SB 25-180

Senate Bill 25-180, also known as the Population Growth Calculation bill, changes how Colorado calculates its population growth for budget purposes. Currently, the state uses a method that can inaccurately measure population change due to adjustments made by the federal census bureau after initial estimates are released. The new bill updates this process so that it more accurately reflects actual population growth without double-counting or under-counting people. This affects how much the state can spend each year based on its budget rules. Since the bill has been signed, these changes will now be implemented to ensure a fair and accurate calculation of population growth for future budgets.

Official Summary

Section 20 of article X of the state constitution (TABOR) requires the maximum annual percentage change in state fiscal year spending to equal inflation plus the percentage change in state population in the prior calendar year adjusted for revenue changes approved by voters. Although TABOR does not specify how the state shall determine the percentage change in state population (population growth), the TABOR implementing statutes do. For years in which there is not a decennial census, the TABOR implementing statutes required the state to calculate population growth by determining the percentage change between: The federal census bureau's estimate of state population (census estimate) for the previous calendar year, as of December in the current calendar year; and The census estimate for the current calendar year, as of December in the current calendar year. This method for calculating population growth can lead to either double-counting or under-counting of population changes in census estimates. If the federal census bureau revises a census estimate upward for a given year, population growth will be understated and the fiscal year spending limit will be lower. The opposite is true if the federal census bureau revises a census estimate downward. In either case, under this method for calculating population growth, population growth would be measured inaccurately. The act adjusts the method of calculating population growth. Under the act, population growth is calculated by determining the percentage change between: The census estimate, as of December in the previous calendar year, for the previous calendar year; and The census estimate, as of December in the current calendar year, for the current calendar year. This approach prevents double-counting or under-counting population changes as a result of revised census estimates and results in a more accurate measurement of population growth. (Note: This summary applies to this bill as enacted.)

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