2023 Colorado Revised Statutes › Title 24 - GOVERNMENT - STATE (§§ 24-1-101 — 24-116-102) › STATE FISCAL POLICIES RELATING TO SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION (§§ 24-77-101 — 24-77-204) › Article 77 - State Fiscal Policies Relating to Section 20 of Article X of the State Constitution (§§ 24-77-101 — 24-77-204) › Part 1 - \GENERAL PROVISIONS (§§ 24-77-101 — 24-77-109) › Section 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.
(b)
(I)
Except as otherwise provided in subparagraphs (II) and (II.5) of this paragraph (b), the percentage change in state population for any given calendar year shall be 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.
(II)
Except as otherwise provided in subparagraph (II.5) of this paragraph (b), 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 shall be 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 due to be issued by the United States bureau of census in December of the same 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 subparagraph (II) of this paragraph (b) and the reduced percentage change in state population used to calculate the limitation on state fiscal year spending pursuant to sub-subparagraph (A) of this subparagraph (II.5) shall be carried forward as an adjustment of the percentage change in state population determined pursuant to subparagraph (I) of this paragraph (b) 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 shall be added first to the percentage change in state population determined pursuant to subparagraph (I) of this paragraph (b) 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 subparagraph (I) of this paragraph (b) 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.
Amended by 2017 Ch. 253, § 16, eff. 8/9/2017.
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.