As used in this article 77, unless the context otherwise requires:
(1) (a) Collections for another government means any revenue that is collected by the state for the benefit and use of another government other than the state and passed through to that government other than the state for the benefit of and use by that government.
(b) For state fiscal years commencing on or after July 1, 2023, notwithstanding the definition of collections for another government in subsection (1)(a) of this section, the only revenues collected by the state for the benefit and use of another government other than the state and passed through to that government other than the state for the benefit of and use by that government that qualify as collections for another government without further identification by the general assembly are revenues collected pursuant to:
(I) The authority of the government for whose benefit the state collects the revenue;
(II) The authority of the state and apportioned to another government in connection with that government forgoing the imposition of certain taxes and collecting the corresponding tax revenue; or
(III) A constitutional requirement that the state collect the revenue for the benefit of another government.
(c) Collections for another government, with respect to revenue that is collected in accordance with subsection (1)(b)(II) of this section, includes the revenue from the gross state cigarette tax, as defined in section 39-22-623 (1)(a)(II)(A), collected by the state pursuant to article 28 of title 39, and passed through by direct distribution to any government other than the state pursuant to sections 24-22-118 and 39-22-623.
(d) Collections for another government, with respect to revenue that is collected in accordance with subsection (1)(b)(III) of this section, includes the limited gaming tax revenues that are collected by the state pursuant to section 9 (5)(a) of article XVIII of the state constitution and section 44-30-601 and passed through by direct distribution only, and not through grants, to any government other than the state pursuant to section 9 (5)(b)(II) and (5)(b)(III) of article XVIII of the state constitution and sections 44-30-701 (1)(d)(II) to (1)(d)(IV), 44-30-1201 (1), and 44-30-1202.
(2) Damage award means any pecuniary compensation received by the state as a result of:
(a) Any judgment or allowance in favor of the state; and
(b) For state fiscal years commencing on or after July 1, 2024:
(I) A civil monetary penalty assessed by the department of health care policy and financing pursuant to section 25.5-6-205;
(II) A civil monetary penalty imposed by the division of administration of the department of public health and environment pursuant to section 25-8-608;
(III) A monetary penalty imposed by the energy and carbon management commission pursuant to section 34-60-121 (1);
(IV) A monetary fine or penalty collected by the division of administration of the department of public health and environment pursuant to section 25-7-115, 25-7-122, or 25-7-123 and deposited in the community impact cash fund created in section 25-7-129 or in the motor vehicle emissions assistance fund created in section 25-7-129.5; and
(V) A monetary penalty collected by the division of labor standards and statistics of the department of labor and pursuant to section 8-1-114.
(3) Enterprise means a government-owned business:
(a) Which has authority to issue its own revenue bonds; and
(b) Which receives less than ten percent of its annual revenues in grants from all state and local governments in Colorado combined.
(4) Expenditure means the appropriation or disbursement of any state general fund or cash fund moneys for any expense incurred by the state.
(5) Federal funds means any pecuniary resources received by the state from the national government of the United States.
(6) Gift means something of value which is given to the state voluntarily by any person or entity, regardless of whether such person or entity specifies the purpose or purposes for which such thing of value is to be used. Gift includes, but is not limited to, voluntary contributions received by the state as a result of any state voluntary contribution program established pursuant to article 22 of title 39, C.R.S. Gift does not include federal funds or any pecuniary compensation received by the state from any other governmental entity.
(7) (a) Grant means any direct cash subsidy or other direct contribution of money from the state or any local government in Colorado which is not required to be repaid.
(b) Grant does not include:
(I) Any indirect benefit conferred upon an enterprise from the state or any local government in Colorado;
(II) Any revenues resulting from rates, fees, assessments, or other charges imposed by an enterprise for the provision of goods or services by such enterprise;
(III) Any federal funds, regardless of whether such federal funds pass through the state or any local government in Colorado prior to receipt by an enterprise;
(IV) Any moneys received by the division of parks and wildlife, created in section 33-9-104, from the great outdoors Colorado trust fund established in section 2 of article XXVII of the state constitution;
(V) Any revenues received by the division of brand inspection created in section 24-1-123 (4)(g)(I).
(8) Inflation means the percentage change in the consumer price index for the Denver-Boulder consolidated metropolitan statistical area for all urban consumers, all goods, as published by the United States department of labor, bureau of labor statistics, or its successor index.
(9) Pension contributions by employees means the amount contributed by state employees to the retirement plans of such employees.
(10) Pension fund earnings means the amount which is earned from the investment of moneys set apart for the payment of retirement income for state employees.
(11) Property sale means:
(a) (Deleted by amendment, L. 2025.)
