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.
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.)
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.)
The act requires the secretary of state to refer a ballot issue at the November 2026 general election to seek voter approval for the state, beginning in the 2026-27 state fiscal year, to retain and spend an amount of state revenue equal to the amount of state public K-12 education funding in excess of the limitation on state fiscal year spending and to increase state public K-12 education funding by up to 2% per year for 10 years. The act directs legislative council staff to determine the amount of state public K-12 education funding and describes how legislative council staff will make that determination. The act creates a positive factor to increase state public K-12 education funding. The amount of the positive factor compounds annually for 10 years. The positive factor for the 2026-27 budget year is 2% of the program foundation calculated for the 2025-26 budget year. For the 2027-28 through 2034-35 budget years, it is the sum of 2% of the prior year's program foundation plus the prior year's positive factor. For the 2035-36 budget year and beyond, it is the sum of 2% of the 2034-35 program foundation plus the 2034-35 positive factor. A district's share of the positive factor is calculated proportionally based on the district's total program under the new school finance formula relative to the statewide total program. A district may only use its positive factor funding for increasing teacher pay, improving teacher retention, lowering class sizes, and increasing access to career and technical courses. For the 2026-27 state fiscal year, the children's account consists of an amount of money equal to the amount of state revenues that the state retains for a given fiscal year pursuant to voter approval of the act. For state fiscal years commencing on or after July 1, 2027, the account consists of that same amount minus an amount equal to the total dollar amount of warrants issued by the state treasurer to reimburse local governments for property tax exemptions. Money in the account must first be spent to pay districts their positive factor, then any remaining funds are appropriated for disability services and school services and to increase annual contact hours, and finally to programs prioritizing child care and full-day preschool. The act directs the state auditor to conduct and publish a report on excess state revenues for each state fiscal year that the state retains and spends state revenues in excess of the limitation on state fiscal year spending. That report must include descriptions of:The amount of state revenues that the state retained and spent that would otherwise have been in excess of the limitation on state fiscal year spending; andHow the state expended the state revenues that the state retained and spent that would otherwise have been in excess of the limitation on state fiscal year spending. Beginning August 1, 2027, the act requires each local education provider to post, online for free public access in a format that can be downloaded and sorted, its actual expenditures of any positive factor received. Lastly, the act updates provisions regarding the expanded earned income tax credit, the family affordability tax credit, and the affordable housing financing fund to ensure that voter approval of the act does not adversely impact those programs.(Note: This summary applies to this bill as enacted.)
The bill creates three enterprises (enterprises) in the behavioral health administration; the:Beer, cider, and apple wine impact and recovery enterprise;Spirits impact and recovery enterprise; andWine impact and recovery enterprise.The enterprises collect a fee from licensees that are manufacturers and wholesalers that distribute alcohol in Colorado, and use the fee for services described in the bill.The bill creates an alcohol impact and recovery enterprise board that governs the enterprises.The bill requires the state auditor to conduct an audit of the enterprise in the 2032-33 state fiscal year and each fourth state fiscal year thereafter.(Note: This summary applies to this bill as introduced.)
The 2025 general appropriations act is amended to balance and make adjustments to the total amount appropriated to the offices of the governor, lieutenant governor, and state planning and budgeting. The general fund, cash funds, and federal funds portions of the appropriation are increased and the reappropriated funds portion is decreased.(Note: This summary applies to this bill as enacted.)
