Budget & Taxes (State Budget)

During the 2023-24 and 2024-25 state fiscal years, the general assembly appropriated money from the state education fund for expenditures related to the healthy school meals for all program. The act directs the state treasurer to transfer $31,066,831 from the healthy school meals for all program cash fund (program fund) to the state education fund on July 1, 2026.     Under current law, beginning on July 1, 2026, and on each July 1 thereafter, the state treasurer is required to transfer money from the state education fund to the program fund and to the healthy school meals for all program fund account (account) within the program fund. The act delays that requirement so that the treasurer is required to transfer money from the state education fund to the program fund and to the account beginning on July 1, 2028. In addition, the act repeals reporting requirements related to money in the program fund.(Note: This summary applies to this bill as enacted.)

The act requires the state treasurer to transfer $1.2 million from the universal high school scholarship cash fund (fund) to the Colorado economic development fund and $2.3 million from the fund to the general fund on June 30, 2026.(Note: This summary applies to this bill as enacted.)

Current law requires the general assembly to annually appropriate $50,000 to provide vouchers to individuals living in rural and frontier communities in need of behavioral health-care services. The bill repeals the requirement to appropriate money for that purpose.     The act:Repeals the requirement that the BHA contract with an independent third party to provide services and supports to behavioral health providers seeking to become behavioral health safety net providers;Repeals the building substance use disorder treatment capacity in underserved communities grant program;Repeals the recovery support services grant program;Transfers the balance of the high-risk families cash fund (fund) to the general fund and repeals the fund on July 1, 2026; andReduces appropriations to the behavioral health administration for the affected programs and services.(Note: This summary applies to this bill as enacted.)

Under current law, with certain exceptions, royalties and other payments for the depletion or extraction of a natural resource on public school lands is credited to the state public school fund, which is also known as the permanent fund.     The act requires that:For the 2025-26 state fiscal year, $25 million of this money be credited to the state public school fund; andFor the 2026-27 state fiscal year, $45 million of this money be credited to the state public school fund.(Note: This summary applies to this bill as enacted.)

Under current law, as a supplement to the state accountability system in the department of education, a local accountability system may be established by a local education provider to measure the performance of public schools and school districts in achieving student success and system effectiveness. The act repeals the local accountability system law, which includes the local accountability system grant program.     The act reduces the members of the accountability, accreditation, student performance, and resource inequity task force from 26 to 25 by removing the task force member who is a superintendent who represents a rural school district that participates in the repealed local accountability system grant program.(Note: This summary applies to this bill as enacted.)

The act repeals a professional development program for science teachers (program) on July 1, 2027. For the 2024-25 state fiscal year, the general assembly appropriated $3 million from the state education fund for the program, which money is available for expenditure through the 2026-27 state fiscal year. The act reduces the appropriation to $1.5 million.(Note: This summary applies to this bill as enacted.)

Joint Budget Committee. Current law authorizes medicaid reimbursement for therapy using equine movement provided by a licensed physical therapist, a licensed occupational therapist, or a certified speech-language pathologist. The bill repeals this provision and reduces the 2026-27 appropriation to the department of health care policy and financing by $181,514.(Note: This summary applies to this bill as introduced.)

The act changes the repeal date of the employment support and job retention services program (program) in the division of employment and training (division) in the department of labor and employment (department) from September 1, 2029, to July 1, 2026.     The state treasurer is required to transfer all unexpended and unencumbered money in the employment support and job retention services program cash fund (fund) to the general fund on June 30, 2026.     Pursuant to section 3 of the act, the appropriations made in the annual general appropriation act for the 2026-27 state fiscal year to the department for use by the division are adjusted as follows:The general fund appropriation for the fund is decreased by $250,000; andThe reappropriated funds appropriation from the fund is decreased by $250,000.     A reduction of an appropriation in the annual general appropriation act for the 2026-27 state fiscal year is not required pursuant to section 3 of the act if one of the following conditions is satisfied:The amount of the general fund appropriation to the department for use by the division for the fund is less than $250,000;The amount of the reappropriated funds appropriation from the fund to the department for use by the division for the program is less than $250,000; orThe annual general appropriation act for the 2026-27 state fiscal year does not include an appropriation to the department for use by the division for the fund or the program.(Note: This summary applies to this bill as enacted.)

The act recreates a provision that authorizes the state to retain the percentage of reimbursement that is in excess of the 50% federal match received for certain medicaid services provided (enhanced federal financial participation) during the COVID-19 pandemic.     The provision is repealed once the reconciliation of all reimbursements and payments for services delivered during the period of enhanced federal financial participation has been completed.(Note: This summary applies to this bill as enacted.)

The bill requires the general assembly, starting in state fiscal year 2027-28, to appropriate certain amounts to the wildfire resilient homes grant program cash fund, which amounts must be based on the amount of money in the wildfire mitigation capacity development fund that is used to fund grants in the prior state fiscal year. In awarding home hardening grants through the wildfire resilient homes grant program, the division of fire prevention and control in the department of public safety is required to prioritize homeowners who are income qualified or who lack the ability to perform the home hardening work because of age, disability, or illness.(Note: This summary applies to this bill as introduced.)