Budget & Taxes

The act repeals the pay for success contracts program administered by the office of economic development and eliminates the pay for success contracts fund (fund) and the pay for success contracts account (account). The state treasurer must transfer all of the money in the fund and the account to the general fund on June 30, 2026.(Note: This summary applies to this bill as enacted.)

The act eliminates an annual transfer of $2.1 million from the limited gaming fund to the innovative higher education research fund.(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.)

Current law requires the state treasurer to issue a warrant in the amount of $225 million to the public employees' retirement association (PERA) on July 1 of each year as a direct distribution (direct distribution) and requires PERA to allocate the direct distribution to the trust funds of each division of PERA as it would an employer contribution, in a manner that is proportionate to the annual payroll of each division, except in certain circumstances. The act changes the allocation of the direct distribution by specifying that, beginning with the direct distribution occurring on July 1, 2026, and on July 1 of each year thereafter, PERA is required to allocate the direct distribution to the trust funds of each division of PERA on an actuarial basis to maximize PERA's blended total contribution amount in a manner that limits, to the extent possible, the triggering of automatic adjustment provisions, which are triggered when PERA's divisions fall below a targeted level of funding. Beginning July 1, 2026, the act prohibits PERA from allocating any portion of the direct distribution to the local government division or the Denver public schools division; except that, beginning July 1, 2030, the Denver public schools division is no longer excluded.     The act also changes the amount of PERA employer contributions that are allocated to the health care trust fund from 1.02% of member salaries to 0.52% of member salaries.(Note: This summary applies to this bill as enacted.)

On June 30, 2026, the state treasurer is required to transfer the following amounts from the unclaimed property trust fund (UPTF):$72.8 million to the general fund; and$2.2 million to the division of housing to be deposited into the housing development grant fund (grant fund).     On July 1, 2026, the act repeals the statutory provisions that authorize future transfers from the UPTF to the grant fund and to the adult dental fund.     For the 2026-27 state fiscal year, $63,491,322 is appropriated from the general fund to the department of health care policy and financing (HCPF), and an appropriation to HCPF from the adult dental fund is decreased by a corresponding amount. The appropriation takes effect only if the annual general appropriation act for the 2026-27 state fiscal year becomes law.(Note: This summary applies to this bill as enacted.)

Under current law, 28.9% of the revenue the state collects from the retail delivery fee is credited to the multimodal transportation and mitigation options fund (fund). Of the money from the retail delivery fee that is credited to the fund, currently 85% is allocated to the commission for local multimodal projects and 15% is allocated to the commission for state multimodal projects. Beginning on July 1, 2026, the act changes how the fund allocates and expends retail delivery fee revenue between state and local multimodal projects so that 70% of the fund is allocated to the commission for local multimodal projects and 30% of the fund is allocated to the commission for state multimodal projects.(Note: This summary applies to this bill as enacted.)

Under current law, the general fund reserve requirement is equal to 15% of the amount appropriated for expenditure from the general fund for that fiscal year minus:The difference between $100,000,000 and the proceeds of the sale of insurance premium and corporate tax credits that are credited to the health insurance affordability cash fund; andUnless money held in an escrow account in connection with the university of northern Colorado's college of osteopathic medicine is released, an additional $41,250,000.     The act lowers the reserve requirement to 13% for state fiscal years 2025-26 and 2026-27 and then raises it back to 15% for state fiscal years 2027-28 and later.(Note: This summary applies to this bill as enacted.)

The act:Authorizes the health insurance affordability enterprise (enterprise), on or after January 1, 2027, to issue revenue bonds of up to $100 million to fund enterprise programs, secured by the enterprise's revenues, and require the enterprise to pay bond obligations before allocating revenues for enterprise programs;Allows the enterprise to invest specified money in the health insurance affordability cash fund (cash fund) without regard to otherwise applicable requirements for such investments and to contract with private professional fund managers to advise on investment strategies;Modifies the allocation of enterprise revenue among authorized purposes and allows the enterprise to reallocate unexpended amounts for specified purposes;Directs the enterprise to require qualified individuals who are enrolled in state-subsidized individual health coverage plans eligible for subsidies from the enterprise to pay premiums established in rules adopted by the commissioner, in consultation with the health insurance affordability board (board);Requires the enterprise to adjust the statewide average premium reduction under the reinsurance program to 18% and to reduce the amount of bonds issued to account for the reduced costs for the reinsurance program;Directs the board, in recommending parameters for implementing subsidies for state-subsidized individual health coverage plans, to recommend coverage that prioritizes enrollment stability and customer predictability; when seeking input on its recommendations regarding plans, coverage, and the number of eligible slots, to enable feedback in at least English and Spanish and in other languages upon request; and to indicate how it incorporated such feedback into its final recommendations;Directs the enterprise to conduct or contract a third party to conduct a study to evaluate the feasibility of restructuring the enterprise programs to increase health insurance affordability and maximize enrollment in health insurance plans;Requires the enterprise to submit 3 written reports and make one in-person presentation to the joint budget committee each year regarding the status of the cash fund and, as part of its in-person presentation in January 2027, to provide an analysis of the effects of changing the statewide average premium reduction under the reinsurance program to 15% and of creating a tiered, income-based, structure for premium assistance for individuals who purchase insurance on the Colorado health benefit exchange (exchange);Repeals the tax credit for contributions to the exchange and replaces it with a tax credit for contributions to the enterprise; andDirects the state treasurer to transfer $40 million from the marijuana tax cash fund to the cash fund by June 30, 2026, reduces to $60 million the designation of money in the marijuana tax cash fund as the state emergency reserve for the 2025-26 and 2026-27 state fiscal years, and increases by $40 million the value of the capitol annex building for purposes of the state emergency reserve for the 2025-26 and 2026-27 state fiscal years.(Note: This summary applies to this bill as enacted.)

The act extends to July 1, 2027, certain requirements in existing law related to money appropriated to the Auraria higher education center (AHEC) for operational costs, including a requirement to use the money in accordance with baseline service level agreements entered into by AHEC's constituent institutions.(Note: This summary applies to this bill as enacted.)

Under existing law, the department of personnel administers the 'state procurement equity program', which includes a bond assistance program to help historically underutilized businesses that are small businesses offset the costs of obtaining a surety bond that is required for a solicitation for a state procurement opportunity. The bond assistance program is funded through the bond assistance program cash fund.     The act transfers the unexpended and unencumbered balance of the bond assistance program cash fund to the general fund on June 30, 2026. The department must use any encumbered balance that remains in the fund after the transfer only to fulfill the obligations encumbering the balance of the fund. The act repeals the bond assistance program, effective December 1, 2027.(Note: This summary applies to this bill as enacted.)