(b) Any contract resulting in the payment of pecuniary compensation to the state for permitting another to exploit, use, or market nonrenewable natural resources which are located on real property owned by the state and which are subject to depletion with use; or
(c) For state fiscal years commencing on or after July 1, 2024, a transfer of rights in tangible or intangible property, excluding leasehold interests, in which or to which the state has rights protected by law from the state to any party for consideration. Such a transfer of rights includes:
(I) Merchandise sales at the History Colorado Center;
(II) Merchandise sales at state historical society museums other than the History Colorado Center;
(III) Sales of supplies related to agricultural inspections;
(IV) Sales of supplies related to wildfire equipment repair;
(V) Sales of supplies related to pesticide inspections;
(VI) Sales related to the correctional education program established in section 17-32-105;
(VII) Sales related to the business enterprise program created in part 2 of article 84 of title 8;
(VIII) Non-concession sales at the Colorado state fair; and
(IX) The sale of wine for promotional purposes by the Colorado wine industry development board, created in article 29.5 of title 35.
(12) Reserve means any unrestricted general fund or cash fund year-end balance which is held by the state to meet any needs or demands.
(13) Reserve increase means any action which has the effect of increasing a reserve.
(14) Reserve transfers or expenditures means moneys which are passed from one fund of cash or assets held by the state as a reserve to another such fund or moneys which are disbursed from such fund.
(15) (a) Special purpose authority means any entity that is created pursuant to state law to serve a valid public purpose, which is either a political subdivision of the state or an instrumentality of the state, which is not an agency of the state, and which is not subject to administrative direction by any department, commission, bureau, or agency of the state.
(b) Special purpose authority includes, but is not limited to:
(I) The Colorado housing and finance authority created pursuant to section 29-4-704, C.R.S.;
(II) The university of Colorado hospital authority created pursuant to section 23-21-503 (1), C.R.S.;
(III) The Colorado water resources and power development authority created pursuant to section 37-95-104 (1), C.R.S.;
(IV) Pinnacol Assurance created pursuant to section 8-45-101, C.R.S.;
(V) The Colorado educational and cultural facilities authority created pursuant to section 23-15-104 (1), C.R.S.;
(VI) The Colorado health facilities authority created pursuant to section 25-25-104 (1), C.R.S.;
(VII) (Deleted by amendment, L. 2000, p. 1296, � 19, effective May 26, 2000.)
(VIII) The Colorado agricultural development authority created pursuant to section 35-75-104 (1), C.R.S.;
(IX) The public employees' retirement association created pursuant to section 24-51-201 (1);
(X) The Denver health and hospital authority created pursuant to section 25-29-103 (1), C.R.S.;
(XI) The Pueblo depot activity development authority created pursuant to section 29-23-104, C.R.S.;
(XII) and (XIII) Repealed.
(XIV) The venture capital authority created in section 24-46-202;
(XV) The statewide internet portal authority created pursuant to section 24-37.7-102, C.R.S.;
(XVI) Repealed.
(XVII) The Colorado channel authority created pursuant to article 49.9 of this title;
(XVIII) Repealed.
(XIX) The Colorado electric transmission authority created in section 40-42-103 (1);
(XX) The middle-income housing authority created in section 29-4-1104 (1);
(XXI) The equal justice authority created in section 13-5.7-202; and
(XXII) The building urgent infrastructure and leveraging dollars authority created in section 24-117-104 (1).
(16) (a) State means the central civil government of the state of Colorado, which shall consist of the following:
(I) The legislative, executive, and judicial branches of government established by article III of the state constitution;
(II) All organs of the branches of government specified in subparagraph (I) of paragraph (a) of this subsection (16), including the departments of the executive branch; the legislative houses and agencies; and the appellate and trial courts and court personnel; and
(III) State institutions of higher education.
(b) State does not include:
(I) Any enterprise;
(I.5) An institution or group of institutions of higher education that has been designated as an enterprise pursuant to section 23-5-101.7, C.R.S.;
(I.6) An institution or group of institutions of higher education that has been designated as an enterprise pursuant to section 23-5-101.8, C.R.S.;
(II) Any special purpose authority;
(III) Any organization declared to be a joint governmental entity under section 2-3-311 (2), C.R.S.
(17) (a) State fiscal year spending means all state expenditures and reserve increases occurring during any given fiscal year as established by section 24-30-204, including, but not limited to, state expenditures or reserve increases from:
(I) Moneys received by the state from enterprises; and
(II) Cash funds of state institutions of higher education. For purposes of this subparagraph (II), cash funds means funds received from tuition income, fees, indirect cost recoveries, and other sources of funds that can be appropriated as cash funds from state institutions of higher education, excepting those funds derived from gifts, federal funds, or other sources for which any expenditure or reserve increase is not subject to the provisions of section 20 of article X of the state constitution.
(III) and (IV) (Deleted by amendment, L. 2000, p. 2044, � 6, effective December 28, 2000.)
