HB 26-1363

House Bill 26-1363 temporarily reduces Colorado's state budget reserve requirement from 15% to 13% for fiscal years 2025-2027. This change allows the state to allocate more funds towards spending during these two years, but it will revert back to the original 15% starting in fiscal year 2027-2028. The bill has been signed into law and is now in effect, meaning that for the next two fiscal years, the state can set aside a smaller portion of its budget as reserve funds compared to what was previously required.

Official Summary

Joint Budget Committee. Under current law, the general fund reserve requirement is equal to 15% of the amount appropriated for expenditure from the general fund for that fiscal year minus:The difference between $100,000,000 and the proceeds of the sale of insurance premium and corporate tax credits that are credited to the health insurance affordability cash fund; andUnless money held in an escrow account in connection with the university of northern Colorado's college of osteopathic medicine is released, an additional $41,250,000.     The bill lowers the reserve requirement to 13% for state fiscal years 2025-26 and 2026-27 and then raises it back to 15% for state fiscal years 2027-28 and later.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

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