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

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 act 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 this bill as enacted.)

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