(b) State fiscal year spending does not include reserve transfers or expenditures or any state expenditures or reserve increases:
(I) For refunds of excess state revenues made in the current fiscal year or in the subsequent fiscal year;
(II) From gifts, including any interest earned thereon;
(III) From federal funds, including any interest earned thereon;
(IV) From collections for another government;
(V) From pension contributions by employees;
(VI) From pension fund earnings;
(VII) From damage awards, including any interest earned thereon;
(VIII) From property sales, including any interest earned on proceeds therefrom; and
(IX) From net proceeds from state-supervised lottery games, as defined in section 3 (1) of article XXVII of the state constitution.
Source: L. 93: Entire article added, p. 1496, � 1, effective June 6. L. 94: (15)(b)(X) added, p. 671, � 3, effective April 19; (15)(b)(XI) added, p. 964, � 2, effective April 28. L. 98: (15)(b)(V) amended, p. 609, � 17, effective May 4. L. 99: (1) amended, p. 1235, � 1, effective August 4. L. 2000: (15)(b)(VII) amended, p. 1296, � 19, effective May 26; (16)(b)(III) added, p. 1674, � 2, effective June 1. Referred 2000: (17)(a) and (17)(b)(IX) amended, p. 2044, � 6, effective upon proclamation of the governor, December 28, 2000. L. 2001: (7)(b)(IV) added, p. 204, � 3, effective July 1; (15)(b)(XII) added, p. 1048, � 29, effective July 1. L. 2002: (15)(a) and (15)(b)(IV) amended, p. 1896, � 67, effective July 1. L. 2003: (15)(b)(XIII) added, p. 2551, � 10, effective June 5. L. 2004: (15)(b)(XIV) added, p. 28, � 7, effective March 4; (15)(b)(XV) added, p. 1673, � 2, effective June 3; (7)(b)(V) added, p. 645, � 3, effective July 1; (16)(b)(I.5) added, p. 722, � 12, effective July 1; (16)(b)(I.6) added, p. 1936, � 7, effective July 1. L. 2007: (15)(b)(XVI) added, p. 1172, � 2, effective May 23. L. 2008: (17)(a)(II) amended, p. 119, � 8, effective March 19. L. 2009: (15)(b)(XVII) added, (HB 09-1307), ch. 283, p. 1291, � 2, effective August 5. L. 2011: (7)(b)(IV) amended, (SB 11-208), ch. 293, p. 1383, � 5, effective July 1. L. 2012: (15)(b)(XVIII) added, (HB12-1224), ch. 168, p. 591, � 3, effective May 9; (15)(b)(XVI) repealed, (HB12-1315), ch. 224, p. 974, � 33, effective July 1. L. 2013: (15)(b)(XII) amended, (HB 13-1115), ch. 338, p. 1973, � 15, effective May 28. L. 2014: (15)(b)(XVIII) repealed, (SB 14-127), ch. 386, p. 1929, � 5, effective June 6. L. 2021: IP amended and (15)(b)(XIX) added, (SB 21-072), ch. 329, p. 2127, � 7, effective June 24. L. 2022: (15)(b)(XX) added, (SB 22-232), ch. 354, p. 2516, � 1, effective June 3. L. 2024: (1) amended, (HB 24-1469), ch. 359, p. 2440, � 2, effective June 3; (15)(b)(XIX) and (15)(b)(XX) amended and (15)(b)(XXI) added, (HB 24-1286), ch. 339, p. 2298, � 6, effective June 3. L. 2025: (2) and (11) amended, (SB 25-173), ch. 422, p. 2405, � 2, effective June 4; (2)(b)(IV) amended, (SB 25-321), ch. 387, p. 2179, � 9, effective June 4; (15)(b)(XX) and (15)(b)(XXI) amended and (15)(b)(XXII) added, (SB 25-081), ch. 320, p. 1690, � 4, effective August 6.
Editor's note: (1) Subsections (17)(a) and (17)(b)(IX) were amended by Senate Bill 00-084. That bill contained a referendum clause and was approved by a vote of the registered electors of the state of Colorado on November 7, 2000. Subsections (17)(a) and (17)(b)(IX) were effective upon the proclamation of the governor, December 28, 2000. The vote count for the measure was as follows:
FOR: 836,390
AGAINST: 783,275
(2) Subsection (15)(b)(XIII)(B) provided for the repeal of subsection (15)(b)(XIII), effective December 15, 2003, unless the state treasurer and the tobacco litigation settlement financing corporation entered into at least one property sale contract pursuant to article 82.5 of this title. No such contract had been entered into as of December 15, 2003. (See L. 2003, p. 2551.)
(3) Subsection (16)(b)(I.6) was originally numbered as (16)(b)(I.5) in Senate Bill 04-252 but has been renumbered on revision for ease of location.