The act:Increases the statewide base per pupil funding for the 2026-27 budget year by $208.60 to account for inflation;Sets a new statewide base per pupil funding amount for the 2026-27 budget year at $8,900.40; andSets the total program funding for the 2026-27 budget year at $10,178,856,871. Under current law, there are 2 total program formulas that are used to determine a school district's total program, commonly referred to as the old formula and the new formula. A school district's funded pupil count is a figure that is used as a part of determining a school district's total program. Under the new formula, for the 2026-27 budget year and each budget year thereafter, a school district's funded pupil count is calculated by determining the greater of the school district's pupil enrollment for the applicable budget year or the average of the district's pupil enrollment for the applicable budget year and the immediately preceding 2 budget years. However, the act requires that when specified conditions are met, a school district's funded pupil count is the school district's online pupil enrollment for the budget year, plus the school district's supplemental kindergarten enrollment for the budget year, plus the school district's extended high school pupil enrollment for the budget year, plus the greater of:The school district's pupil enrollment for the budget year;An amount equal to 50% of the school district's pupil enrollment for the budget year, plus an amount equal to 30% of the school district's pupil enrollment for the preceding budget year, plus an amount equal to 20% of the school district's pupil enrollment for the budget year that is 2 years preceding the budget year; orAn amount equal to 97% of the school district's pupil enrollment for the preceding budget year. A school district's cost of living factor is a figure that is used as a part of determining a school district's total program. Under the old formula and the new formula, the act requires the cost of living factor that was used for the 2025-26 budget year to apply in the 2026-27 budget year. Under current law, for the 2026-27 budget year, a district's total program is the greater of:The district's total program amount for the 2024-25 budget year; orThe amount calculated for the 2025-26 budget year under the old formula plus an amount equal to 30% of the difference between the amounts calculated between the old formula and the new formula. The act clarifies that for the 2026-27 budget year, if the calculation under the new formula is less than the calculation under the old formula, then that district's total program for the 2025-26 budget year is the greater of:The district's total program amount for the 2024-25 budget year under the old formula; orThe amount calculated for the 2026-27 budget year under the old formula. The act permits a school transformation grant recipient that is implementing a priority improvement or turnaround plan to use the grant award to plan for and implement rigorous redesign strategies. The act changes the provisions that determine the amounts of total program that school districts and the state charter school institute distribute to their charter schools. Related to the changes of these provisions, the act repeals at-risk supplemental aid for charter schools. The act exempts from a future repeal the general assembly's legislative declaration that using state education fund money for maintaining a website that explains major categories in the chart of accounts for local education providers is a permissible use of state education fund money. The act repeals the scheduled repeal of, resulting in a continuation of, a statute that authorizes contingency reserve fund payments to be used for rural or small rural school districts if an unusual financial burden would be caused by the withholding of local property taxes due to a delay in filing the audit report due to extraordinary problems that could not have been reasonably foreseen or prevented by the rural or small rural school district. The act adds an assistant superintendent, a vice principal, and an assistant principal to the list of eligible school employees who may receive a salary without a reduction in public employees' retirement association (PERA) benefits if the service retiree meets specified conditions. The act permits a local education provider to request that the department of education approve the local education provider's use of pencil and paper to complete any or every portion of a state assessment for grades 3 or 4 and requires that the local education provider be responsible for costs owed to the vendor that are associated with the administration of the assessment using pencil and paper. The act authorizes the state board of education to adopt rules that are necessary to determine the district of residence of a child with a disability for a circumstance that is not described under law. The act repeals the requirement that $500,000 be distributed to administrative units that enroll children with disabilities and instead requires that $1 million be distributed to fund reimbursements for administrative units that pay tuition or education expenses that ensure a free appropriate public education for a student in out-of-home placement who has an individualized education program. The act requires the department of education to engage stakeholders concerning public placements in facility schools and on the issue of whether to make recommendations concerning such placements to the state board of education regarding rules or to the general assembly regarding statutes. Under current law, each participating school food authority that satisfies certain requirements is eligible to receive a local food purchasing grant and an amount to increase wages or stipends for individuals employed to prepare and serve school meals. The act clarifies that a charter school that operates under a participating school food authority is eligible for the awards. The act:Prohibits a board of cooperative services (BOCES) from acting as a statewide authorizer of programs or schools; andLimits a BOCES to operating a school or program outside the geographic boundaries of its school district members, unless specified conditions are satisfied. The act permits a local education provider to offer one or more part-time programs for homeschool students if specified conditions are satisfied. The act requires an authorizer contracting with an education management provider to maintain appropriate independence from, and oversight of, the education management provider. The act prohibits a school district from creating a contract school that is a full-time complete educational program offered exclusively by a private entity pursuant to a contract with the public entity. The act appropriates:$3,755,558 to the department of education from the state education fund for the state share of districts' total program;$313,395 to the department of education from the state education fund for management and administration for information technology services and for use by school district operations for administration related to public school finance; and$3,385,203 to the department of education from the state education fund for school district operations for costs associated with holding charter schools harmless for changes in the distribution of total program funding. The act adjusts the 2026-27 long bill by decreasing:$8,502,195 from the appropriation from the state education fund to the department of education for the state share of districts' total program funding; and$3,504,995 from the appropriation from the state education fund to the department of education for use by school district operations for at-risk supplemental aid.(Note: This summary applies to this bill as enacted.)
