SB 18-276

Senate Bill 18-276, which has been signed into law, increases Colorado's required reserve fund from 6.5% to 7.25% of the money allocated for spending in the general fund. This means that more money will be set aside as a financial cushion each year. The bill also removes certain types of payments and credits from being counted towards this reserve calculation, specifically lease-purchase agreements for real property and transfers to specific funds like the capital construction fund or controlled maintenance trust fund. This change affects how the state manages its budget reserves going forward.

Official Summary

Joint Budget Committee. For the fiscal year 2018-19, and each fiscal year thereafter, the bill increases the statutorily required general fund reserve from 6.5% to 7.25% of the amount appropriated for expenditure from the general fund. The bill also repeals the following exceptions from the definition of expenditure that is used to calculate the general fund reserve: Rental and other payments under a lease-purchase agreement for real property included in a separate, operating line item; and Money that the state controller credits from the general fund to the capital construction fund or to the principal of the controlled maintenance trust fund.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.) , Read More

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