(4) Subsection (15)(b)(XII)(B) provided for the repeal of subsection (15)(b)(XII), effective March 31, 2015. (See L. 2013, p. 1973.)
(5) Section 10 of chapter 387 (SB 25-321), Session Laws of Colorado 2025, provides that the act changing this section takes effect only if SB 25-173 becomes law and takes effect either upon the effective date of SB 25-321 or SB 25-173, whichever is later. SB 25-173 became law and both bills took effect June 4, 2025.
Cross references: (1) For the legislative declaration contained in the 2004 act enacting subsection (15)(b)(XIV), see section 1 of chapter 11, Session Laws of Colorado 2004.
(2) For the legislative declaration contained in the 2004 act enacting subsection (16)(b)(I.5), see section 1 of chapter 215, Session Laws of Colorado 2004.
(3) For the legislative declaration contained in the 2004 act enacting subsection (16)(b)(I.6), see section 1 of chapter 391, Session Laws of Colorado 2004.
(4) For the legislative declaration in SB 14-127, see section 1 of chapter 386, Session Laws of Colorado 2014.
(5) For the legislative declaration in HB 24-1469, see section 1 of chapter 359, Session Laws of Colorado 2024. For the legislative declaration in HB 24-1286, see section 1 of chapter 339, Session Laws of Colorado 2024.
(6) For the legislative declaration in SB 25-173, see section 1 of chapter 422, Session Laws of Colorado 2025.
24-77-103. Limitation on state fiscal year spending - legislative declaration - report. (1) For fiscal year 1993-94 and each fiscal year thereafter, state fiscal year spending shall not exceed an amount equal to:
(a) State fiscal year spending for the previous fiscal year as may be adjusted pursuant to the provisions of section 24-77-103.5; as modified by
(b) An amount equal to a percentage calculated pursuant to subsection (2) of this section times the state fiscal year spending for the previous fiscal year, as adjusted for qualification and disqualification of enterprises, as adjusted pursuant to the provisions of subsection (2.3) of this section, and as reduced by an amount equal to:
(I) Annual debt service changes; and
(II) Refunds made pursuant to section 20 (1) and (3)(c) of article X of the state constitution; and
(III) The amount of any revenues resulting from approval by a majority of the registered electors of the state voting on the issue at a statewide election held after 1991; as modified by
(c) To the extent not otherwise included in state fiscal year spending for the previous fiscal year, an amount equal to:
(I) Annual debt service changes; and
(II) Refunds made pursuant to section 20 (1) and (3)(c) of article X of the state constitution; and
(III) An amount of any revenues resulting from approval by a majority of the registered electors of the state voting on the issue at a statewide election held after 1991.
(2) (a) (I) For purposes of paragraph (b) of subsection (1) of this section, and in accordance with section 20 (7)(a) of article X of the state constitution, the percentage of allowable increase in state fiscal year spending shall equal the sum of inflation as modified by the percentage change in state population in the prior calendar year.
(II) The general assembly hereby finds and declares that:
(A) Section 20 (7)(a) of article X of the state constitution 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.
(B) It is the considered judgment of the general assembly that the inclusion of inflation and the percentage change in state population in the prior calendar year when calculating the maximum annual percentage change in state fiscal year spending is designed to allow state fiscal year spending to increase to the extent necessary, but only to the extent necessary, to ensure that state population growth and inflation, which are factors beyond the direct control of state government, do not unduly affect the ability of the state to fund transportation projects and other projects and services needed to meet the demands of a growing population.
(III) The general assembly further finds and declares that:
(A) For the purpose of determining the maximum percentage change in state fiscal year spending for any given fiscal year, section 20 (7)(a) of article X of the state constitution requires the state to annually determine population by annual federal census estimates and to further adjust the population determined every decade to match the decennial federal census.
(B) Section 20 (7)(a) of article X of the state constitution does not specify how adjustments to population to match the decennial federal census are to be made and it is therefore within the legislative prerogative to determine the manner in which such adjustments are to be made.
(C) The results of the 2000 federal census indicate that the annual federal census estimates used to determine population for the purpose of determining the maximum annual percentage change in state fiscal year spending in the fiscal years prior to the 2001-02 fiscal year underestimated population growth in the state, which caused a cumulative reduction in the maximum annual percentage change in state fiscal year spending during the prior fiscal years, resulted in over-refunds of state revenues during the prior fiscal years, and impaired the state's ability to fund transportation projects and other projects and services needed to meet the demands of the state's growing population.
(D) It is consistent with the purposes of section 20 (7)(a) of article X of the state constitution for the general assembly to enact legislation that will ensure that the state can recoup state revenues lost because the underestimates of population growth in the state in the fiscal years prior to the 2001-02 fiscal year resulted in over-refunds of state revenues and that the state can also recoup state revenues lost in the future due to over-refunds resulting from future underestimates of population growth.
