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HB 25B-1016

Spending Reduction Procedures

2025 First Extraordinary Session Introduced by Barbara Kirkmeyer and 1 co-sponsor

HB 25B-1016 aimed to enhance oversight of state spending cuts during revenue shortfalls by requiring hearings and plans from the Governor, but was postponed indefinitely.

House Committee on Appropriations Postpone Indefinitely
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Bill Summary · HB 25B-1016

Summary of HB 25B-1016: Spending Reduction Procedures

Bill Information:
- Bill Number: HB 25B-1016
- Title: Spending Reduction Procedures
- Status: Postponed Indefinitely by House Committee on Appropriations
- Introduced: August 21, 2025
- Sponsors:
- Rep. Rick Taggart (Primary)
- Sen. Barbara Kirkmeyer (Primary)

Purpose and Intent

HB 25B-1016 aimed to establish procedures for the Governor of Colorado to reduce state spending in response to revenue shortfalls. The bill sought to enhance legislative oversight by requiring the Joint Budget Committee (JBC) to hold hearings whenever there was a significant revenue forecast indicating a potential shortfall that could impact state functions or the General Fund reserve.

Key Provisions

  1. Joint Budget Committee Hearings:

    • The bill mandated that the JBC conduct hearings whenever the Governor's Office or Legislative Council Staff issued interim revenue estimates indicating a shortfall.
    • If the Governor issued an executive order to suspend state functions due to insufficient revenue, a hearing would be required to discuss the spending reduction plan.

  2. Spending Reduction Plans:

    • The Governor would be required to formulate a discretionary spending reduction plan if an executive order was extended beyond three months.
    • A required spending reduction plan would be necessary if revenue estimates indicated that General Fund expenditures would dip into the statutory reserve by specified amounts (e.g., using more than half of the reserve or dropping below $1 billion).

  3. Consultation with Departments:

    • Representatives from departments affected by the spending reduction plan would need to be available at JBC hearings to answer questions.

  4. Effective Date:

    • The bill would take effect upon the Governor's signature or if it became law without the signature, applying to executive orders and revenue estimates made thereafter.

Impact

  • State Workload: The bill was projected to have a minimal impact on state workload, with no appropriations required.
  • Fiscal Implications: The fiscal note indicated no expected changes in state expenditures, revenues, or full-time equivalent positions (FTEs) as a result of the bill.
  • Legislative Costs: While additional hearings could incur minimal costs related to legislator per diem and travel, these were not expected to require changes in appropriations.

Procedural Aspects

  • Postponement: The bill was postponed indefinitely by the House Committee on Appropriations on August 22, 2025, meaning it will not advance further in the legislative process.
  • No Amendments: The bill was introduced without amendments and did not require an appropriation clause.

Conclusion

HB 25B-1016 sought to improve fiscal accountability and transparency in state spending during times of revenue shortfalls. However, its indefinite postponement means that the proposed changes will not be implemented, leaving current procedures in place.

Compiled from official sources — confirm details with the bill’s official record.

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