HB 26-1178

House Bill 26-1178 allows Colorado government departments, institutions, and agencies to spend more than their budgeted amount if they face unexpected federal funding cuts while the state legislature is not in session. This means that these entities can continue operating without interruption even if they lose anticipated federal money. The bill also updates how the state legislature can lift spending restrictions put in place when such overexpenditures occur, ensuring smoother financial management during budget crises. Since it has been signed into law, this measure is now active and guiding state operations.

Official Summary

Under current law, the controller may allow any state department, institution, or agency of the state, including any institution of higher education, to make an expenditure in excess of the amount authorized by an item of appropriation for the fiscal year if certain conditions are satisfied. One of those conditions is that the overexpenditure is necessary due to unforeseen circumstances arising while the general assembly is not meeting in a regular or special session. The act modifies that condition to also allow an overexpenditure when it is necessary due to a lapse in a federal appropriation that the joint budget committee determines is reasonably likely to occur while the general assembly is not meeting in regular or special session during which such overexpenditure can be legislatively addressed.     The act also makes a conforming amendment to the process by which the general assembly can remove the spending restriction that the controller attaches to an overexpenditure. If a supplemental appropriation is enacted for the overexpenditure or a portion of it:The controller's spending restriction is released in full; andThe department, institution, or agency of the state's overexpenditure authority ends.(Note: This summary applies to this bill as enacted.)

Topics

Votes