(E) The mechanism for allowing the adjustment of population every decade to match the federal census to occur over more than one fiscal year when the actual amount of state fiscal year spending for the first fiscal year in which such an adjustment can be made is insufficient to allow the state to recoup the full amount of all over-refunds resulting from underestimates of population growth that is set forth in subparagraph (II.5) of paragraph (b) of this subsection (2), is reasonable, necessary, in the best interests of the state, and consistent with the requirements and objectives of section 20 (7)(a) of article X of the state constitution.
(IV) The general assembly further finds and declares that:
(A) For the purpose of determining the maximum percentage change in state fiscal year spending for any given fiscal year, section 20 (7)(a) of article X of the state constitution requires the state to annually determine the change in state population from one calendar year to the next with the use of annual federal census bureau state population estimates;
(B) The approach for determining the change in state population for state fiscal years commencing before July 1, 2024, resulted in both double-counting and under-counting of population as a result of revised federal census bureau state population estimates;
(C) Double-counting population for purposes of determining the change in state population results in an increased limit on state fiscal year spending and under-counting population for purposes of determining the change in state population results in a reduced limit on state fiscal year spending;
(D) From state fiscal year 2015-16 through state fiscal year 2024-25, excluding the fiscal year impacted by the decennial census, as a result of revised federal census bureau estimates of state population, there were three fiscal years with significant double-counting, two fiscal years with significant under-counting, and four fiscal years with neither significant double-counting nor under-counting;
(E) Section 20 (7)(a) of article X of the state constitution does not specify how the state shall annually determine the change in state population by annual federal census estimates;
(F) In both House Bill 02-1310 and Senate Bill 02-179, enacted in 2002, the general assembly modified how the change in state population is calculated for purposes of section 20 (7)(a) of article X of the state constitution, and these bills are presumed to be constitutional; and
(G) Therefore, it is within the general assembly's plenary power and consistent with section 20 (7)(a) of article X of the state constitution for the general assembly to enact legislation that modifies how population growth is calculated for purposes of section 20 (7)(a) of article X of the state constitution to mitigate both population double-counting and population under-counting.
(b) (I) Except as otherwise provided in subsections (2)(b)(II) and (2)(b)(II.5) of this section, for state fiscal years commencing before July 1, 2024, the percentage change in state population for any given calendar year is the percentage change between the estimate of state population due to be issued by the United States bureau of census in December of such calendar year with a reference date of July 1 of the same calendar year and the estimate of state population due to be issued by the United States bureau of census in December of the same calendar year with a reference date of July 1 of the immediately preceding calendar year.
(I.5) For state fiscal years commencing on or after July 1, 2024, the percentage change in state population for any given calendar year is the percentage change between the estimate of state population issued by the United States bureau of census in December of the calendar year with a reference date of July 1 of the same calendar year and the estimate of state population issued by the United States bureau of census in December of the immediately preceding calendar year with a reference date of July 1 of the immediately preceding calendar year.
(II) Except as otherwise provided in subsection (2)(b)(II.5) of this section, for any calendar year for which an estimate of state population is not issued due to the federal census of the United States bureau of census, the percentage change in state population for such calendar year is the percentage change between the state population as reported in the federal census conducted by the United States bureau of census due in December of such calendar year and the estimate of state population issued by the United States bureau of census in December of the immediately preceding calendar year with a reference date of July 1 of the immediately preceding calendar year.
(II.5) (A) If the limitation on state fiscal year spending for a given fiscal year is calculated with a percentage of allowable increase in state fiscal year spending that includes a percentage change in state population determined in accordance with subparagraph (II) of this paragraph (b) and the limitation on state fiscal year spending exceeds the actual amount of state fiscal year spending for that fiscal year, the percentage change in state population shall be reduced so that the limitation on state fiscal year spending for that fiscal year calculated with a percentage of allowable increase in state fiscal year spending that includes such reduced percentage change in state population equals the amount of state fiscal year spending for that fiscal year.
(B) The difference between the percentage change in state population determined in accordance with subsection (2)(b)(II) of this section and the reduced percentage change in state population used to calculate the limitation on state fiscal year spending pursuant to subsection (2)(b)(II.5)(A) of this section is carried forward as an adjustment of the percentage change in state population determined pursuant to subsection (2)(b)(I) or (2)(b)(I.5) of this section for a maximum period of nine fiscal years. If the amount of state fiscal year spending for the immediately subsequent fiscal year exceeds the limitation on state fiscal year spending for that fiscal year, the unused adjustment is added first to the percentage change in state population determined pursuant to subsection (2)(b)(I) or (2)(b)(I.5) of this section that is included in the percentage of the allowable increase in state fiscal year spending used in calculating the limitation on state fiscal year spending for that fiscal year to the greatest extent possible without causing the limitation on state fiscal year spending to exceed the actual amount of state fiscal year spending for that fiscal year.
