HB26-1332 revises Colorado’s legislative department cash fund, which is the reserve used to support operations of the General Assembly and related legislative entities. The bill transfers $12 million from the fund to the general fund on June 30, 2026, and creates a fund limit of $8 million for fiscal year 2025-26, with that limit adjusted in future years based on changes in legislative branch appropriations. It also changes how money can flow into and out of the fund so that unspent legislative appropriations revert to the fund only up to the cap, and any excess above the cap is transferred to the general fund.
The bill also clarifies what money belongs in the fund, including fees from public records requests, and expressly authorizes the House, Senate, and legislative service agencies to seek, accept, and spend gifts, grants, and donations. It directs interest and income from the fund, including the redistricting accounts, to the general fund beginning in fiscal year 2025-26, and makes conforming changes to related statutes governing capital construction and technology funding so the legislative department cash fund and redistricting accounts are excluded from certain cash-fund definitions.
Impact
The bill amends Colorado Revised Statutes section 2-2-1601, restructuring the legislative department cash fund and adding a statutory cap, transfer rules, and revenue treatment provisions. It also makes conforming amendments to statutes governing capital construction and technology life-cycle funding, ensuring the legislative department cash fund and its redistricting accounts are treated consistently across state finance law. In practical terms, the measure reduces the amount of money that can accumulate in the legislative reserve and redirects excess balances and investment earnings to the general fund, while preserving continuous appropriations for legislative operations and redistricting expenses.
Sentiment
The bill appears to have been viewed as a fiscal management measure rather than a controversial policy change. Its passage through the appropriations process and final enactment suggest broad institutional support for limiting the size of the legislative reserve and returning excess funds to the general fund. The bill’s findings emphasize maintaining enough money for ongoing and unexpected legislative expenses, indicating a generally pragmatic and budget-focused sentiment.
Contention
The main point of potential contention is the transfer of $12 million from the legislative department cash fund to the general fund and the imposition of an $8 million cap, which could be seen as reducing the legislature’s financial cushion. Another possible issue is the redirection of interest and income from the fund to the general fund, along with the rule that excess reversions must be transferred out once the cap is reached. Supporters likely viewed these changes as prudent fiscal discipline, while any concern would center on whether the reduced reserve could limit the legislature’s flexibility for capital, technology, security, or emergency costs.