Budget & Taxes (Appropriations)

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.)

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 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.)

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.)

The existing nurse home visitor program (program) provides regular in-home visiting nurse services to low-income first-time mothers during their pregnancies and through their children's second birthday. The nurse home visitor program fund (fund) is subject to annual appropriation by the general assembly to the department of early childhood (department) for grants to entities for operation of the program. Among other revenue sources, the fund consists of money received pursuant to the master tobacco settlement agreement. The act requires the state treasurer, on July 1, 2026, and on each July 1 thereafter through July 1, 2029, to transfer $5.1 million from the fund to the Colorado child abuse prevention trust fund (trust fund).     Funds from the trust fund are subject to annual appropriation by the general assembly to the Colorado child abuse prevention board (board) within the department for child abuse prevention programs. These prevention services are eligible for reimbursement money received for prevention services and programs identified in the federal Title IV-E prevention services clearinghouse pursuant to the federal 'Family First Prevention Services Act of 2018' (federal reimbursement money received for prevention services and programs). The trust fund and the board are scheduled to repeal on July 1, 2027. The act continues the trust fund and board indefinitely.     The act requires the department, on or before November 1, 2029, to report to the joint budget committee on the effect of the transfers from the fund to the trust fund, including an accounting of any additional federal reimbursement money received for prevention services and programs.     For the 2026-27 state fiscal year, the act increases an appropriation for home visiting from the general fund to the department by $5.1 million and decreases by a corresponding amount an appropriation for home visiting to the department from the fund. For the 2026-27 state fiscal year, the act increases an appropriation for child maltreatment prevention from the Colorado child abuse prevention trust fund to the department by $5.1 million and decreases by a corresponding amount an appropriation to the department from the general fund.(Note: This summary applies to this bill as enacted.)

Current law requires the general assembly to appropriate $650,000 from the general fund to the department of local affairs (department) on July 1, 2026, and $1 million from the general fund to the department on July 1, 2027, to reduce participating employer contributions to a multiple employer health trust for volunteer firefighters and part-time firefighters. The act repeals the appropriation otherwise required on July 1, 2026.     Current law requires the general assembly to appropriate money from the general fund to the division of criminal justice in the department of public safety for the purpose of reimbursing a multiple employer health trust for the direct costs of providing cardiac and other health screenings for peace officers as follows:$350,000 for the state fiscal year beginning July 1, 2026; $500,000 for the state fiscal year beginning July 1, 2027; $1 million for the state fiscal year beginning July 1, 2028; andOn each July 1 thereafter, sufficient funds.The act repeals the appropriation otherwise required on July 1, 2026.     For the 2026-27 state fiscal year, the general fund appropriation and the reappropriated funds appropriation from the firefighter benefits cash fund to the department of local affairs for firefighter heart and circulatory malfunction benefits are each decreased by $150,000.     For the 2026-27 state fiscal year, the general fund appropriation to the department of public safety for use by the division of criminal justice for first responder employer health benefit trusts is decreased by $100,000.(Note: This summary applies to this bill as enacted.)

The act requires a state agency, defined as any department, commission, council, board, bureau, committee, institution of higher education, agency, or other governmental unit of the executive, legislative, or judicial branch of state government that receives an appropriation or is otherwise included in the annual general appropriation act, to submit a base budget for the upcoming state fiscal year to the joint budget committee and the office of state planning and budgeting (office) on or before September 1 of each year, beginning in 2026. The act excludes specific independent agencies within the judicial department from this requirement. For these excluded agencies, the office of administrative services for independent agencies must submit a single, consolidated base budget on their behalf. A base budget is defined as the total amount appropriated in the annual general appropriation act and other legislation enacted in the prior state fiscal year plus:Out-year costs or savings from legislation adopted in prior years that were not included in the appropriations for the preceding state fiscal year; and Budget adjustments from prior years that were not included in the appropriations for the preceding state fiscal year.A state agency is required to submit its base budget using a format agreed upon by state agencies and the office, in coordination with joint budget committee staff.     The act also requires the director of the office, in collaboration with the executive director of the department of personnel, to provide information related to the office's calculations for common policies, as annually submitted in the governor's November 1 budget request, to the departments, institutions, and agencies of the executive, judicial, and legislative branches of state government as soon as practicable prior to the submission of the November 1 budget request.(Note: This summary applies to this bill as enacted.)

Provides for the payment of expenses of the executive, legislative, and judicial departments of the state of Colorado, and of its agencies and institutions, for and during the fiscal year beginning July 1, 2026, except as otherwise noted.(Note: This summary applies to this bill as enacted.)

If an audit of a medicaid provider who provides nonemergency medical transportation services or pediatric behavioral therapy is initiated after July 1, 2026, for services provided from January 1, 2022, through December 31, 2023, the act authorizes the department of health care policy and financing (HCPF) to determine and recover overpayments to a provider using statistical sampling and extrapolation. If an audit identifies a statistically significant pattern of alleged overpayments to a provider, the act authorizes the state auditor to use the same statistical sampling and extrapolation methods to audit services provided by the provider from January 1, 2024, through December 31, 2025.     If the audit identifies an alleged overpayment, HCPF is required to issue a notice of the alleged overpayment within 60 days after the alleged overpayment is identified. The notice of alleged overpayment must include the basis of the alleged overpayment, the rationale for the alleged overpayment, the methodology used to calculate the alleged overpayment, and information on how HCPF identified the alleged overpayment.     If HCPF enters into a contract for the purpose of conducting an audit, the contract must not be a contingency-based contract based on a percentage of the amount of recovery collected from the provider.     After HCPF completes an audit of a provider, the state auditor's office is required to conduct an examination to determine that proper statistical sampling and extrapolation methods were used by HCPF when determining whether overpayments were made to a provider. The state auditor shall annually present a report of the findings to the legislative audit committee and the joint budget committee.     The act reduces the general fund appropriation to HCPF for medical and long-term care services for Medicaid-eligible individuals by $6,861,775 and increases the cash fund appropriation to HCPF for medical and long-term care services for Medicaid-eligible individuals by $13,723,550.(Note: This summary applies to this bill as enacted.)