(C) Any remaining portion of the unused adjustment shall continue to be added, to the greatest extent possible, to the percentage change in state population determined pursuant to subsection (2)(b)(I) or (2)(b)(I.5) of this section that is included in the percentage of allowable increase in state fiscal year spending used in calculating the limitation on state fiscal year spending for subsequent fiscal years without causing the limitation on state fiscal year spending for a given fiscal year to exceed the actual amount of state fiscal year spending for that fiscal year.
(D) Any portion of the unused adjustment that remains unused after the expiration of the maximum period of nine fiscal years shall not be included in the percentage of allowable increase in state fiscal year spending used in calculating the limitation on state fiscal year spending for any fiscal year subsequent to the expiration of such period.
(III) The department of local affairs shall notify the president of the senate, the speaker of the house of representatives, the governor, and the chairman of the joint budget committee of the general assembly of the percentage change in state population calculated pursuant to this paragraph (b) no later than January 15 following the calendar year for which such percentage is calculated. Such percentage shall not be subject to later modification based upon any subsequent revision of census counts or population estimates issued by the United States bureau of the census.
(2.3) (a) The general assembly hereby finds and declares that section 20 of article X of the state constitution fails to provide guidance as to how the absorption of an existing local government district by the state is to be treated for purposes of compliance with said constitutional provision. The general assembly further finds and declares that it is not reasonable for state fiscal year spending to remain at the same level, with an accompanying reduction in revenues available to fund other state services, in order that the state may absorb local government districts that provide higher education services. The general assembly further finds and declares that the method of absorbing local government districts that provide higher education services by the state for purposes of compliance with section 20 of article X of the state constitution embodied in this subsection (2.3) reasonably restrains most the growth of government since government as a whole has not grown while preserving essential state services.
(b) For purposes of paragraph (b) of subsection (1) of this section, when any local government district that provides higher education services joins the state, the amount of state fiscal year spending allowable for the fiscal year in which such joinder takes effect shall be adjusted by the amount of fiscal year spending of such local government district that provides higher education services in accordance with section 20 of article X of the state constitution in the current fiscal year.
(3) The base for the calculation of state reserve increases for fiscal year 1992-93 shall be the state unrestricted year-end fund balances of the state general fund and of all state cash funds for fiscal year 1991-92. For purposes of this section, the amount of said state unrestricted year-end fund balances does not constitute and shall not be included in state fiscal year spending for fiscal year 1992-93.
(4) For purposes of complying with the limitation on state fiscal year spending set forth in subsection (1) of this section, the state may refuse to accept any moneys, in whole or in part, from any enterprise in any given fiscal year, notwithstanding any law to the contrary.
(5) For purposes of complying with the limitation on state fiscal year spending set forth in subsection (1) of this section, the state may refuse to accept any gift, including but not limited to real property, for which state expenditures would be required for the maintenance and operation of such gift and which does not include sufficient revenues for said purposes.
(6) (a) For purposes of complying with the limitation on state fiscal year spending set forth in subsection (1) of this section, any moneys continuously appropriated by a permanent statute or constitutional provision shall be included in the general appropriation bill for informational purposes.
(b) The authority to expend such moneys shall be modified only by duly enacted amendment to the permanent statute or constitutional provision which continuously appropriates such moneys.
(c) Except as otherwise provided in this paragraph (c), any moneys continuously appropriated by a permanent statute or constitutional provision shall be subject to revenue and expenditure limits established annually by the general assembly as provided by law for the purpose of complying with the limitation on state fiscal year spending set forth in subsection (1) of this section. The provisions of this paragraph (c) shall not apply to moneys continuously appropriated to the limited gaming control commission pursuant to section 9 of article XVIII of the state constitution.
(7) For purposes of complying with the limitation on state fiscal year spending set forth in subsection (1) of this section, and notwithstanding section 24-1-136 (11)(a)(I), each state institution of higher education shall prepare a written report for each quarter of the fiscal year, which shall include the total amount of net revenues generated during such period from any facility, activity, or operation managed by such state institution of higher education that is an enterprise and the total amount of such net revenues and any other thing of value received by such state institution of higher education from such enterprises. The report shall be filed with the president of the senate, the speaker of the house of representatives, and the chair of the joint budget committee no later than thirty days after the close of such period.
Source: L. 93: Entire article added, p. 1500, � 1, effective June 6. L. 99: (1)(a) and IP(1)(b) amended and (2.3) added, p. 1235, � 2, effective August 4. L. 2002: (2) amended, p. 730, � 2, effective August 7; (2) amended, p. 710, � 2, effective August 7. L. 2017: (7) amended, (HB 17-1251), ch. 253, p. 1061, � 16, effective August 9. L. 2025: (2)(a)(IV) and (2)(b)(I.5) added and (2)(b)(I), (2)(b)(II), (2)(b)(II.5)(B) and (2)(b)(II.5)(C) amended, (SB 25-180), ch. 41, p. 192, � 1, effective March 31.
