Lawmakers on Monday introduced in the state Senate the legislation setting up the 2025-26 budget, which contains hundreds of millions of dollars in funding cuts, transfers and sweeps.  

The spending plan comes in at $43.9 billion.

The plan includes $16.7 billion in general fund dollars. That is the discretionary money that comes from corporate and individual income taxes, as well as sales and use taxes. Lawmakers use that money to fund new programs, although it will be in short supply in a year when the Joint Budget Committee will have to find ways to cover a $1.2 billion shortfall.

Senate Bill 206 was introduced along with 63 “orbitals” — bills that make statutory changes to balance the budget. And that’s where a lot of the cuts to state spending can be found.

Among the largest is Senate Bill 264, which transfers $225.2 million from 52 separate cash funds to the general fund in the 2024-25 and 2025-26 budgets. The current year transfers would roll over into the 2025-26 budget.

The largest sweep is $71.4 million for the multimodal options fund, a cash fund within the Department of Transportation. The smallest is $265 from a dropout prevention grant fund in the Department of Education. That’s a reflection of just how much hunting lawmakers — and JBC staff — had to do to find a way to fill that $1.2 billion hole.

Another $13 million comes from the State Employee Reserve Fund — the bill eliminates that fund in its entirety. The reserve fund was basically a loan program for state employees, created in 2016 when lawmakers ended what was know as the “payday shift” that dated back to the 2001 recession.

Another bill eliminates a little-used property tax deferral program, resulting in savings of $2.5 million in 2025-26.

Senate Bill 260 eliminates the Colorado Household Financial Recovery Pilot Program, which was established by House Bill 22-1359, and incentivizes bank lending to low-income individuals and households, including those impacted by the COVID-19 pandemic. That will save $5 million in cash funds, which will then lead to the general fund.

Another $13 million comes from the State Employee Reserve Fund, and the bill eliminates that fund in its entirety. The reserve fund was basically a loan program for state employees, created in 2016 when lawmakers ended what was known as the “payday shift” that dated back to the 2001 recession.

The caveat is that voters would need to adopt a 2025 ballot measure in November that would increase tax revenue for the program.

Senate Bill 229 halts reimbursements for community health workers under Medicaid, resulting in $2.8 million in savings for 2025-26. Those reimbursements include preventive services, group and individual health education and health coaching, health navigations, transitions of care supports, screenings and assessment for nonclinical and social needs, and individual support and health advocacy, according to the Inclusive Higher Education Act, which provides grants to higher education institutions to create or expand programs for students intellectual and developmental disabilities. 

A grant program for homeless youth, contained in SB 235, will end a year early, resulting in a $182,568 savings in general funds. The Emergency Temporary Care for Children program, established in 2022, is a residential placement program for youth awaiting return to their home or other placements. The temporary housing lasts five days, and just two temporary shelters in Aurora and Arapahoe County, with 22 beds, took advantage of that program. The narrative noted the program was underutilized due to the lack of available beds.

The Colorado Crisis Hotline will be consolidated under the 988 Enterprise, a national hotline that provides services in Colorado, saving the state $3.6 million in general funds.

With only six schools participating, the School Mental Health Screening program, which aimed to identify potential risks related to unmet mental and emotional health needs among sixth through 12th-grade students, will also be discontinued, saving $2.8 million in general funds.

Some bills increase funding, such Senate Bill 227, which provides $2 million more to the Department of Early Childhood to help fill a funding shortfall for an early intervention program.

Senate Bill 247 modifies the National Guard tuition assistance program to a tuition waiver, resulting in a cost of $562,787 in general funds. The program’s annual full cost is approximately $1.8 million.

On Tuesday, the budget bill and the orbitals will be heard in the Senate Appropriations Committee. Since that is the “committee of reference,” the committee will take public testimony on those bills.

The Senate will then break into caucuses to review the budget package with their JBC members, which could take place as soon as Tuesday and continue into Wednesday. The debate on the long bill package will take place on Thursday, with a potential final vote as soon as Friday.