacher recruitment and preparation program and pathways in early technology early college high schools working group on July 1, 2027.     On July 1, 2026, the act requires the state treasurer to transfer $799,200 from the electrifying school buses grant program cash fund to the state education fund. The general assembly declares that TREP may receive funding from the state education fund.     For the 2026-27 state fiscal year, the act caps the amount that a district receives for a student participating in TREP under the school finance formulas at $7,104.     The act increases the cash fund appropriation to the department of education for state share of districts' total program funding and decreases the cash fund appropriation for extended high school in the 2026-27 long bill in order to fund TREP for the 2026-27 state fiscal year. The amount of the changes is contingent on whether House Bill 26-1364, concerning the calculation of the consumer price index for the 2025 calendar year, becomes law.(Note: This summary applies to this bill as enacted.)

The act eliminates financial assistance and supports and reimbursement to county departments of human or social services (county departments) for non-certified kinship care homes.     The act specifies that county departments are not required to provide financial assistance and supports for non-certified kinship care homes, except as required by the federal 'Social Security Act' and by Colorado's out-of-home placement required services and temporary custody provisions.     The act requires the department of human services to create a standardized notice for non-certified kinship care providers regarding the discontinuation of non-certified kinship care financial assistance. The act requires county departments to provide the notice by June 15, 2026, to non-certified kinship foster care homes currently receiving monthly payments.(Note: This summary applies to this bill as enacted.)

The act repeals limited purpose fee-for-service contracts for: the career pathways program, the multidisciplinary health-care provider access training program, and the career and technical education and apprenticeship programs alignment, on June 30, 2028; and cybersecurity and distributed ledger technologies and the food systems advisory council, on June 30, 2026.     The act repeals, on June 30, 2028, the multidisciplinary health-care provider access training program, the career pathways program, and the state apprenticeship agency's career and technical education and apprenticeship programs alignment requirement.(Note: This summary applies to this bill as enacted.)

The act repeals the requirement for the general assembly to appropriate money in the 2026-27 state fiscal year for the out-of-school time program grant program (grant program).     The act reduces the appropriation for the 2026-27 state fiscal year to the department of education for use by the grant program by $1,750,000.(Note: This summary applies to this bill as enacted.)