24-77-103.5. Legislative declaration - correction of errors - authority of the controller and auditor. (1) The general assembly finds and declares that ascertaining compliance with the provisions of section 20 of article X of the state constitution requires that accurate calculations be made of state fiscal year spending. The general assembly further finds and declares that it is reasonable to account for any errors in calculating state fiscal year spending by authorizing the controller to make equivalent adjustments in state fiscal year spending for the fiscal year in which such errors are discovered in accordance with the provisions of this subsection (1).
(2) For purposes of section 24-77-103, for any given fiscal year, if the controller discovers an error involving a prior fiscal year by whatever means available affecting the calculation of state fiscal year spending, the controller may correct such error by increasing or decreasing in an appropriate amount the allowable state fiscal year spending for the fiscal year in which such error is discovered, subject to a review of such adjustment by the state auditor.
Source: L. 99: Entire section added, p. 1236, � 3, effective August 4.
24-77-103.6. Retention of excess state revenues - general fund exempt account - required uses - excess state revenues legislative report - definitions. (1) (a) Notwithstanding any provision of law to the contrary, for each fiscal year commencing on or after July 1, 2005, but before July 1, 2010, the state shall be authorized to retain and spend all state revenues in excess of the limitation on state fiscal year spending.
(b) Notwithstanding any provision of law to the contrary, for each fiscal year commencing on or after July 1, 2010, the state shall be authorized to retain and spend all state revenues that are in excess of the limitation on state fiscal year spending, but less than the excess state revenues cap for the given fiscal year.
(2) There is hereby created in the general fund the general fund exempt account, which consists of an amount of money equal to the amount of state revenues in excess of the limitation on state fiscal year spending that the state retains for a given fiscal year pursuant to this section, except as otherwise provided in subsection (2.5) of this section. The general assembly shall appropriate or transfer the money in the account for the following purposes:
(a) To fund health care;
(b) To fund education, including any capital construction projects related thereto;
(c) To fund retirement plans for firefighters and police officers, so long as the general assembly determines that such funding is necessary; and
(d) To pay for strategic transportation projects included in the department of transportation's strategic transportation project investment program.
(2.5) (a) If the amount of money that, based on revenue estimates, was appropriated or transferred from the account for a state fiscal year commencing on or after July 1, 2020, is less than the amount of approved excess state revenues, then:
(I) An amount of money in the general fund equal to the unaccounted amount constitutes a portion of the approved excess state revenues for the state fiscal year; and
(II) An amount equal to one-half of the unaccounted amount for the general fund appropriations for both of the following line items are appropriations of the state's approved excess state revenues for the state fiscal year:
(A) The line item for medical and long-term care services for medicaid eligible individuals, or a successor line item, which is an authorized use specified in section 24-77-104.5 (2)(a)(I)(I); and
(B) The state share of districts' total program funding, or a successor line item, which is an authorized use specified in section 24-77-104.5 (3)(a)(I).
(b) If the amount of money that, based on estimates, was appropriated or transferred from the account for a state fiscal year commencing on or after July 1, 2020, is greater than the amount of approved excess state revenues, then an amount of money in the account equal to the overage is not approved excess state revenues for the state fiscal year. The amount of each appropriation or transfer from the account for the fiscal year that constitutes approved excess state revenues is equal to the amount of the appropriation or transfer, reduced in proportion to the overage.
(c) As used in this subsection (2.5), unless the context otherwise requires:
(I) Account means the general fund exempt account created in subsection (2) of this section.
(II) Approved excess state revenues means the state revenues that the state is authorized to retain and spend for a state fiscal year in accordance with the voters' approval of this section at the November 2005 statewide election, as reported by the state controller in the annual financial report required by section 24-77-106.5 (1)(b), or, if the amount changes in the final accounting for the state fiscal year, in the comprehensive annual financial report of the state for the state fiscal year.
(III) Overage means the amount by which the amount of money appropriated or transferred from the account for a state fiscal year exceeds the approved excess state revenues for the state fiscal year.
(IV) Unaccounted amount means the amount by which the approved excess state revenues for a state fiscal year exceed the amount of money appropriated or transferred from the account for the state fiscal year.
(3) The statutory limitation on general fund appropriations set forth in section 24-75-201.1 (1)(a), and the exceptions or exclusions thereto, shall apply to the moneys in the general fund exempt account.
(4) The approval of this section by the registered electors of the state voting on the issue at the November 2005 statewide election constitutes a voter-approved revenue change to allow the retention and expenditure of state revenues in excess of the limitation on state fiscal year spending.
