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ColoradoSB25-2422025 Regular SessionSenate

Division Unemployment Insurance Funding Mechanism

Sponsored By: Emily Sirota (Democratic), Jeff Bridges (Democratic), Judy Amabile (Democratic), Rick Taggart (Republican)

Signed by Governor

Labor & Employment

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 0 costs, 3 mixed.

Colorado shifts funding toward unemployment technology

Colorado renames its Employment and Training Technology Fund as the Unemployment Insurance Program Support Fund. It pays for unemployment administration, technology, staff, and other program-support costs chosen by the Division director. Spending requires yearly legislative approval, and unspent money stays in the fund. Both this fund and the Unemployment Compensation Fund are part of the state’s unemployment insurance enterprise. For fiscal year 2025-26, the law cuts Employment Support Fund spending authority by about $14.57 million. It removes about $10.46 million and 74 full-time-equivalent positions from one unemployment program line. It separately adds about $48.67 million from the Program Support Fund: $8.21 million for administration, $10 million for program costs, and $30.46 million for technology. The technology funding includes 74 full-time-equivalent positions, so the line-item reduction is not a stand-alone loss of 74 positions. Workforce Development Fund spending authority rises by about $6.36 million. These changes do not directly change benefit amounts or eligibility, and Program Support Fund credits do not lower employers’ experience-rated unemployment tax calculations.

Employers’ surcharge dollars get a new split

The law changes how Colorado divides employer support surcharges, without changing the surcharge rate employers pay. Employment Support gets 11%, down from 35%; Unemployment Insurance Program Support gets 54%, up from 32%. Workforce Development gets 20%, up from 14%; Benefit Recovery gets 15%, down from 19%. Benefit Recovery’s share still has a $15 million yearly maximum credit. The new split takes effect immediately.

Fund caps redirect money toward unemployment benefits

Starting at the end of fiscal year 2024-25, Colorado sends surcharge collections above four funds’ caps to the Unemployment Compensation Fund each year. Employment Support’s base cap falls from $7 million to $3.5 million; Program Support’s cap is $25 million. Workforce Development’s cap is $6.8 million, and Benefit Recovery’s cap is $30 million. Each cap changes yearly with state average weekly earnings instead of consumer prices, rounded to the nearest $100. Gifts, grants, and donations do not count toward these caps.

Sponsors & Cosponsors

Sponsors

  • Emily Sirota

    Democratic • House

  • Jeff Bridges

    Democratic • Senate

  • Judy Amabile

    Democratic • Senate

  • Rick Taggart

    Republican • House

Cosponsors

  • Steven Woodrow

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 91 • No: 22

House vote • 4/10/2025

Third reading: Bill

Yes: 43 • No: 18

House vote • 4/8/2025

Refer Senate Bill 25-242 to the Committee of the Whole.

Yes: 8 • No: 3

Senate vote • 4/3/2025

Third reading: Bill

Yes: 34 • No: 0

Senate vote • 4/1/2025

Refer Senate Bill 25-242 to the Committee of the Whole.

Yes: 6 • No: 1

Actions Timeline

  1. Governor Signed

    4/28/2025House

  2. Sent to the Governor

    4/17/2025House

  3. Signed by the President of the Senate

    4/16/2025Senate

  4. Signed by the Speaker of the House

    4/16/2025House

  5. House Third Reading Passed - No Amendments

    4/10/2025House

  6. House Second Reading Special Order - Passed - No Amendments

    4/9/2025House

  7. House Committee on Appropriations Refer Unamended to House Committee of the Whole

    4/8/2025House

  8. Senate Third Reading Passed - No Amendments

    4/3/2025Senate

  9. Introduced In House - Assigned to Appropriations

    4/3/2025House

  10. Senate Second Reading Special Order - Passed - No Amendments

    4/2/2025Senate

  11. Senate Committee on Appropriations Refer Unamended to Senate Committee of the Whole

    4/1/2025Senate

  12. Introduced In Senate - Assigned to Appropriations

    3/31/2025Senate

Bill Text

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