Eleven state agencies held over $25 million in uncommitted cash reserves, exceeding the legal limits, according to Colorado’s Office of the State Auditor found.

The agencies include the Departments of Agriculture, Higher Education, Human Services, Labor and Employment, Law, Local Affairs, Military and Veterans Affairs, Public Health and Environment, Regulatory Agencies, and Revenue, and the Office of the Governor.

The excess reserves were held in 19 different cash funds, the audit found.

Two state department cash funds — the Department of Local Affairs’ Private Activity Bond Allocation Fund and its Mobile Home Park Act Dispute Resolution and Enforcement Fund, and the Department of Public Health and Environment’s Vital Records Fund — have held excess uncommitted reserves for at least three consecutive years.

Because of this, the Office of the State Controller has restricted the departments’ spending authority for those funds until the excess amount are spent. 

“Since the fees that agencies collect into cash funds are considered part of TABOR, or the Taxpayers’ Bill of Rights, revenue, excess cash reserves contribute to the state potentially exceeding TABOR limits in a given year,” said Lillian Adams, an audit supervisor.

The state was over the TABOR excess revenues cap by $1.4 billion for Fiscal Year 2024, the audit said.

The audit office has provided each department with recommendations on how to address excess uncommitted reserves.