(5) (a) For each fiscal year that the state retains and spends state revenues in excess of the limitation on state fiscal year spending pursuant to this section, the director of research of the legislative council shall prepare an excess state revenues legislative report that includes the following information:
(I) The amount of excess state revenues that the state retained; and
(II) A description of how the excess state revenues were expended.
(b) The report required by this subsection (5) shall be completed by October 15 following a fiscal year that the state retains and spends revenues in excess of the limitation on state fiscal year spending pursuant to this section and may be amended thereafter as necessary. The director of research shall publish and link to the official website of the general assembly a copy of the report.
(6) As used in this section:
(a) Education means:
(I) Public elementary and high school education; and
(II) Higher education.
(b) (I) Excess state revenues cap for a given fiscal year means:
(A) (Deleted by amendment, L. 2017.)
(B) For each fiscal year up to and including the 2016-17 fiscal year, an amount that is equal to the highest total state revenues for a fiscal year from the period of the 2005-06 fiscal year through the 2009-10 fiscal year, adjusted each subsequent fiscal year for inflation, the percentage change in state population, the qualification or disqualification of enterprises, and debt service changes;
(C) For the 2017-18 fiscal year, an amount that is equal to the excess state revenues cap for the 2016-17 fiscal year calculated pursuant to subsection (6)(b)(I)(B) of this section, adjusted for inflation, the percentage change in state population, the qualification or disqualification of enterprises, and debt service changes, less two hundred million dollars;
(D) For the 2018-19 fiscal year, the amount of the excess state revenues cap for the 2017-18 fiscal year calculated pursuant to subsection (6)(b)(I)(C) of this section, adjusted for inflation, the percentage change in state population, the qualification or disqualification of enterprises, and debt service changes;
(E) For the 2019-20 fiscal year, the amount of the excess state revenues cap for the 2018-19 fiscal year calculated pursuant to subsection (6)(b)(I)(D) of this section, adjusted for inflation, the percentage change in state population, the qualification or disqualification of enterprises, and debt service changes;
(F) For the 2020-21 fiscal year, an amount that is equal to the excess state revenues cap for the 2019-20 fiscal year calculated pursuant to subsection (6)(b)(I)(E) of this section, adjusted for inflation, the percentage change in state population, the qualification or disqualification of enterprises, and debt service changes, plus two hundred twenty-four million nine hundred fifty-seven thousand six hundred two dollars; and
(G) For the 2021-22 fiscal year and each succeeding fiscal year, the amount of the excess state revenues cap for the 2020-21 fiscal year calculated pursuant to subsection (6)(b)(I)(F) of this section, adjusted each subsequent fiscal year for inflation, the percentage change in state population, the qualification or disqualification of enterprises, and debt service changes.
(II) As used in this paragraph (b), inflation and the percentage change in state population shall be the same rates that are used in calculating the maximum annual percentage change in state fiscal year spending pursuant to section 24-77-103, and the qualification or disqualification of an enterprise or debt service changes shall change the excess state revenues cap in the same manner as such change affects the limitation on state fiscal year spending.
(c) State revenues means state revenues not excluded from state fiscal year spending, as defined in section 24-77-102 (17).
Source: Referred 2005: Entire section added, p. 2323, � 1, effective upon proclamation of the governor, December 16, 2005. L. 2009: (3) amended, (SB 09-228), ch. 410, p. 2264, � 16, effective July 1. L. 2017: (6)(b)(I) amended, (SB 17-267), ch. 267, p. 1442, � 11, effective July 1. L. 2021: (6)(b)(I)(C) and (6)(b)(I)(D) amended and (6)(b)(I)(E), (6)(b)(I)(F), and (6)(b)(I)(G) added, (SB 21-260), ch. 250, p. 1384, � 8, effective June 17. L. 2022: IP(2) amended and (2.5) added, (HB 22-1343), ch. 138, p. 924, � 1, effective April 25.
Editor's note: (1) This section was enacted by House Bill 05-1194. That bill contained a referendum clause and was approved by a vote of the registered electors of the state of Colorado on November 1, 2005. This section was effective upon the proclamation of the governor, December 16, 2005. The vote count for the measure was as follows:
FOR: 600,222
AGAINST: 552,662
(2) Section 34 of chapter 267 (SB 17-267), Session Laws of Colorado 2017, provides that the section of the act changing this section does not take effect if the centers for medicare and medicaid services determine that the amendments do not comply with federal law. For more information, see SB 17-267. (L. 2017, p. 1478.) The executive director of the department of health care policy and financing did not notify the revisor of statutes by June 1, 2017, of such determination; therefore, amendments to this section took effect July 1, 2017.
Cross references: (1) For the legislative declaration in SB 17-267, see section 1 of chapter 267, Session Laws of Colorado 2017.
(2) For the legislative declaration in SB 21-260, see section 1 of chapter 250, Session Laws of Colorado 2021.