HB 24-1466

HB 24-1466 is a Colorado state bill that deals with the management and reallocation of federal funds received under the American Rescue Plan Act (ARPA) for pandemic recovery. The bill requires the state treasurer to move specific amounts of these funds between different accounts within the state budget, ensuring that any unspent ARPA money reverts back to a central fund by December 1, 2024. This allows the governor to redirect these funds to other departments as needed. The bill also adjusts how much general funding is provided to various state departments like corrections and human services, reducing their need for regular budget allocations with the use of ARPA money. It was signed into law by the Governor on June 5, 2024, and took effect immediately on that date.

Official Summary

The state received money from the federal coronavirus state fiscal recovery fund pursuant to the "American Rescue Plan Act of 2021" (ARPA money). ARPA money was deposited into the "American Rescue Plan Act of 2021" cash fund and then transferred to various cash funds (recipient funds) and appropriated for various programs. The act requires the state treasurer to transfer specified amounts of ARPA money from specified recipient funds at the close of the 2023-24 state fiscal year to the "American Rescue Plan Act of 2021" cash fund. The act requires the state treasurer to transfer money from the general fund to a new ARPA refinance state money cash fund. Money in the new ARPA refinance state money cash fund is transferred to the specified recipient funds. The act requires the general assembly to appropriate ARPA money from the "American Rescue Plan Act of 2021" cash fund to state departments for personal services in fiscal year 2023-24. For fiscal year 2024-25, the general assembly shall appropriate the balance of the cash fund for personal services or for other purposes permitted under the "American Rescue Plan Act of 2021", and that money must be expended on or before January 31, 2025. On December 1, 2024, any unspent and unobligated ARPA money in a recipient fund, other than money designated for personal services or operating costs that will be spent by January 31, 2025, reverts to the "American Rescue Plan Act of 2021" cash fund. The reverted money is continuously appropriated to any department designated by the governor for any purpose that was funded with general fund money in the general appropriations act for fiscal year 2024-25. After December 31, 2024, any ARPA money in a recipient fund that was obligated as of December 31, 2024, but not expended on an eligible activity at the conclusion of the appropriation reverts to the "American Rescue Plan Act of 2021" cash fund and is continuously appropriated to any department designated by the governor for any purpose for which a general fund appropriation was made in the general appropriation act for the state fiscal year in which the reversion occurred. The amount of general fund money appropriated in a line item in a general appropriations act is reduced by the amount of ARPA money appropriated pursuant to the act's provisions that is spent for the line item. The act repeals the requirement for a subrecipient to obligate ARPA money by November 30, 2024. The act authorizes the state controller to take certain measures to implement the act and ensure that ARPA money is expended within the time allowed by federal law. The governor and the state controller shall jointly submit a report to the joint budget committee, the speaker of the house of representatives, the minority leader of the house of representatives, the president of the senate, and the minority leader of the senate about the transfers in the act and about spending ARPA money. The act makes changes to various programs related to refinancing ARPA money, including clarifying spending and obligation deadlines for program money that is not ARPA money and exempting the use of state money from requirements for capital construction projects that use federal money. For the 2023-24 state fiscal year, the act makes the following appropriations from the "American Rescue Plan Act of 2021" cash fund for personal services: $495 million to the department of corrections, $214 million to the department of human services, and $309 million to the judicial department. The total general fund appropriation made in the annual general appropriation act for the 2023-24 state fiscal year to each department is reduced by the same amount. For the 2024-25 state fiscal year, the act makes the following appropriations from the "American Rescue Plan Act of 2021" cash fund for personal services: $324 million to the department of corrections, $63,182,048 to the department of human services, and $200 million to the judicial department. The total general fund appropriation made in the annual general appropriation act for the 2024-25 state fiscal year to each department is reduced by the same amount. The act changes the source of funds for existing appropriations involving refinanced ARPA money. APPROVED by Governor June 5, 2024 EFFECTIVE June 5, 2024(Note: This summary applies to this bill as enacted.)

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