HB 25-1125

House Bill 25-1125, known as State Agency Budget Transparency, requires Colorado state agencies to provide more detailed budget information. Starting in the 2027-28 fiscal year, each agency must submit a budget request that includes identifying the least critical 10% of its spending and any overlapping programs, as well as a proposed budget that is at least 5% less than the current year's funding. Additionally, every decade, agencies will need to justify all their expenses in detail. The bill also expands reporting requirements for grants given by principal departments. Since it has been signed into law, these new transparency measures are now official state policy and will affect how Colorado’s government agencies manage and report their budgets.

Official Summary

Under current law, every department, commission, council, board, bureau, committee, agency, or other governmental unit of the executive, legislative, or judicial branch of state government (state agency) is required to submit a budget request to the joint budget committee on or before November 1 of every year. The bill clarifies what each state agency must include in its budget request beginning with the 2027-28 state fiscal year. The bill requires a state agency, as part of the state agency's budget request, to submit the following to the joint budget committee and relevant committee of reference: An ideal budget that identifies the least critical 10% in the budget and any duplicative programs administered by the state agency; and A budget that is at least 5% less than the current year's appropriations for the state agency. The bill requires a state agency to submit a budget request to the joint budget committee and relevant committee of reference every 10 years that justifies and explains every expense of the state agency. Lastly, the bill expands an existing reporting requirement and requires all principal departments, as part of the principal department's "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act" hearing, to report all grants made to the state agency during the immediately preceding state fiscal year. (Note: This summary applies to this bill as introduced.)

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